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Can you summarize MNST 336.9-508?
UNIFORM COMMERCIAL CODE > EFFECTIVENESS OF FINANCING STATEMENT IF NEW DEBTOR BECOMES BOUND BY SECURITY AGREEMENT.
Short Summary
This section of the Minnesota Statutes, specifically under the Uniform Commercial Code, governs the effectiveness of a financing statement if a new debtor becomes bound by a security agreement. It states that 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 if the original debtor acquired rights in the collateral. However, if the difference between the name of the original debtor and the new debtor causes the financing statement to be seriously misleading, it may affect the perfection of the security interest. The section also specifies that it does not apply to collateral for which a filed financing statement remains effective against the new debtor under a different section. No specific penalties are mentioned in this section.
Whom does it apply to?
Creditors and debtors involved in security agreements and financing statements
What does it govern?
Effectiveness of financing statement if new debtor becomes bound by security agreement
What are exemptions?
This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under section 336.9-507 (a).
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota