§ 25-9-507. Effect of certain events on effectiveness of financing statement. - North Carolina Statutes

§25‑9‑507.  Effect of certain events on effectiveness of financingstatement.

(a)        Disposition. – Afiled financing statement remains effective with respect to collateral that issold, exchanged, leased, licensed, or otherwise disposed of and in which a securityinterest or agricultural lien continues, even if the secured party knows of orconsents to the disposition.

(b)        Informationbecoming seriously misleading. – Except as otherwise provided in subsection (c)of this section and G.S. 25‑9‑508, a financing statement is notrendered ineffective if, after the financing statement is filed, theinformation provided in the financing statement becomes seriously misleadingunder G.S. 25‑9‑506.

(c)        Change in debtor'sname. – If a debtor so changes its name that a filed financing statementbecomes seriously misleading under G.S. 25‑9‑506:

(1)        The financingstatement is effective to perfect a security interest in collateral acquired bythe debtor before, or within four months after, the change; and

(2)        The financing statementis not effective to perfect a security interest in collateral acquired by thedebtor more than four months after the change, unless an amendment to thefinancing statement which renders the financing statement not seriouslymisleading is filed within four months after the change. (1899,cc. 17, 247; 1901, cc. 329, 704; 1903, c. 489; 1905, cc. 226, 319; Rev., s.2055; 1907, c. 843; 1909, c. 532; P.L. 1913, c. 49; C.S., s. 2490; 1925, c.285, s. 1; 1931, c. 196; 1933, c. 101, s. 6; 1945, c. 182, s. 2; c. 196, s. 2;1951, c. 926, s. 1; 1955, c. 386, s. 1; 1957, c. 564; 1961, c. 574; 1965, c.700, s. 1; 1969, c. 1115, s. 1; 1975, c. 862, s. 7; 1983 (Reg. Sess., 1984), c.1116, s. 43; 1989, c. 523, s. 7; 2000‑169, s. 1.)