2007 California Commercial Code Chapter 7. Transition

CA Codes (com:9701-9709)

9701.  This division shall become operative on July 1, 2001.



9702.  (a) Except as otherwise provided in this chapter, this
division applies to a transaction or lien within its scope, even if
the transaction or lien was entered into or created before this
division takes effect.
   (b) Except as otherwise provided in subdivision (c) and in
Sections 9703 to 9709, inclusive, both of the following rules apply:

   (1) Transactions and liens that were not governed by former
Division 9, were validly entered into or created before July 1, 2001,
and would be subject to this act if they had been entered into or
created after July 1, 2001, and the rights, duties, and interests
flowing from those transactions and liens remain valid after July 1,
2001.
   (2) The transactions and liens may be terminated, completed,
consummated, and enforced as required or permitted by this division
or by the law that otherwise would apply if this division had not
taken effect.
   (c) This division does not affect an action, case, or proceeding
commenced before July 1, 2001.



9703.  (a) A security interest that is enforceable immediately
before July 1, 2001, and would have priority over the rights of a
person that becomes a lien creditor at that time is a perfected
security interest under this division if, on July 1, 2001, the
applicable requirements for enforceability and perfection under this
division are satisfied without further action.
   (b) Except as otherwise provided in Section 9705, if, immediately
before July 1, 2001, a security interest is enforceable and would
have priority over the rights of a person that becomes a lien
creditor at that time, but the applicable requirements for
enforceability or perfection under this division are not satisfied on
July 1, 2001, when all of the following rules apply with respect to
the security interest:
   (1) It is a perfected security interest until July 1, 2002.
   (2) It remains enforceable thereafter only if the security
interest becomes enforceable under Section 9203 before July 1, 2002.

   (3) It remains perfected thereafter only if the applicable
requirements for perfection under this division are satisfied before
July 1, 2002.



9704.  All of the following rules apply with respect to a security
interest that is enforceable immediately before July 1, 2001, but
which would be subordinate to the rights of a person that becomes a
lien creditor at that time:
   (1) It remains an enforceable security interest until July 1,
2002.
   (2) It remains enforceable thereafter if the security interest
becomes enforceable under Section 9203 on July 1, 2001, or on July 1,
2002.
   (3) It becomes perfected in either of the following ways:
   (A) Without further action, on July 1, 2001, if the applicable
requirements for perfection under this division are satisfied on or
before that time.
   (B) When the applicable requirements for perfection are satisfied
if the requirements are satisfied after that time.



9705.  (a) If action, other than the filing of a financing
statement, is taken before July 1, 2001, and the action would have
resulted in priority of a security interest over the rights of a
person that becomes a lien creditor had the security interest become
enforceable before July 1, 2001, the action is effective to perfect a
security interest that attaches under this division on or before
July 1, 2002.  An attached security interest becomes unperfected on
July 1, 2002, unless the security interest becomes a perfected
security interest under this division before that date.
   (b) The filing of a financing statement before July 1, 2001, is
effective to perfect a security interest to the extent the filing
would satisfy the applicable requirements for perfection under this
division.
   (c) This division does not render ineffective an effective
financing statement that, before July 1, 2001, is filed and satisfies
the applicable requirements for perfection under the law of the
jurisdiction governing perfection as provided in former Section 9103.
  However, except as otherwise provided in subdivisions (d) and (e)
and in Section 9706, the financing statement ceases to be effective
at the earlier of either of the following:
   (1) The time the financing statement would have ceased to be
effective under the law of the jurisdiction in which it is filed.
   (2) June 30, 2006.
   (d) The filing of a continuation statement after July 1, 2001,
does not continue the effectiveness of the financing statement filed
before July 1, 2001.  However, upon the timely filing of a
continuation statement after July 1, 2001, and in accordance with the
law of the jurisdiction governing perfection as provided in Chapter
3 (commencing with Section 9301), the effectiveness of a financing
statement filed in the same office in that jurisdiction before July
1, 2001, continues for the period provided by the law of that
jurisdiction.
   (e) Paragraph (2) of subdivision (c) applies to a financing
statement that, before July 1, 2001, is filed against a transmitting
utility and satisfies the applicable requirements for perfection
under the law of the jurisdiction governing perfection as provided in
former Section 9103 only to the extent that Chapter 3 (commencing
with Section 9301) provides that the law of a jurisdiction other than
the jurisdiction in which the financing statement is filed governs
perfection of a security interest in collateral covered by the
financing statement.
   (f) A financing statement that includes a financing statement
filed before July 1, 2001, and a continuation statement filed after
July 1, 2001, is effective only to the extent that it satisfies the
requirements of Chapter 5 (commencing with Section 9501) for an
initial financing statement.


9706.  (a) The filing of an initial financing statement in the
office specified in Section 9501 continues the effectiveness of a
financing statement filed before July 1, 2001, if all of the
following conditions are satisfied:
   (1) The filing of an initial financing statement in that office
would be effective to perfect a security interest under this
division.
   (2) The preeffective date financing statement was filed in an
office in another state or another office in this state.
   (3) The initial financing statement satisfies subdivision (c).
   (b) The filing of an initial financing statement under subdivision
(a) continues the effectiveness of the preeffective date financing
statement for the following periods:
   (1) If the initial financing statement is filed before July 1,
2001, for the period provided in former Section 9403 with respect to
a financing statement.
   (2) If the initial financing statement is filed after July 1,
2001, for the period provided in Section 9515 with respect to an
initial financing statement.
   (c) To be effective for purposes of subdivision (a), an initial
financing statement must do all of the following:
   (1) Satisfy the requirements of Chapter 5 (commencing with Section
9501) for an initial financing statement.
   (2) Identify the preeffective date financing statement by
indicating the office in which the financing statement was filed and
providing the dates of filing and file numbers, if any, of the
financing statement and of the most recent continuation statement
filed with respect to the financing statement.
   (3) Indicate that the preeffective date financing statement
remains effective.



9707.  (a) In this section, "pre-effective-date financing statement"
means a financing statement filed before the date that this section
becomes operative.
   (b) After the date this section becomes operative, a person may
add or delete collateral covered by, continue or terminate the
effectiveness of, or otherwise amend the information provided in, a
pre-effective-date financing statement only in accordance with the
law of the jurisdiction governing perfection as provided in Chapter 3
(commencing with Section 9301).  However, the effectiveness of a
pre-effective-date financing statement also may be terminated in
accordance with the law of the jurisdiction in which the financing
statement is filed.
   (c) Except as otherwise provided by subdivision (d), if the law of
this state governs perfection of a security interest, the
information in a pre-effective-date financing statement may be
amended after the date this section becomes operative only if any of
the following occur:
   (1) The pre-effective-date financing statement and an amendment
are filed in the office specified in Section 9501.
   (2) An amendment is filed in the office specified in Section 9501
concurrently with, or after the filing in that office of, an initial
financing statement that satisfies subdivision (c) of Section 9706.
   (3) An initial financing statement that provides the information
as amended and satisfies subdivision (c) of Section 9706 is filed in
the office specified in Section 9501.
   (d) If the law of this state governs perfection of a security
interest, the effectiveness of a pre-effective-date financing
statement may be continued only under subdivisions (d) and (f) of
Section 9705 or Section 9706.
   (e) Whether or not the law of this state governs the perfection of
a security interest, the effectiveness of a pre-effective-date
financing statement filed in this state may be terminated after the
date that this section becomes operative by filing a termination
statement in the office in which the pre-effective-date financing
statement is filed, unless an initial filing statement that satisfies
subdivision (c) of Section 9706 has been filed in the office
specified by the law of the jurisdiction governing perfection as
provided in Chapter 3 (commencing with Section 9301) as the office in
which to file a financing statement.



9708.  A person may file an initial financing statement or a
continuation statement under this chapter if both of the following
conditions are satisfied:
   (1) The secured party of record authorizes the filing.
   (2) The filing is necessary under this chapter to do either of the
following:
   (A) To continue the effectiveness of a financing statement filed
before July 1, 2001.
   (B) To perfect or continue the perfection of a security interest.



9709.  (a) This division determines priority of conflicting claims
to collateral.  However, if the relative priorities of the claims
were established before July 1, 2001, former Division 9 (commencing
with Section 9101) determines priority.
   (b) For purposes of subdivision (a) of Section 9322, the priority
of a security interest that becomes enforceable under Section 9203
dates from July 1, 2001, if the security interest is perfected under
this division by the filing of a financing statement before July 1,
2001, which would not have been effective to perfect the security
interest under former Division 9 (commencing with Section 9101).
This subdivision does not apply to conflicting security interests
each of which is perfected by the filing of such a financing
statement.