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355.9-515 Duration and effectiveness of financing statement -- Effect of lapsed
financing statement.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Except as otherwise provided in subsections (2), (5), (6), and (7) of this section, a
filed financing statement is effective for a period of five (5) years after the date of
filing.
Except as otherwise provided in subsections (5), (6), and (7) of this section, an
initial financing statement filed in connection with a public-finance transaction or
manufactured-home transaction is effective for a period of thirty (30) years after the
date of filing if it indicates that it is filed in connection with a public-finance
transaction or manufactured-home transaction.
The effectiveness of a filed financing statement lapses on the expiration of the
period of its effectiveness unless before the lapse a continuation statement is filed
pursuant to subsection (4) of this section. Upon lapse, a financing statement ceases
to be effective and any security interest or agricultural lien that was perfected by the
financing statement becomes unperfected, unless the security interest is perfected
otherwise. If the security interest or agricultural lien becomes unperfected upon
lapse, it is deemed never to have been perfected as against a purchaser of the
collateral for value.
A continuation statement may be filed only within six (6) months before the
expiration of the five (5) year period specified in subsection (1) of this section or the
thirty (30) year period specified in subsection (2) of this section, whichever is
applicable.
Except as otherwise provided in KRS 355.9-510, upon timely filing of a
continuation statement, the effectiveness of the initial financing statement continues
for a period of five (5) years commencing on the day on which the financing
statement would have become ineffective in the absence of the filing. Upon the
expiration of the five (5) year period, the financing statement lapses in the same
manner as provided in subsection (3) of this section, unless, before the lapse,
another continuation statement is filed pursuant to subsection (4) of this section.
Succeeding continuation statements may be filed in the same manner to continue
the effectiveness of the initial financing statement.
If a debtor is a transmitting utility and a filed initial financing statement so
indicates, the financing statement is effective until a termination statement is filed.
A record of a mortgage that is effective as a financing statement filed as a fixture
filing under KRS 355.9-502(3) remains effective as a financing statement filed as a
fixture filing until the mortgage is released or satisfied of record or its effectiveness
otherwise terminates as to the real property.
Effective: July 1, 2013
History: Amended 2012 Ky. Acts ch. 132, sec. 83, effective July 1, 2013. -- Created
2000 Ky. Acts ch. 408, sec. 106, effective July 1, 2001.
Legislative Research Commission Note (3/14/2013). 2013 Ky. Acts ch. 10, secs. 2 and
3 provide that the statutes in Article 9 of the Uniform Commercial Code that were
amended or created in 2012 Ky. Acts ch. 132, secs. 60 to 99, are effective July 1,
2013. This statute was one of those sections. Since only the effective date of a prior
Act was altered, and not the text of the affected statutes, reference to 2013 Ky. Acts
ch. 10 does not appear in the history for this statute.
Legislative Research Commission Note (7/12/2012). In 2010, the National Conference
of Commissioners on Uniform State Laws and the American Law Institute proposed a
Uniform Act for adoption by the states that contained revisions to Article 9 of the
Uniform Commercial Code. The effective date for all proposed Article 9 revisions
was to be July 1, 2013. Those revisions were enacted in 2012 Ky. Acts Chapter 132,
Sections 60 to 99. Sections 60 to 90 contained the substantive Article 9 revisions,
and Sections 91 to 99 contained the transitional Article 9 revisions created to handle
secured transactions made prior to July 1, 2013. Section 91 of that Act (codified as
KRS 355.9-801) and Section 102 of that Act (a noncodified effective date provision)
both stated, "Sections 91 to 99 of this Act take effect July 1, 2013." The normal
effective date for legislation enacted at the 2012 Regular Session of the General
Assembly is July 12, 2012. In Opinion of the Attorney General 12-010, issued July 3,
2012, Section 91 (codified as KRS 355.9-801) was determined to have contained a
manifest clerical error, and should have instead read, "Sections 60 to 90 of this Act
take effect July 1, 2013," thereby making the substantive Article 9 revisions effective
on the same date as the transitional Article 9 provisions in conformity with the 2010
Uniform Act proposal and 2012 Ky. Acts Chapter 132, Section 102. This statute was
one of the substantive provisions of Article 9 contained in 2012 Ky. Acts Chapter
132, Sections 60 to 90.
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