KRS 355.9-705: Effectiveness of action taken before effective date.

(1) If action, other than the filing of a financing statement, is taken before July 1, 2001,

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 enforce able

before July 1, 2001, the action is effective to perfect a security interest that attaches

under the revision of Article 9 in 2000 Ky. Acts ch. 408 within one (1) year after

July 1, 2001. An attached security interest becomes unperfected one (1) year a fter

July 1, 2001, unless the security interest becomes a perfected security interest under

the revision of Article 9 in 2000 Ky. Acts ch. 408 before the expiration of that

period.

(2) The filing of a financing statement before July 1, 2001, is effective t o perfect a

security interest to the extent the filing would satisfy the applicable requirements for

perfection under the revision of Article 9 in 2000 Ky. Acts ch. 408.

(3) The revision of Article 9 in 2000 Ky. Acts ch. 408 does not render ineffective an

effective financing statement that, before July 1, 2001, is filed and satisfies the

applicable requirements for perfection under the law of the jurisdiction governing

perfection as provided in the former KRS 355.9 -103, or law determining the place

of filing as provided in the former KRS 355.9 -401. However, except as otherwise

provided in subsections (4) and (5) of this section and KRS 355.9 -706, the

financing statement ceases to be effective at the earlier of:

(a) The time the financing statement would have ceased to be effective under the

law of the jurisdiction in which it is filed; or

(b) June 30, 2006.

(4) The filing of a continuation statement on or after July 1, 2001, does not continue the

effectiveness of the financing statement filed before July 1, 2 001. However, upon

the timely filing of a continuation statement after July 1, 2001, and in accordance

with the law of the jurisdiction governing perfection as provided in Part 3 of this

article, the effectiveness of a financing statement filed in the same office in that

jurisdiction before July 1, 2001, continues for the period provided by the law of that

jurisdiction.

(5) Subsection (3)(b) of this section applies to a financing statement that, before July 1,

2001, is filed against a transmitting utility a nd satisfies the applicable requirements

for perfection under the law of the jurisdiction governing perfection as provided in

the former KRS 355.9-103 only to the extent that Part 3 of this article provides that

the law of a jurisdiction other than the jur isdiction in which the financing statement

is filed governs perfection of a security interest in collateral covered by the

financing statement.

(6) A financing statement that includes a financing statement filed before July 1, 2001,

and a continuation stat ement filed on or after July 1, 2001, is effective only to the

extent that it satisfies the requirements of Part 5 of this article for an initial

financing statement.