8.9A-508 - A-508. Effectiveness of financing statement if new debtor becomes bound by security agreement. - Virginia Statutes

§ 8.9A-508. Effectiveness of financing statement if new debtor becomes boundby security agreement.

(a) Financing statement naming original debtor. Except as otherwise providedin this section, a filed financing statement naming an original debtor iseffective 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 differencebetween the name of the original debtor and that of the new debtor causes afiled financing statement that is effective under subsection (a) to beseriously misleading under § 8.9A-506:

(1) the financing statement is effective to perfect a security interest incollateral acquired by the new debtor before, and within four months after,the new debtor becomes bound under § 8.9A-203 (d); and

(2) the financing statement is not effective to perfect a security interestin collateral acquired by the new debtor more than four months after the newdebtor becomes bound under § 8.9A-203 (d) unless an initial financingstatement providing the name of the new debtor is filed before the expirationof that time.

(c) When section not applicable. This section does not apply to collateral asto which a filed financing statement remains effective against the new debtorunder § 8.9A-507 (a).

(2000, c. 1007.)