| | | that, during the early years of this Article's effectiveness, it | | may be necessary to search the files not only in the jurisdiction | | whose law governs perfection under this Article but also (if | | different) in the jurisdiction(s) whose law governed perfection | | under former Article 9. To limit this burden, subsection (c) | | [Maine cite subsection (3)] provides that a financing statement | | filed in the jurisdiction determined by former Section 9-103 | | becomes ineffective at the earlier of the time it would become | | ineffective under the law of that jurisdiction or June 30, 2006. | | The June 30, 2006, limitation addresses some nonuniform versions | | of former Article 9 that extended the effectiveness of a | | financing statement beyond five years. Note that a financing | | statement filed before the effective date may remain effective | | beyond June 30, 2006, if subsection (d) [Maine cite subsection | | (4)] (concerning continuation statements) or (e) [Maine cite | | subsection (5)] (concerning transmitting utilities) or Section 9- | | 706 [Maine cite section 9-1706] (concerning initial financing | | statements that operate to continue pre-effective-date financing | | statements) so provides. |
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| | | Subsection (c) [Maine cite subsection (3)] is an exception to | | Section 9-703(b) [Maine cite section 9-1703, subsection (2)]. | | Under the general rule in Section 9-703(b) [Maine cite section 9- | | 1703, subsection (2)], a security interest that is enforceable | | and perfected on the effective date of this Article is a | | perfected security interest for one year after this Article takes | | effect, even if the security interest is not enforceable under | | this Article and the applicable requirements for perfection under | | this Article have not been met. However, in some cases | | subsection (c) [Maine cite subsection (3)] may shorten the one- | | year period of perfection; in others, if the security interest is | | enforceable under Section 9-203 [Maine cite section 9-1203], it | | may extend the period of perfection. A financing statement that | | remains effective under subsection (c) [Maine cite subsection | | (3)] may be amended (but generally may not be continued) after | | this Article takes effect by filing an amendment in the office | | where the financing statement was filed. |
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| | | Example 1: On July 3, 1996, D, a State X corporation, creates | | a security interest in certain manufacturing equipment located in | | State Y. On July 6, 1996, SP perfects a security interest in the | | equipment under former Article 9 by filing in the office of the | | State Y Secretary of State. See former Section 9-103(1)(b). | | This Article takes effect in States X and Y on July 1, 2001. | | Under Section 9-705(c) [Maine cite section 9-1705, subsection | | (3)], the financing statement remains effective for the first | | five days of July, 2001, after which it lapses. See former | | Section 9-403. Had SP continued the effectiveness of the | | financing statement by filing a continuation statement in State Y | | under former Article 9 before | | July 1, 2001, the financing |
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