§ 9704 Transitional Security Interests

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. (Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)