[Editorial Note: The General Session Laws designate the transition
provisions as Article 3, Sections 3.01 - 3.09. The National Conference
of Commissioners Official Text designates the transition provisions as
Part 7 of the Revised Article 9. Texas practitioners should be alert to
this change in the name and numbering of the transition provisions as
the references to "Parts," "Articles," and differing section numbers can
be confusing. In addition to this variation in numbering, it
should be noted that a new section 9-707 was inserted in the Official
Text since the 1999 enactment in Texas and caused a
renumbering of Official Text sections 9-707 and 9-708 to sections
9-708 and 9-709 respectively. Whether Texas enacts this new
section must await the 2001 legislative session. In
the meantime, the Texas transition rules are not in complete
conformity with the Official Text.]
ARTICLE 3. EFFECTIVE DATE; TRANSITION; EMERGENCY Sec. 3.03. SECURITY INTEREST PERFECTED BEFORE
EFFECTIVE DATE. [Comment]
(a) A security interest that is enforceable
immediately before the effective date of this Act and would have
priority over the rights of a person that becomes a lien creditor at
that time is a perfected security interest under Chapter 9, Business &
Commerce Code, as amended by this Act, if, on the effective date of this
Act, the applicable requirements for enforceability and perfection under
Chapter 9, Business & Commerce Code, as amended by this Act, are
satisfied without further action. (b) Except as otherwise provided in Section
3.05 of this article, if, immediately before this Act takes effect, 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 Chapter
9, Business & Commerce Code, as amended by this Act, are not satisfied
when this Act takes effect, the security interest: (1) is a perfected security interest until
July 1, 2002; (2) remains enforceable after June 30, 2002,
only if the security interest becomes enforceable under Section 9.203, Business & Commerce Code, as amended
by this Act, before July 1, 2002; and (3) remains perfected after June 30, 2002,
only if the applicable requirements for perfection under Chapter 9,
Business & Commerce Code, as amended by this Act, are satisfied before
July 1, 2002. Back to Contents -- Back to Top Sec. 3.04. SECURITY INTEREST UNPERFECTED BEFORE
EFFECTIVE DATE. [Comment]
A security interest that is enforceable immediately before this Act
takes effect but that would be subordinate to the rights of a person
that becomes a lien creditor at that time: (1) remains an enforceable security interest
until July 1, 2002; (2) remains enforceable after June 30, 2002, if
the security interest becomes enforceable under Section 9.203, Business & Commerce Code, as amended
by this Act, before July 1, 2002; and (A) without further action, when this Act
takes effect, if the applicable requirements for perfection under
Chapter 9, Business & Commerce Code, as amended by this Act, are
satisfied before or at that time; or (B) when the applicable requirements for
perfection are satisfied if the requirements are satisfied after this
Act takes effect. Back to Contents -- Back to Top Sec. 3.05. EFFECTIVENESS OF ACTION TAKEN BEFORE
EFFECTIVE DATE. [Comment]
(a) If action, other than the filing of a
financing statement, is taken before this Act takes effect 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 this Act takes effect, the action is
effective to perfect a security interest that attaches under Chapter 9,
Business & Commerce Code, as amended by this Act, within one year after
the effective date of this Act. An attached security interest becomes
unperfected on July 1, 2002, unless the security interest becomes a
perfected security interest under Chapter 9, Business & Commerce Code,
as amended by this Act, before that date. (b) The filing of a financing statement before
the effective date of this Act is effective to perfect a security
interest to the extent the filing would satisfy the applicable
requirements for perfection under Chapter 9, Business & Commerce Code,
as amended by this Act. (c) This Act does not render ineffective an
effective financing statement that, before the effective date of this
Act, is filed and satisfies the applicable requirements for perfection
under the law of the jurisdiction governing perfection as provided in
Section 9.103, Business & Commerce Code,
as it existed immediately before the effective date of this Act.
However, except as otherwise provided in Subsections (d) and (e) of this
section and Section 3.06 of this article, the financing statement ceases
to be effective at the earlier of: (1) the time the financing statement would
have ceased to be effective under the law of the jurisdiction in which
it is filed; or (d) The filing of a continuation statement
after this Act takes effect does not continue the effectiveness of the
financing statement filed before this Act takes effect. However, upon
the timely filing of a continuation statement after this Act takes
effect and in accordance with the law of the jurisdiction governing
perfection as provided in Subchapter C, Chapter 9, Business & Commerce
Code, as amended by this Act, the effectiveness of a financing statement
filed in the same office in that jurisdiction before this Act takes
effect continues for the period provided by the law of that
jurisdiction. (e) Subsection (c)(2) of this section applies
to a financing statement that, before this Act takes effect, is filed
against a transmitting utility and satisfies the applicable requirements
for perfection under the law of the jurisdiction governing perfection as
provided in Section 9.103, as it existed
immediately before the effective date of this Act, only to the extent
that Subchapter C, Chapter 9, Business & Commerce Code, as amended by
this Act, provides that the law of a jurisdiction other than
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 this Act takes effect and a
continuation statement filed after this Act takes effect is effective
only to the extent that it satisfies the requirements of Subchapter E,
Chapter 9, Business & Commerce Code, as amended by this Act, for an
initial financing statement. Back to Contents -- Back to Top Sec. 3.06. WHEN INITIAL FINANCING STATEMENT
SUFFICES TO CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. [Comment]
(a) The filing of an initial financing
statement in the office specified in Section
9.501, Business & Commerce Code, as amended by this Act, continues
the effectiveness of a financing statement filed before this Act takes
effect if: (1) the filing of an initial financing
statement in that office would be effective to perfect a security
interest under Chapter 9, Business & Commerce Code, as amended by this
Act; (2) the pre-effective-date financing
statement was filed in an office in another state or another office in
this state; and (3) the initial financing statement
satisfies Subsection (c) of this section. (b) The filing of an initial financing
statement under Subsection (a) of this section continues the
effectiveness of the pre-effective-date financing statement: (1) if the initial financing statement is
filed before this Act takes effect, for the period provided in Section
9.403, Business & Commerce Code, as it
existed immediately before the effective date of this Act, with respect
to a financing statement; and (2) if the initial financing statement is
filed after this Act takes effect, for the period provided in Section 9.515, Business & Commerce Code, as amended
by this Act, with respect to an initial financing statement. (c) To be effective for purposes of Subsection
(a) of this section, an initial financing statement must: (1) satisfy the requirements of Subchapter
E, Chapter 9, Business & Commerce Code, as amended by this Act, for an
initial financing statement; (2) identify the pre-effective-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; and (3) indicate that the pre-effective-date
financing statement remains effective. Back to Contents -- Back to Top END OF TRANSITION PROVISIONS
Back to Top
Sec. 3.04. Security Interest Unperfected Before
Effective Date.
Sec. 3.05. Effectiveness of Action Taken Before
Effective Date.
Sec. 3.06. When Initial Financing Statement
Suffices to Continue Effectiveness of Financing
Statement.