§ 6A-9-507 - Effect of certain events on effectiveness of financing statement. - Rhode Island Statutes

SECTION 6A-9-507

   § 6A-9-507  Effect of certain events oneffectiveness of financing statement. – (a) Disposition. A filed financing statement remains effective withrespect to collateral that is sold, exchanged, leased, licensed, or otherwisedisposed of and in which a security interest or agricultural lien continues,even if the secured party knows of or consents to the disposition.

   (b) Information becoming seriously misleading. Exceptas otherwise provided in subsection (c) and § 6A-9-508, a financingstatement is not rendered ineffective if, after the financing statement isfiled, the information provided in the financing statement becomes seriouslymisleading under § 6A-9-506.

   (c) Change in debtor's name. If a debtor so changesits name that a filed financing statement becomes seriously misleading under§ 6A-9-506:

   (1) The financing statement is effective to perfect asecurity interest in collateral acquired by the debtor before, or within fourmonths after, the change; and

   (2) The financing statement is not effective to perfect asecurity interest in collateral acquired by the debtor more than four monthsafter the change, unless an amendment to the financing statement which rendersthe financing statement not seriously misleading is filed within four monthsafter the change.