§ 25-9-706. When initial financing statement suffices to continue effectiveness of financing statement. - North Carolina Statutes

§25‑9‑706.  When initial financing statement suffices to continueeffectiveness of financing statement.

(a)        Initial financingstatement in lieu of continuation statement. – The filing of an initialfinancing statement in the office specified in G.S. 25‑9‑501continues the effectiveness of a financing statement filed before July 1, 2001if:

(1)        The filing of aninitial financing statement in that office would be effective to perfect asecurity interest under this act;

(2)        The pre‑effective‑datefinancing statement was filed in an office in another state or another officein this State; and

(3)        The initialfinancing statement satisfies subsection (c) of this section.

(b)        Period of continuedeffectiveness. – The filing of an initial financing statement under subsection(a) of this section continues the effectiveness of the pre‑effective‑datefinancing statement:

(1)        If the initialfinancing statement is filed before July 1, 2001, for the period provided inG.S. 25‑9‑403 of former Article 9 with respect to a financingstatement; and

(2)        If the initialfinancing statement is filed after July 1, 2001, for the period provided inG.S. 25‑9‑515 with respect to an initial financing statement.

(c)        Requirement forinitial financing statement under subsection (a). – To be effective forpurposes of subsection (a) of this section, an initial financing statementmust:

(1)        Satisfy therequirements of Part 5 of this Article for an initial financing statement;

(2)        Identify the pre‑effective‑datefinancing statement by indicating the office in which the financing statementwas filed and providing the dates of filing and file numbers, if any, of thefinancing statement and of the most recent continuation statement filed withrespect to the financing statement; and

(3)        Indicate that thepre‑effective‑date financing statement remains effective. (2000‑169,s. 1.)