Texas Business & Commerce Code

§ 9.316 — EFFECT OF CHANGE IN GOVERNING LAW

BC § 9.316Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. C. PERFECTION AND PRIORITY

Statute text

(a)A security interest perfected pursuant to the law of the jurisdiction designated in Section 9.301(1) or 9.305(c) remains perfected until the earliest of:

(1)the time perfection would have ceased under the law of that jurisdiction;

(2)the expiration of four months after a change of the debtor's location to another jurisdiction; or

(3)the expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.

(b)If a security interest described in Subsection (a) becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

(c)A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:

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Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 67 (S.B. 782), Sec. 5, eff. July 1, 2013. Acts 2011, 82nd Leg., R.S., Ch. 67 (S.B. 782), Sec. 6, eff. July 1, 2013.