(a) A security interest that is enforceable and perfected immediately before the effective date of the act adding this division is a perfected security interest under the act adding this division if, on the effective date of the act adding this division, the requirements for enforceability and perfection under the act adding this division are satisfied without further action.

(b) If a security interest is enforceable and perfected immediately before the effective date of the act adding this division, but the requirements for enforceability or perfection under the act adding this division are not satisfied on the effective date of the act adding this division, the following rules apply to the security interest:

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(1) The security interest is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before the effective date of the act adding this division or the adjustment date.

(2) The security interest remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under Section 9203, as amended by the act adding this division, before the adjustment date.

(3) The security interest remains perfected thereafter only if the requirements for perfection under the act adding this division are satisfied before the time specified in paragraph (1).

(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)