N.Y. Uniform Commercial Code Law § 9-507: Effect of Certain Events on Effectiveness of Financing Statement

Section 9--507. Effect of Certain Events on Effectiveness of Financing

Statement.

(a) Disposition. A filed financing statement remains effective with

respect to collateral that is sold, exchanged, leased, licensed, or

otherwise disposed of and in which a security interest or agricultural

lien continues, even if the secured party knows of or consents to the

disposition.

(b) Information becoming seriously misleading. Except as otherwise

provided in subsection (c) and Section 9--508, a financing statement is

not rendered ineffective if, after the financing statement is filed, the

information provided in the financing statement becomes seriously

misleading under Section 9--506.

(c) Change in debtor's name. If the name that a filed financing

statement provides for a debtor becomes insufficient as the name of the

debtor under Section 9--503(a) so that the financing statement becomes

seriously misleading under Section 9--506:

(1) the financing statement is effective to perfect a security

interest in collateral acquired by the debtor before, or

within four months after, the filed financing statement

becomes seriously misleading; and

(2) the financing statement is not effective to perfect a

security interest in collateral acquired by the debtor more

than four months after the filed financing statement becomes

seriously misleading, unless an amendment to the financing

statement which renders the financing statement not seriously

misleading is filed within four months after the financing

statement became seriously misleading.