KRS 355.9-515: Duration and effectiveness of financing statement -- Effect of lapsed

financing statement.

(1) 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) ye ars after the date of

filing.

(2) 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.

(3) 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.

(4) 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.

(5) 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 continuatio n 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.

(6) If a debtor is a transmitting utility and a filed init ial financing statement so

indicates, the financing statement is effective until a termination statement is filed.

(7) 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.