Section 8–601. Savings Clause; Effect on Prior Perfected Security

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Interest.

(a) As used in this Part, the term "this Act" means that chapter of the laws of 1997 which repealed former Article 8 of this code, added this article to this code, and made conforming amendments to provisions of other articles of this code.

(b) This Act does not affect an action or proceeding commenced before this Act takes effect. An oral contract or a modification of contract entered into before the date this Act takes effect does not become enforceable by reason of operation of Section 8–113.

(c) If a security interest in a security is perfected at the date this Act takes effect, and the action by which the security interest was perfected would suffice to perfect a security interest under this Act, no further action is required to continue perfection. If a security interest in a security is perfected at the date this Act takes effect but the action by which the security interest was perfected would not suffice to perfect a security interest under this Act, the security interest remains perfected for a period of 12 months after the effective date of this Act and continues perfected thereafter if appropriate action to perfect under this Act is taken within that period. If a security interest is perfected at the date this Act takes effect and the security interest can be perfected by filing under this Act, a financing statement signed by the secured party instead of by the debtor may be filed within that period to continue perfection or thereafter to perfect.