8.9A-507 - A-507. Effect of certain events on effectiveness of financing statement. - Virginia Statutes

§ 8.9A-507. Effect of certain events on effectiveness of financing statement.

(a) Disposition. A filed financing statement remains effective with respectto 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. Except as otherwise providedin subsection (c) and § 8.9A-508, a financing statement is not renderedineffective if, after the financing statement is filed, the informationprovided in the financing statement becomes seriously misleading under §8.9A-506.

(c) Change in debtor's name. If a debtor so changes its name that a filedfinancing statement becomes seriously misleading under § 8.9A-506:

(1) the financing statement is effective to perfect a security interest incollateral acquired by the debtor before, or within four months after, thechange; and

(2) the financing statement is not effective to perfect a security interestin collateral acquired by the debtor more than four months after the change,unless an amendment to the financing statement which renders the financingstatement not seriously misleading is filed within four months after thechange.

(1964, c. 219, § 8.9-402; 1966, c. 649; 1973, c. 509; 1976, c. 536; 1977, c.539; 1978, cc. 284, 285; 1982, c. 652; 1999, c. 96; 2000, c. 1007.)