N.Y. Uniform Commercial Code Law § 9-508: Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement

Section 9--508. Effectiveness of Financing Statement If New Debtor

Becomes Bound by Security Agreement.

(a) Financing statement naming original debtor. 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.

(b) Financing statement becoming seriously misleading. 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 (a) to be seriously misleading under Section 9--506:

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

interest in collateral acquired by the new debtor before, and

within four months after, the new debtor becomes bound under

Section 9--203(d); and

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

security interest in collateral acquired by the new debtor

more than four months after the new debtor becomes bound

under Section 9--203(d) unless an initial financing statement

providing the name of the new debtor is filed before the

expiration of that time.

(c) When section not applicable. This section does not apply to

collateral as to which a filed financing statement remains effective

against the new debtor under Section 9--507(a).