70A-9a-316 - Continued perfection of security interest following change in governing law. - Utah Statutes

70A-9a-316. Continued perfection of security interest following change ingoverning law.
(1) A security interest perfected pursuant to the law of the jurisdiction designated inSubsection 70A-9a-301(1) or 70A-9a-305(3) remains perfected until the earliest of:
(a) the time perfection would have ceased under the law of that jurisdiction;
(b) the expiration of four months after a change of the debtor's location to anotherjurisdiction; or
(c) the expiration of one year after a transfer of collateral to a person that therebybecomes a debtor and is located in another jurisdiction.
(2) If a security interest described in Subsection (1) becomes perfected under the law ofthe other jurisdiction before the earliest time or event described in that subsection, it remainsperfected thereafter. If the security interest does not become perfected under the law of the otherjurisdiction before the earliest time or event, it becomes unperfected and is deemed never to havebeen perfected as against a purchaser of the collateral for value.
(3) A possessory security interest in collateral, other than goods covered by a certificateof title and as-extracted collateral consisting of goods, remains continuously perfected if:
(a) the collateral is located in one jurisdiction and subject to a security interest perfectedunder the law of that jurisdiction;
(b) thereafter the collateral is brought into another jurisdiction; and
(c) upon entry into the other jurisdiction, the security interest is perfected under the law ofthe other jurisdiction.
(4) Except as otherwise provided in Subsection (5), a security interest in goods coveredby a certificate of title which is perfected by any method under the law of another jurisdictionwhen the goods become covered by a certificate of title from this state remains perfected until thesecurity interest would have become unperfected under the law of the other jurisdiction had thegoods not become so covered.
(5) A security interest described in Subsection (4) becomes unperfected as against apurchaser of the goods for value and is deemed never to have been perfected as against apurchaser of the goods for value if the applicable requirements for perfection under Subsection70A-9a-311(2) or Section 70A-9a-313 are not satisfied before the earlier of:
(a) the time the security interest would have become unperfected under the law of theother jurisdiction had the goods not become covered by a certificate of title from this state; or
(b) the expiration of four months after the goods had become so covered.
(6) A security interest in deposit accounts, letter-of-credit rights, or investment propertywhich is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominatedperson's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary'sjurisdiction, as applicable, remains perfected until the earlier of:
(a) the time the security interest would have become unperfected under the law of thatjurisdiction; or
(b) the expiration of four months after a change of the applicable jurisdiction to anotherjurisdiction.
(7) If a security interest described in Subsection (6) becomes perfected under the law ofthe other jurisdiction before the earlier of the time or the end of the period described in thatsubsection, it remains perfected thereafter. If the security interest does not become perfectedunder the law of the other jurisdiction before the earlier of that time or the end of that period, it

becomes unperfected and is deemed never to have been perfected as against a purchaser of thecollateral for value.

Enacted by Chapter 252, 2000 General Session