Montana Code 30-9A-508. Effectiveness of financing statement if new debtor becomes bound by security agreement
30-9A-508. Effectiveness of financing statement if new debtor becomes bound by security agreement. (1) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
Terms Used In Montana Code 30-9A-508
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Debtor: means :
(i)a person having a property interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(ii)a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(iii)a consignee. See Montana Code 30-9A-102
- Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Montana Code 30-9A-102
- New debtor: means a person that becomes bound as debtor under 30-9A-203(4) by a security agreement previously entered into by another person. See Montana Code 30-9A-102
- Security agreement: means an agreement that creates or provides for a security interest. See Montana Code 30-9A-102
(2)If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (1) to be seriously misleading under the standard set forth in 30-9A-506:
(a)the financing statement is effective to perfect a security interest in collateral acquired by the new debtor before and within 4 months after the new debtor becomes bound under 30-9A-203(4); and
(b)the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than 4 months after the new debtor becomes bound under 30-9A-203(4) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
(3)This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under 30-9A-507(1).