Pennsylvania Act 2006-64 — COMMERCIAL CODE (13 PA.C.S.) - EFFECTIVENESS OF ACTIONS RELATED TO SECURED TRANSACTIONS AND CONTINUED EFFECTIVENESS OF FINANCING STATEMENTS

Act text

COMMERCIAL CODE (13 PA.C.S.) - EFFECTIVENESS OF ACTIONS RELATED TO
 SECURED TRANSACTIONS AND CONTINUED EFFECTIVENESS OF FINANCING STATEMENTS
                  Act of Jun. 30, 2006, P.L. 290, No. 64              Cl. 13
                             Session of 2006
                               No. 2006-64

     HB 2542

                                  AN ACT

     Amending Title 13 (Commercial Code) of the Pennsylvania
        Consolidated Statutes, further providing, in secured
        transactions, for effectiveness of actions prior to amendment
        and for continued effectiveness of financing statements.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Sections 9705(b) and (d) and 9706(a) of Title 13
     of the Pennsylvania Consolidated Statutes are amended to read:
      § 9705.  Effectiveness of action taken before effective date.
        * * *
        (b)  Pre-effective-date filing.--The filing of a financing
     statement before [Revised Division 9 takes effect] July 1, 2001,
     is effective to perfect a security interest to the extent the
     filing would satisfy the applicable requirements for perfection
     under Revised Division 9, and the effectiveness of such a
     financing statement shall not be affected by subsection (c).
        * * *
        (d)  Continuation statement.--[The]
            (1)  Except as set forth in paragraph (2), the filing of
        a continuation statement after Revised Division 9 takes
        effect does not continue the effectiveness of the financing
        statement filed before Revised Division 9 takes effect.
        [However]
            (2)  Notwithstanding paragraph (1), upon the timely
        filing of a continuation statement after Revised Division 9
        takes effect and in accordance with the law of the
        jurisdiction governing perfection as provided in Chapter 93
        of Revised Division 9 (relating to perfection and priority),
        the effectiveness of a financing statement filed in the same
        office in that jurisdiction before Revised Division 9 takes
        effect continues for the period provided by the law of that
        jurisdiction. Filing of a continuation statement shall be
        timely under this paragraph if the filing occurs before the
        financing statement ceases to be effective but not before the
        earlier of:
                (i)  December 30, 2005; or
                (ii)  six months before the financing statement
            ceases to be effective.
        * * *
      § 9706.  When initial financing statement suffices to continue
                effectiveness of financing statement.
        (a)  Initial financing statement in lieu of continuation
     statement.--The filing of an initial financing statement in the
     office specified in section 9501 of Revised Division 9 (relating
     to filing office) continues the effectiveness of a financing
     statement filed before Revised Division 9 takes effect if:
            (1)  the filing of an initial financing statement in that
        office would be effective to perfect a security interest
        under Revised Division 9;
            (2)  the pre-effective-date financing statement was filed
        in an office in another state or another office in this
        Commonwealth; [and]
            (3)  the initial financing statement satisfies subsection
        (c)[.]; and
            (4)  with respect to a pre-effective-date financing
        statement which, but for section 9705(c)(2) (relating to
        effectiveness of action taken before effective date), would
        cease to be effective after June 30, 2006, the initial
        financing statement is filed:
                (i)  after December 29, 2005; and
                (ii)  before July 1, 2006.
        * * *
        Section 2.  Nothing in the amendment of 13 Pa.C.S. § 9705(b)
     or (d) or 9706(a) shall render ineffective a continuation
     statement that was filed prior to the effective date of this
     section.
        Section 3.  This act shall take effect immediately.

     APPROVED--The 30th day of June, A. D. 2006.

     EDWARD G. RENDELL