Post filing changes

Question 1

Debtor name change

Answer 1

If the name change causes the filed financing statement to become seriously misleading, the secured party has a 4 month window to discover the change and file an amendment to financing statement listing the new name

If SP fails to amend, collateral acquired after the period expires and is not covered but the previous collateral is

Question 2

Debtor moves out of state

Answer 2

A perfected security interest will remain perfected for 4 months after the debtor moves out the state unless the financing statement lapses earlier
The filed financing statement will cover collateral purchased within the 4 month window after the move
The secured party must file in the new state within that 4 month window to remain continuously perfected

Question 3

Collateral moves out of state

Answer 3

If the debtor still owns the collateral, no re-filling is necessary
If the collateral is transferred to a new debtor who lives out of state, that SP has 1 year to file a financing statement listing the new debtor
If the SP fails to file a fainting statement within either the 4 month window of 1 year period
The SI ceases to be perfected in the collateral. And
Perfection is lost prospectively and against another SP or purchaser for value, the interest is deemed never to have been perfected.

Question 4

Secured party perfected by possession gives collateral back to the debtor

Answer 4

The SP is only perfected so long as it has actual physical possession of the property
Limited exception
Temporary automatic perfection
If a SI is perfected by possession in an instrument, negotiable document, certificated security, or goods stored with a bailee the SP can give the collateral back to the debtor for limited purposes
To sell it
To exchange it
To enforce the debtor’s rights in the collateral
The SP is perfected for 20 days
The SP need to their file a financing statement