LD 2245
pg. 175
Page 174 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 176 of 493
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LR 1087
Item 1

 
the earlier of the time or the end of the period described in
that subsection, it remains perfected thereafter.__If the
security interest does not become perfected under the law of the
other jurisdiction before the earlier of that time or the end of
that period, it becomes unperfected and is deemed never to have
been perfected as against a purchaser of the collateral for
value.

 
Official Comment

 
1. Source. Former Section 9-103(1)(d), (2)(b), (3)(e), as
modified.

 
2. Continued Perfection. This section deals with continued
perfection of security interests that have been perfected under
the law of another jurisdiction. The fact that the law of a
particular jurisdiction ceases to govern perfection under
Sections 9-301 through 9-307 [Maine cite sections 9-1301 to 9-
1307] does not necessarily mean that a security interest
perfected under that law automatically becomes unperfected. To
the contrary: This section generally provides that a security
interest perfected under the law of one jurisdiction remains
perfected for a fixed period of time (four months or one year,
depending on the circumstances), even though the jurisdiction
whose law governs perfection changes. However, cessation of
perfection under the law of the original jurisdiction cuts short
the fixed period. The 4-month and one-year periods are long
enough for a secured party to discover in most cases that the law
of a different jurisdiction governs perfection and to reperfect
(typically by filing) under the law of that jurisdiction. If a
secured party properly reperfects a security interest before it
becomes unperfected under subsection (a) [Maine cite subsection
(1)], then the security interest remains perfected continuously
thereafter. See subsection (b) [Maine cite subsection (2)].

 
Example 1: Debtor is a general partnership whose chief
executive office is in Pennsylvania. Lender perfects a security
interest in Debtor's equipment by filing in Pennsylvania on May
15, 2002. On April 1, 2005, without Lender's knowledge, Debtor
moves its chief executive office to New Jersey. Lender's
security interest remains perfected for four months after the
move. See subsection (a)(2) [Maine cite subsection (1),
paragraph (b)].

 
Example 2: Debtor is a general partnership whose chief
executive office is in Pennsylvania. Lender perfects a security
interest in Debtor's equipment by filing in Pennsylvania on May
15, 2002. On April 1, 2007, without Lender's knowledge, Debtor
moves its chief executive office to New Jersey. Lender's
security interest remains perfected only through May 14, 2007,
when the effectiveness of
the filed financing statement lapses.


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