KRS 355.9-508: Effectiveness of financing statement if new debtor becomes bound by

security agreement.

(1) Except as otherwise provided in this section, a filed financing statement naming an

original debtor is effective to perfect a security interest in collateral in which a new

debtor has or acquires rights to the extent that the financing statement would have

been effective had the original debtor acquired rights in the collateral.

(2) If the difference between the name of the original debtor and that of the new debtor

causes a filed financing statement that is effective under subsection (1) of this

section to be seriously misleading under KRS 355.9-506:

(a) The financing statement is effective to perfect a security interest in collateral

acquired by the new debto r before, and within four (4) months after, the new

debtor becomes bound under KRS 355.9-203(4); and

(b) The financing statement is not effective to perfect a security interest in

collateral acquired by the new debtor more than four (4) months after the ne w

debtor becomes bound under KRS 355.9 -203(4) unless an initial financing

statement providing the name of the new debtor is filed before the expiration

of that time.

(3) This section does not apply to collateral as to which a filed financing statement

remains effective against the new debtor under KRS 355.9-507(1).