§ 25-9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement. - North Carolina Statutes

§25‑9‑508.  Effectiveness of financing statement if new debtorbecomes bound by security agreement.

(a)        Financing statementnaming original debtor. – Except as otherwise provided in this section, a filedfinancing statement naming an original debtor is effective to perfect asecurity interest in collateral in which a new debtor has or acquires rights tothe extent that the financing statement would have been effective had theoriginal debtor acquired rights in the collateral.

(b)        Financing statementbecoming seriously misleading. – If the difference between the name of theoriginal debtor and that of the new debtor causes a filed financing statementthat is effective under subsection (a) of this section to be seriouslymisleading under G.S. 25‑9‑506:

(1)        The financingstatement is effective to perfect a security interest in collateral acquired bythe new debtor before, and within four months after, the new debtor becomesbound under G.S. 25‑9‑203(d); and

(2)        The financingstatement is not effective to perfect a security interest in collateralacquired by the new debtor more than four months after the new debtor becomesbound under G.S. 25‑9‑203(d) unless an initial financing statementproviding the name of the new debtor is filed before the expiration of thattime.

(c)        When section notapplicable. – This section does not apply to collateral as to which a filedfinancing statement remains effective against the new debtor under G.S. 25‑9‑507(a).(1967, c. 562, s. 3; 1975, c. 862, s. 7; 2000‑169, s. 1.)