By: Carona S.B. No. 782
(Deshotel)
A BILL TO BE ENTITLED
AN ACT
relating to uniform law on secured transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 9.102, Business & Commerce Code, is
amended by amending Subdivisions (7), (10), (50), and (71) and
adding Subdivision (68-a) to read as follows:
(7) "Authenticate" means:
(A) to sign; or
(B) [to execute or otherwise adopt a symbol, or
encrypt or similarly process a record in whole or in part,] with
[the] present intent [of the authenticating person] to [identify
the person and] adopt or accept a record, to attach to or logically
associate with the record an electronic sound, symbol, or process.
(10) "Certificate of title" means a certificate of
title with respect to which a statute provides for the security
interest in question to be indicated on the certificate as a
condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the collateral.
The term includes another record maintained as an alternative to a
certificate of title by the governmental unit that issues
certificates of title if a statute permits the security interest in
question to be indicated on the record as a condition or result of
the security interest's obtaining priority over the rights of a
lien creditor with respect to the collateral.
(50) "Jurisdiction of organization," with respect to a
registered organization, means the jurisdiction under whose law the
organization is formed or organized.
(68-a) "Public organic record" means a record that is
available to the public for inspection and that is:
(A) a record consisting of the record initially
filed with or issued by a state or the United States to form or
organize an organization and any record filed with or issued by the
state or the United States that amends or restates the initial
record;
(B) an organic record of a business trust
consisting of the record initially filed with a state and any record
filed with the state that amends or restates the initial record, if
a statute of the state governing business trusts requires that the
record be filed with the state; or
(C) a record consisting of legislation enacted by
the legislature of a state or the Congress of the United States that
forms or organizes an organization, any record amending the
legislation, and any record filed with or issued by the state or the
United States that amends or restates the name of the
organization.
(71) "Registered organization" means an organization
formed or organized solely under the law of a single state or the
United States by the filing of a public organic record with, the
issuance of a public organic record by, or the enactment of
legislation by [and as to which] the state or the United States
[must maintain a public record showing the organization to have
been organized]. The term includes a business trust that is formed
or organized under the law of a single state if a statute of the
state governing business trusts requires that the business trust's
organic record be filed with the state.
SECTION 2. Section 9.105, Business & Commerce Code, is
amended to read as follows:
Sec. 9.105. CONTROL OF ELECTRONIC CHATTEL PAPER. (a) A
secured party has control of electronic chattel paper if a system
employed for evidencing the transfer of interests in the chattel
paper reliably establishes the secured party as the person to which
the chattel paper was assigned.
(b) A system satisfies Subsection (a), and a secured party
has control of electronic chattel paper, if the record or records
comprising the chattel paper are created, stored, and assigned in
such a manner that:
(1) a single authoritative copy of the record or
records exists that is unique, identifiable, and, except as
otherwise provided in Subdivisions (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the secured
party as the assignee of the record or records;
(3) the authoritative copy is communicated to and
maintained by the secured party or its designated custodian;
(4) copies or amendments [revisions] that add or
change an identified assignee of the authoritative copy can be made
only with the consent [participation] of the secured party;
(5) each copy of the authoritative copy and any copy of
a copy is readily identifiable as a copy that is not the
authoritative copy; and
(6) any amendment [revision] of the authoritative copy
is readily identifiable as [an] authorized or unauthorized
[revision].
SECTION 3. Subsection (f), Section 9.307, Business &
Commerce Code, is amended to read as follows:
(f) Except as otherwise provided in Subsection (i), a
registered organization that is organized under the law of the
United States and a branch or agency of a bank that is not organized
under the law of the United States or a state are located:
(1) in the state that the law of the United States
designates, if the law designates a state of location;
(2) in the state that the registered organization,
branch, or agency designates, if the law of the United States
authorizes the registered organization, branch, or agency to
designate its state of location, including by designating its main
office, home office, or other comparable office; or
(3) in the District of Columbia, if neither
Subdivision (1) nor Subdivision (2) applies.
SECTION 4. Subsection (a), Section 9.311, Business &
Commerce Code, is amended to read as follows:
(a) Except as otherwise provided in Subsection (d), the
filing of a financing statement is not necessary or effective to
perfect a security interest in property subject to:
(1) a statute, regulation, or treaty of the United
States whose requirements for a security interest's obtaining
priority over the rights of a lien creditor with respect to the
property preempt Section 9.310(a);
(2) the following statutes of this state: a
certificate of title statute of this state or rules adopted under
the statute to the extent the statute or rules provide for a
security interest to be indicated on the certificate of title as a
condition or result of perfection or such alternative to notation
as may be prescribed by those statutes or rules of this state
[Chapter 501, Transportation Code, relating to the certificates of
title for motor vehicles; Subchapter B-1, Chapter 31, Parks and
Wildlife Code, relating to the certificates of title for vessels
and outboard motors; Chapter 1201, Occupations Code, relating to
the documents of title for manufactured homes]; or Chapter 261,
relating to utility security instruments; or
(3) a [certificate of title] statute of another
jurisdiction that provides for a security interest to be indicated
on a [the] certificate of title as a condition or result of the
security interest's obtaining priority over the rights of a lien
creditor with respect to the property.
SECTION 5. The heading to Section 9.316, Business &
Commerce Code, is amended to read as follows:
Sec. 9.316. EFFECT OF [CONTINUED PERFECTION OF SECURITY
INTEREST FOLLOWING] CHANGE IN GOVERNING LAW.
SECTION 6. Section 9.316, Business & Commerce Code, is
amended by adding Subsections (h) and (i) to read as follows:
(h) The following rules apply to collateral to which a
security interest attaches within four months after the debtor
changes its location to another jurisdiction:
(1) A financing statement filed before the change of
the debtor's location pursuant to the law of the jurisdiction
designated in Section 9.301(1) or 9.305(c) is effective to perfect
a security interest in the collateral if the financing statement
would have been effective to perfect a security interest in the
collateral if the debtor had not changed its location.
(2) If a security interest that is perfected by a
financing statement that is effective under Subdivision (1) becomes
perfected under the law of the other jurisdiction before the
earlier of the time the financing statement would have become
ineffective under the law of the jurisdiction designated in Section
9.301(1) or 9.305(c) or the expiration of the four-month period, it
remains perfected thereafter. If the security interest does not
become perfected under the law of the other jurisdiction before the
earlier time or event, it becomes unperfected and is deemed never to
have been perfected as against a purchaser of the collateral for
value.
(i) If a financing statement naming an original debtor is
filed pursuant to the law of the jurisdiction designated in Section
9.301(1) or 9.305(c) and the new debtor is located in another
jurisdiction, the following rules apply:
(1) The financing statement is effective to perfect a
security interest in collateral in which the new debtor has or
acquires rights before or within four months after the new debtor
becomes bound under Section 9.203(d), if the financing statement
would have been effective to perfect a security interest in the
collateral if the collateral had been acquired by the original
debtor.
(2) A security interest that is perfected by the
financing statement and that becomes perfected under the law of the
other jurisdiction before the earlier of the expiration of the
four-month period or the time the financing statement would have
become ineffective under the law of the jurisdiction designated in
Section 9.301(1) or 9.305(c) remains perfected thereafter. A
security interest that is perfected by the financing statement but
that does not become perfected under the law of the other
jurisdiction before the earlier time or event becomes unperfected
and is deemed never to have been perfected as against a purchaser of
the collateral for value.
SECTION 7. Subsections (b) and (d), Section 9.317, Business &
Commerce Code, are amended to read as follows:
(b) Except as otherwise provided in Subsection (e), a buyer,
other than a secured party, of tangible chattel paper, tangible
documents, goods, instruments, or a certificated security
[certificate] takes free of a security interest or agricultural
lien if the buyer gives value and receives delivery of the
collateral without knowledge of the security interest or
agricultural lien and before it is perfected.
(d) A licensee of a general intangible or a buyer, other
than a secured party, of collateral [accounts, electronic chattel
paper, electronic documents, general intangibles, or investment
property] other than tangible chattel paper, tangible documents,
goods, instruments, or a certificated security takes free of a
security interest if the licensee or buyer gives value without
knowledge of the security interest and before it is perfected.
SECTION 8. Section 9.326, Business & Commerce Code, is
amended to read as follows:
Sec. 9.326. PRIORITY OF SECURITY INTERESTS CREATED BY NEW
DEBTOR. (a) Subject to Subsection (b), a security interest that
is created by a new debtor in collateral in which the new debtor has
or acquires rights and [that is] perfected by a filed financing
statement that would be ineffective to perfect the security
interest but for the application of Section 9.508 or of Sections
9.508 and 9.316(i)(1) [is effective solely under Section 9.508 in
collateral in which a new debtor has or acquires rights] is
subordinate to a security interest in the same collateral that is
perfected other than by such a filed financing statement [that is
effective solely under Section 9.508].
(b) The other provisions of this subchapter determine the
priority among conflicting security interests in the same
collateral perfected by filed financing statements described in
Subsection (a) [that are effective solely under Section 9.508].
However, if the security agreements to which a new debtor became
bound as debtor were not entered into by the same original debtor,
the conflicting security interests rank according to priority in
time of the new debtor's having become bound.
SECTION 9. Section 9.406, Business & Commerce Code, is
amended by amending Subsections (e) and (f) and adding Subsection
(k) to read as follows:
(e) Subsection (d) does not apply to the sale of a payment
intangible or promissory note, other than a sale pursuant to a
disposition under Section 9.610 or an acceptance of collateral
under Section 9.620.
(f) Except as otherwise provided in Sections 2A.303 and
9.407, and subject to Subsections (h), [and] (i), and (k), a rule of
law, statute, or regulation that prohibits, restricts, or requires
the consent of a government, governmental body or official, or
account debtor to the assignment or transfer of, or creation of a
security interest in, an account or chattel paper is ineffective to
the extent that the rule of law, statute, or regulation:
(1) prohibits, restricts, or requires the consent of
the government, governmental body or official, or account debtor to
the assignment or transfer of, or the creation, attachment,
perfection, or enforcement of a security interest in, the account
or chattel paper; or
(2) provides that the assignment or transfer or the
creation, attachment, perfection, or enforcement of the security
interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination, or remedy under
the account or chattel paper.
(k) An assignment under this section is subject to Section
466.410, Government Code.
SECTION 10. Subsection (b), Section 9.408, Business &
Commerce Code, is amended to read as follows:
(b) Subsection (a) applies to a security interest in a
payment intangible or promissory note only if the security interest
arises out of a sale of the payment intangible or promissory note,
other than a sale pursuant to a disposition under Section 9.610 or
an acceptance of collateral under Section 9.620.
SECTION 11. Subsection (c), Section 9.502, Business &
Commerce Code, is amended to read as follows:
(c) A record of a mortgage is effective, from the date of
recording, as a financing statement filed as a fixture filing or as
a financing statement covering as-extracted collateral or timber to
be cut only if:
(1) the record indicates the goods or accounts that it
covers;
(2) the goods are or are to become fixtures related to
the real property described in the record or the collateral is
related to the real property described in the record and is
as-extracted collateral or timber to be cut;
(3) the record satisfies the requirements for a
financing statement in this section, but:
(A) the record need not indicate [other than an
indication] that it is to be filed in the real property records; and
(B) the record sufficiently provides the name of
a debtor who is an individual if it provides the individual name of
the debtor or the surname and first personal name of the debtor,
even if the debtor is an individual to whom Section 9.503(a)(4) or
(5) applies; and
(4) the record is duly recorded.
SECTION 12. Section 9.503, Business & Commerce Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(f), (g), and (h) to read as follows:
(a) A financing statement sufficiently provides the name of
the debtor:
(1) except as otherwise provided in Subdivision (3),
if the debtor is a registered organization or the collateral is held
in a trust that is a registered organization, only if the financing
statement provides the name that is stated to be the registered
organization's name [of the debtor indicated] on the public organic
record most recently filed with or issued or enacted by [debtor's
formation documents that are filed of public record in] the
registered organization's [debtor's] jurisdiction of organization
[to create the registered organization and] that purports to state,
amend, or restate the registered organization's [show the debtor to
have been organized, including any amendments to those documents
for the express purpose of amending the debtor's] name;
(2) subject to Subsection (f), if the collateral is
being administered by the personal representative of a decedent
[debtor is a decedent's estate], only if the financing statement
provides, as the name of the debtor, the name of the decedent and,
in a separate part of the financing statement, indicates that the
collateral is being administered by a personal representative
[debtor is an estate];
(3) if the collateral [debtor] is held in a trust that
is not a registered organization [or a trustee acting with respect
to property held in trust], only if the financing statement:
(A) provides, as the name of the debtor:
(i) if the organic record of the trust
specifies a name [the name specified] for the trust, the name so [in
its organic documents or, if no name is] specified; or
(ii) if the organic record of the trust does
not specify a name for the trust, [provides] the name of the settlor
or testator [and additional information sufficient to distinguish
the debtor from other trusts having one or more of the same
settlors]; and
(B) in a separate part of the financing
statement:
(i) if the name is provided in accordance
with Paragraph (A)(i), indicates [, in the debtor's name or
otherwise,] that the collateral [debtor] is held in a trust; or
(ii) if the name is provided in accordance
with Paragraph (A)(ii), provides additional information sufficient
to distinguish the trust from other trusts having one or more of the
same settlors or the same testator and indicates that the
collateral is held in a trust, unless the additional information so
indicates [or is a trustee acting with respect to property held in
trust];
(4) subject to Subsection (g), if the debtor is an
individual to whom this state has issued a driver's license that has
not expired or to whom the agency of this state that issues driver's
licenses has issued, in lieu of a driver's license, a personal
identification card that has not expired, only[,] if the financing
statement provides the [individual's] name of the individual that
is indicated [shown] on the [individual's] driver's license or
personal identification card [certificate issued by the
individual's state of residence];
(5) if the debtor is an individual to whom Subdivision
(4) does not apply, only if the financing statement provides the
individual name of the debtor or the surname and first personal name
of the debtor; and
(6) [(5)] in other cases:
(A) if the debtor has a name, only if it [the
financing statement] provides the [individual or] organizational
name of the debtor; and
(B) if the debtor does not have a name, only if it
[the financing statement] provides the names of the partners,
members, associates, or other persons comprising the debtor, in a
manner that each name provided would be sufficient if the person
named were the debtor.
(b) A financing statement that provides the name of the
debtor in accordance with Subsection (a) is not rendered
ineffective by the absence of:
(1) a trade name or other name of the debtor; or
(2) unless required under Subsection (a)(6)(B)
[(a)(4)(B)], names of partners, members, associates, or other
persons comprising the debtor.
(f) The name of the decedent indicated on the order
appointing the personal representative of the decedent issued by
the court having jurisdiction over the collateral is sufficient as
the "name of the decedent" under Subsection (a)(2).
(g) If this state has issued to an individual more than one
driver's license or, if none, more than one identification card, of
a kind described in Subsection (a)(4), the driver's license or
identification card, as applicable, that was issued most recently
is the one to which Subsection (a)(4) refers.
(h) The "name of the settlor or testator" means:
(1) if the settlor is a registered organization, the
name of the registered organization indicated on the public organic
record filed with or issued or enacted by the registered
organization's jurisdiction of organization; or
(2) in other cases, the name of the settlor or testator
indicated in the trust's organic record.
SECTION 13. Subsection (c), Section 9.507, Business &
Commerce Code, is amended to read as follows:
(c) If the [a debtor so changes its] name that a filed
financing statement provides for a debtor becomes insufficient as
the name of the debtor under Section 9.503(a) so that the financing
statement becomes seriously misleading under Section 9.506:
(1) the financing statement is effective to perfect a
security interest in collateral acquired by the debtor before, or
within four months after, the filed financing statement becomes
seriously misleading [change]; and
(2) the financing statement is not effective to
perfect a security interest in collateral acquired by the debtor
more than four months after the filed financing statement becomes
seriously misleading [change], unless an amendment to the financing
statement that renders the financing statement not seriously
misleading is filed within four months after that event [the
change].
SECTION 14. Subsection (f), Section 9.515, Business &
Commerce Code, is amended to read as follows:
(f) If a debtor is a transmitting utility and a filed
initial financing statement so indicates, the financing statement
is effective until a termination statement is filed.
SECTION 15. Subsection (b), Section 9.516, Business &
Commerce Code, is amended to read as follows:
(b) Filing does not occur with respect to a record that a
filing office refuses to accept because:
(1) the record is not communicated by a method or
medium of communication authorized by the filing office;
(2) an amount equal to or greater than the applicable
filing fee is not tendered;
(3) the filing office is unable to index the record
because:
(A) in the case of an initial financing
statement, the record does not provide a name for the debtor;
(B) in the case of an amendment or information
[correction] statement, the record:
(i) does not identify the initial financing
statement as required by Section 9.512 or 9.518, as applicable; or
(ii) identifies an initial financing
statement whose effectiveness has lapsed under Section 9.515;
(C) in the case of an initial financing statement
that provides the name of a debtor identified as an individual or an
amendment that provides a name of a debtor identified as an
individual that was not previously provided in the financing
statement to which the record relates, the record does not identify
the debtor's surname [last name]; or
(D) in the case of a record filed or recorded in
the filing office described in Section 9.501(a)(1), the record does
not provide the name of the debtor and a sufficient description of
the real property to which it relates;
(4) in the case of an initial financing statement or an
amendment that adds a secured party of record, the record does not
provide a name and mailing address for the secured party of record;
(5) in the case of an initial financing statement or an
amendment that provides a name of a debtor that was not previously
provided in the financing statement to which the amendment relates,
the record does not:
(A) provide a mailing address for the debtor;
(B) indicate whether the debtor is an individual
or an organization; or
(C) if the financing statement indicates that the
debtor is an organization, provide:
(i) a type of organization for the debtor;
(ii) a jurisdiction of organization for the
debtor; or
(iii) an organizational identification
number for the debtor or indicate that the debtor has none;
(6) in the case of an assignment reflected in an
initial financing statement under Section 9.514(a) or an amendment
filed under Section 9.514(b), the record does not provide a name and
mailing address for the assignee;
(7) in the case of a continuation statement, the
record is not filed within the six-month period prescribed by
Section 9.515(d); or
(8) the record is not on an industry standard form,
including a national standard form or a form approved by the
International Association of Commercial Administrators, adopted by
rule by the secretary of state.
SECTION 16. Section 9.518, Business & Commerce Code, is
amended to read as follows:
Sec. 9.518. CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED
RECORD. (a) Any person named as a debtor or a secured party may
file an information [a correction] statement with respect to a
record if the person believes that the record is inaccurate or was
wrongfully filed.
(b) An information [A correction] statement must:
(1) identify the record to which it relates by the file
number assigned to the initial financing statement to which the
record relates;
(2) indicate that it is an information [a correction]
statement; and
(3) provide the basis for the person's belief that the
record is inaccurate and indicate the manner in which the person
believes the record should be amended to cure any inaccuracy or
provide the basis for the person's belief that the record was
wrongfully filed.
(c) The filing of an information [a correction] statement
does not affect the effectiveness of an initial financing statement
or other filed record.
(d) Filing of an information [a correction] statement is not
effective as an amendment to a filed financing statement and is not
sufficient to effect a change in the manner in which the filing
office has indexed a financing statement or information contained
in a financing statement.
SECTION 17. Subsection (b), Section 9.607, Business &
Commerce Code, is amended to read as follows:
(b) If necessary to enable a secured party to exercise under
Subsection (a)(3) the right of a debtor to enforce a mortgage
nonjudicially, the secured party may record in the office in which a
record of the mortgage is recorded:
(1) a copy of the security agreement that creates or
provides for a security interest in the obligation secured by the
mortgage; and
(2) the secured party's sworn affidavit in recordable
form stating that:
(A) a default has occurred with respect to the
obligation secured by the mortgage; and
(B) the secured party is entitled to enforce the
mortgage nonjudicially.
SECTION 18. Chapter 9, Business & Commerce Code, is amended
by adding Subchapter H to read as follows:
SUBCHAPTER H. TRANSITION PROVISIONS FOR 2013 AMENDMENTS
Sec. 9.801. EFFECTIVE DATE OF AMENDMENTS. (a) In this
subchapter, "2013 amendments" means the amendments to this chapter
enacted by the Act of the 82nd Legislature, Regular Session, 2011,
that enacted this subchapter.
(b) The 2013 amendments take effect July 1, 2013.
Sec. 9.802. SAVING CLAUSE. (a) Except as otherwise
provided in this subchapter, the 2013 amendments apply to a
transaction or lien within its scope, even if the transaction or
lien was entered into or created before July 1, 2013.
(b) The 2013 amendments do not affect an action, case, or
proceeding commenced before July 1, 2013.
Sec. 9.803. SECURITY INTEREST PERFECTED BEFORE EFFECTIVE
DATE. (a) A security interest that is a perfected security
interest immediately before July 1, 2013, is a perfected security
interest under this chapter, as amended by the 2013 amendments, if,
when the 2013 amendments take effect, the applicable requirements
for attachment and perfection under this chapter, as amended by the
2013 amendments, are satisfied without further action.
(b) Except as otherwise provided in Section 9.805, if,
immediately before July 1, 2013, a security interest is a perfected
security interest, but the applicable requirements for perfection
under this chapter, as amended by the 2013 amendments, are not
satisfied when the 2013 amendments take effect, the security
interest remains perfected thereafter only if the applicable
requirements for perfection under this chapter, as amended by the
2013 amendments, are satisfied within one year after the 2013
amendments take effect.
Sec. 9.804. SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE
DATE. A security interest that is an unperfected security interest
immediately before July 1, 2013, becomes a perfected security
interest:
(1) without further action, when the 2013 amendments
take effect if the applicable requirements for perfection under
this chapter, as amended by the 2013 amendments, are satisfied
before or at that time; or
(2) when the applicable requirements for perfection
are satisfied if the requirements are satisfied after that time.
Sec. 9.805. EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE
DATE. (a) The filing of a financing statement before the 2013
amendments take effect is effective to perfect a security interest
to the extent the filing would satisfy the applicable requirements
for perfection under this chapter, as amended by the 2013
amendments.
(b) The 2013 amendments do not render ineffective an
effective financing statement that, before July 1, 2013, is filed
and satisfies the applicable requirements for perfection under the
law of the jurisdiction governing perfection as provided in this
chapter as it existed before amendment. However, except as
otherwise provided in Subsections (c) and (d) and Section 9.806,
the financing statement ceases to be effective:
(1) if the financing statement is filed in this state,
at the time the financing statement would have ceased to be
effective had the 2013 amendments not taken effect; or
(2) if the financing statement is filed in another
jurisdiction, at the earlier of:
(A) the time the financing statement would have
ceased to be effective under the law of that jurisdiction; or
(B) June 30, 2018.
(c) The filing of a continuation statement after the 2013
amendments take effect does not continue the effectiveness of the
financing statement filed before July 1, 2013. However, on the
timely filing of a continuation statement after the 2013 amendments
take effect and in accordance with the law of the jurisdiction
governing perfection as provided in this chapter, as amended by the
2013 amendments, the effectiveness of a financing statement filed
in the same office in that jurisdiction before the 2013 amendments
take effect continues for the period provided by the law of that
jurisdiction.
(d) Subsection (b)(2)(B) applies to a financing statement
that, before July 1, 2013, is filed against a transmitting utility
and satisfies the applicable requirements for perfection under the
law of the jurisdiction governing perfection as provided in this
chapter as it existed before amendment, only to the extent that this
chapter, as amended by the 2013 amendments, provides that the law of
a jurisdiction other than the jurisdiction in which the financing
statement is filed governs perfection of a security interest in
collateral covered by the financing statement.
(e) A financing statement that includes a financing
statement filed before the 2013 amendments take effect and a
continuation statement filed after the 2013 amendments take effect
is effective only to the extent that it satisfies the requirements
of Subchapter E, as amended by the 2013 amendments, for an initial
financing statement. A financing statement that indicates that the
debtor is a decedent's estate indicates that the collateral is
being administered by a personal representative within the meaning
of Section 9.503(a)(2), as amended by the 2013 amendments. A
financing statement that indicates that the debtor is a trust or is
a trustee acting with respect to property held in trust indicates
that the collateral is held in a trust within the meaning of Section
9.503(a)(3), as amended by the 2013 amendments.
Sec. 9.806. WHEN INITIAL FINANCING STATEMENT SUFFICES TO
CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. (a) The filing of
an initial financing statement in the office specified in Section
9.501 continues the effectiveness of a financing statement filed
before July 1, 2013, if:
(1) the filing of an initial financing statement in
that office would be effective to perfect a security interest under
this chapter, as amended by the 2013 amendments;
(2) the pre-effective-date financing statement was
filed in an office in another state; and
(3) the initial financing statement satisfies
Subsection (c).
(b) The filing of an initial financing statement under
Subsection (a) continues the effectiveness of the
pre-effective-date financing statement:
(1) if the initial financing statement is filed before
July 1, 2013, for the period provided in unamended Section 9.515
with respect to an initial financing statement; and
(2) if the initial financing statement is filed after
the 2013 amendments take effect, for the period provided in Section
9.515, as amended by the 2013 amendments, with respect to an initial
financing statement.
(c) To be effective for purposes of Subsection (a), an
initial financing statement must:
(1) satisfy the requirements of Subchapter E, as
amended by the 2013 amendments, for an initial financing statement;
(2) identify the pre-effective-date financing
statement by indicating the office in which the financing statement
was filed and providing the dates of filing and file numbers, if
any, of the financing statement and of the most recent continuation
statement filed with respect to the financing statement; and
(3) indicate that the pre-effective-date financing
statement remains effective.
Sec. 9.807. AMENDMENT OF PRE-EFFECTIVE-DATE FINANCING
STATEMENT. (a) In this section, "pre-effective-date financing
statement" means a financing statement filed before July 1, 2013.
(b) After the 2013 amendments take effect, a person may add
or delete collateral covered by, continue or terminate the
effectiveness of, or otherwise amend the information provided in, a
pre-effective-date financing statement only in accordance with the
law of the jurisdiction governing perfection as provided in this
chapter, as amended by the 2013 amendments. However, the
effectiveness of a pre-effective-date financing statement also may
be terminated in accordance with the law of the jurisdiction in
which the financing statement is filed.
(c) Except as otherwise provided in Subsection (d), if the
law of this state governs perfection of a security interest, the
information in a pre-effective-date financing statement may be
amended after the 2013 amendments take effect only if:
(1) the pre-effective-date financing statement and an
amendment are filed in the office specified in Section 9.501;
(2) an amendment is filed in the office specified in
Section 9.501 concurrently with, or after the filing in that office
of, an initial financing statement that satisfies Section 9.806(c);
or
(3) an initial financing statement that provides the
information as amended and satisfies Section 9.806(c) is filed in
the office specified in Section 9.501.
(d) If the law of this state governs perfection of a
security interest, the effectiveness of a pre-effective-date
financing statement may be continued only under Sections 9.805(c)
and (e) or Section 9.806.
(e) Whether or not the law of this state governs perfection
of a security interest, the effectiveness of a pre-effective-date
financing statement filed in this state may be terminated after the
2013 amendments take effect by filing a termination statement in
the office in which the pre-effective-date financing statement is
filed, unless an initial financing statement that satisfies Section
9.806(c) has been filed in the office specified by the law of the
jurisdiction governing perfection as provided in this chapter, as
amended by the 2013 amendments, as the office in which to file a
financing statement.
Sec. 9.808. PERSON ENTITLED TO FILE INITIAL FINANCING
STATEMENT OR CONTINUATION STATEMENT. A person may file an initial
financing statement or a continuation statement under this
subchapter if:
(1) the secured party of record authorizes the filing;
and
(2) the filing is necessary under this subchapter:
(A) to continue the effectiveness of a financing
statement filed before July 1, 2013; or
(B) to perfect or continue the perfection of a
security interest.
Sec. 9.809. PRIORITY. The 2013 amendments determine the
priority of conflicting claims to collateral. However, if the
relative priorities of the claims were established before July 1,
2013, this chapter as it existed before amendment determines
priority.
SECTION 19. Chapter 11, Business & Commerce Code, is
repealed.
SECTION 20. This Act takes effect July 1, 2013.