§ 25-9-703. Security interest perfected before effective date. - North Carolina Statutes

§25‑9‑703.  Security interest perfected before effective date.

(a)        Continuing priorityover lien creditor: perfection requirements satisfied. – A security interestthat is enforceable immediately before July 1, 2001 and would have priorityover the rights of a person that becomes a lien creditor at that time is aperfected security interest under this act if, on July 1, 2001, the applicablerequirements for enforceability and perfection under this act are satisfiedwithout further action.

(b)        Continuing priorityover lien creditor: perfection requirements not satisfied. – Except asotherwise provided in G.S. 25‑9‑705, if, immediately before July 1,2001, a security interest is enforceable and would have priority over therights of a person that becomes a lien creditor at that time, but theapplicable requirements for enforceability or perfection under this act are notsatisfied on July 1, 2001, the security interest:

(1)        Is a perfectedsecurity interest for one year after July 1, 2001;

(2)        Remains enforceablethereafter only if the security interest becomes enforceable under G.S. 25‑9‑203before the year expires; and

(3)        Remains perfectedthereafter only if the applicable requirements for perfection under this actare satisfied before the year expires. (2000‑169, s. 1.)