§ 25-9-702. Savings clause. - North Carolina Statutes

§ 25‑9‑702. Savings clause.

(a)        Pre‑effective‑datetransactions or liens. – Except as otherwise provided in this Part, this actapplies to a transaction or lien within its scope, even if the transaction orlien was entered into or created before July 1, 2001.

(b)        Continuingvalidity. – Except as otherwise provided in subsection (c) of this section andG.S. 25‑9‑703 through G.S. 25‑9‑709:

(1)        Transactions andliens that were not governed by former Article 9, were validly entered into orcreated before July 1, 2001, and would be subject to this act if they had beenentered into or created after July 1, 2001, and the rights, duties, andinterests flowing from those transactions and liens remain valid after July 1,2001; and

(2)        The transactions andliens described in subdivision (1) of this subsection may be terminated,completed, consummated, and enforced as required or permitted by this act or bythe law that otherwise would apply if this act had not taken effect.

(c)        Pre‑effective‑dateproceedings. – This act does not affect an action, case, or proceedingcommenced before July 1, 2001.

(d)        Special rule forcertain governmental transactions. – Notwithstanding any other provision ofthis act, security interests that were excluded under former Article 9 pursuantto former G.S. 25‑9‑104(e) or as to which the filing requirementsof former Article 9 did not apply pursuant to former G.S. 25‑9‑302(6),and which are effective prior to July 1, 2001, but for which the applicablerequirements for creation, perfection, or enforceability under this act are notsatisfied on July 1, 2001, shall nonetheless be treated as valid, enforceable,and perfected security interests under this act for the duration of thosesecurity interests. (2000‑169, s. 1; 2001‑218, s. 4.)