Maintaing Perfection by Filing

Question 0

Premature renewal

Answer 0

Continuation statement can’t be submitted earlier than 6 months before expiration of prior FS

Question 1

1) When everything remains the same

Answer 1

• A FS is generally only effective for 5 yrs from the date of filing
• To continue perfected status, a creditor must file a continuation statement every 5 yrs

Question 2

Retroactive Unperfection

Answer 2

Failure to file a continuation stmt (lapse) means that the security interest is deemed to have never been perfected as against purchaser of the collateral for value

Question 3

2) When debtor changes name

- & consequences of failure

Answer 3

If D changes name so that FS becomes seriously misleading, the C must file an amendment within 4 months of the name change in order to maintain a perfected security interest in the D’s property acquired 4 months after name change

Prospective Unperfection: C only loses perfected status in the collateral acquired by Debtor 4 months after the name change

Question 4

3) When debtor changes it’s location

& consequence of failure

Answer 4

The perfected status expires 4 months after the location change (or 1 yr after a transfer of collateral to a person that becomes a debtor thereby and is located in another jurisdiction) unless the creditor becomes unperfected in the new location within 4 months (or 1 yr) after the change

-Retroactive Unperfection

Question 5

4) when the collateral’s location changes

Answer 5

A creditor doesn’t need to do anything to maintain perfected status