§ 6A-9-508 - Effectiveness of financing statement if new debtor becomes bound by security agreement. - Rhode Island Statutes

SECTION 6A-9-508

   § 6A-9-508  Effectiveness of financingstatement if new debtor becomes bound by security agreement. – (a) Financing statement naming original debtor. Except as otherwiseprovided in this section, a filed financing statement naming an original debtoris effective to perfect a security interest in collateral in which a new debtorhas or acquires rights to the extent that the financing statement would havebeen effective had the original debtor acquired rights in the collateral.

   (b) Financing statement becoming seriously misleading.If the difference between the name of the original debtor and that of the newdebtor causes a filed financing statement that is effective under subsection(a) to be seriously misleading under § 6A-9-506:

   (1) The financing statement is effective to perfect asecurity interest in collateral acquired by the new debtor before, and withinfour months after, the new debtor becomes bound under § 6A-9-203(d); and

   (2) The financing statement is not effective to perfect asecurity interest in collateral acquired by the new debtor more than fourmonths after the new debtor becomes bound under § 6A-9-203(d) unless aninitial financing statement providing the name of the new debtor is filedbefore the expiration of that time.

   (c) When section not applicable. This section does notapply to collateral as to which a filed financing statement remains effectiveagainst the new debtor under § 6A-9-507(a).