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Can you summarize MNST 336.9-507?
UNIFORM COMMERCIAL CODE > EFFECT OF CERTAIN EVENTS ON EFFECTIVENESS OF FINANCING STATEMENT.
Short Summary
This provision, part of the Minnesota Uniform Commercial Code, addresses the effectiveness of a financing statement in certain events. It states that a filed financing statement remains effective even if the collateral is sold, exchanged, leased, licensed, or otherwise disposed of, as long as a security interest or agricultural lien continues. Additionally, a financing statement is not rendered ineffective if the information provided in the financing statement becomes seriously misleading, unless otherwise provided in subsection (c) and section 336.9-508. If the name of the debtor provided in the financing statement becomes insufficient and seriously misleading, the financing statement is effective to perfect a security interest in collateral acquired by the debtor before or within four months after the financing statement becomes seriously misleading. However, it is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the financing statement becomes seriously misleading, unless an amendment to the financing statement that renders it not seriously misleading is filed within four months. This provision does not mention any specific penalties or exemptions.
Whom does it apply to?
Secured parties, debtors, and parties involved in the disposition of collateral
What does it govern?
Effect of certain events on effectiveness of financing statement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota