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Can you summarize NVRS 104.9508?
Uniform Commercial CodeOriginal Articles > Effectiveness of financing statement if new debtor becomes bound by security agreement.
Short Summary
This legal document, part of the Nevada Revised Statutes, specifically addresses the effectiveness of a financing statement when a new debtor becomes bound by a security agreement. According to the document, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral even if a new debtor has or acquires rights to the collateral. However, if the difference between the names of the original debtor and the new debtor causes the financing statement to be seriously misleading, certain conditions apply. The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within 4 months after, the new debtor becomes bound under subsection 4 of NRS 104.9203. However, it is not effective to perfect a security interest in collateral acquired by the new debtor more than 4 months after becoming bound, unless an initial financing statement providing the name of the new debtor is filed within that time. It is important to note that this section does not apply to collateral for which a filed financing statement remains effective against the new debtor under subsection 1 of NRS 104.9507.
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 subsection 1 of NRS 104.9507
What are the Penalties?
No penalties mentioned
Jurisdiction
Nevada