(a) Pre-effective date transaction, lien, or interest. Except as provided in this part, Article 9A as amended by this act and Article 12 apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before the effective date of this act.
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Terms Used In Alabama Code 7-12A-301

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • property: includes both real and personal property. See Alabama Code 1-1-1
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(b) Continuing validity. Except as provided in subsection (c) and Sections 7-12A-302 through 7-12A-306:

(1) a transaction, lien, or interest in property that was validly entered into, created, or transferred before the effective date of this act and was not governed by the Uniform Commercial Code, but would be subject to Article 9A as amended by this act or Article 12 if it had been entered into, created, or transferred on or after the effective date of this act, including the rights, duties, and interests flowing from the transaction, lien, or interest, remains valid on and after the effective date of this act; and
(2) the transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by this act or by the law that would apply if this act had not taken effect.
(c) Pre-effective date proceeding. This act does not affect an action, case, or proceeding commenced before the effective date of this act.
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