June 30, 2002 Deadline for Maintaining Perfection of Certain Security Interests Under Revised UCC Article 9
By Norman A. Futami
The Revised Uniform Commercial Code Article 9, governing security interests in personal property and the sale of accounts, chattel paper, payment intangibles and promissory notes, is now effective in all fifty States and the District of Columbia. Under the transition rules of the Revised UCC Article 9, secured parties have until June 30, 2002 to continue perfection of security interests under certain circumstances. Security interests which have been perfected by filing a financing statement under the Former UCC Article 9 will generally remain perfected for the five-year effectiveness of such filing. However, security interests perfected under the Former UCC Article 9 or other state law by a means other than a filed financing statement and which do not otherwise satisfy the perfection requirements of Revised UCC Article 9 are subject to loss of perfection on June 30, 2002 unless perfection is accomplished under the new rules.