Nevada Code § 104.9316

Continued perfection of security interest following change in governing law
Open in Lexace · Ask the AI about this section
1. A security interest perfected pursuant
to the law of the jurisdiction designated in subsection 1 of NRS 104.9301 , subsection 3 of NRS 104.9305 , subsection 4 of NRS 104.930601 or subsection 2 of NRS 104.930602 remains perfected until
the earliest of:
(a) The time perfection would have ceased under
the law of that jurisdiction;
(b) The expiration of 4 months after a change of
the debtors location to another jurisdiction; or
(c) The expiration of 1 year after a transfer of
collateral to a person that thereby becomes a debtor and is located in another
jurisdiction.
2. If a security interest described in
subsection 1 becomes perfected under the law of the other jurisdiction before
the earliest time or event described in that subsection, it remains perfected
thereafter. If the security interest does not become perfected under the law of
the other jurisdiction before the earliest time or event, it becomes
unperfected and is deemed never to have been perfected as against a purchaser
of the collateral for value.
3. A possessory security interest in
collateral, other than goods covered by a certificate of title and as-extracted
collateral consisting of goods, remains continuously perfected if:
(a) The collateral is located in one jurisdiction
and subject to a security interest perfected under the law of that
jurisdiction;
(b) Thereafter the collateral is brought into
another jurisdiction; and
(c) Upon entry into the other jurisdiction, the
security interest is perfected under the law of the other jurisdiction.
4. Except as otherwise provided in
subsection 5, a security interest in goods covered by a certificate of title
which is perfected by any method under the law of another jurisdiction when the
goods become covered by a certificate of title from this State remains
perfected until the security interest would have become unperfected under the
law of the other jurisdiction had the goods not become so covered.
5. A security interest described in
subsection 4 becomes unperfected as against a purchaser of the goods for value
and is deemed never to have been perfected as against a purchaser of the goods
for value if the applicable requirements for perfection under subsection 2 of NRS 104.9311 or under NRS 104.9313 are not satisfied before the
earlier of:
(a) The time the security interest would have
become unperfected under the law of the other jurisdiction had the goods not
become covered by a certificate of title from this State; or
(b) The expiration of 4 months after the goods
had become so covered.
6. A security interest in chattel paper,
controllable accounts, controllable electronic records, controllable payment
intangibles, deposit accounts, letter-of-credit rights or investment property
which is perfected under the law of the chattel papers jurisdiction, the
controllable electronic records jurisdiction, the banks jurisdiction, the
issuers jurisdiction, a nominated persons jurisdiction, the securities
intermediarys jurisdiction or the commodity intermediarys jurisdiction, as
applicable, remains perfected until the earlier of:
(a) The time the security interest would have
become unperfected under the law of that jurisdiction; or
(b) The expiration of 4 months after a change of
the applicable jurisdiction to another jurisdiction.
7. If a security interest described in
subsection 6 becomes perfected under the law of the other jurisdiction before
the earlier of the time or the end of the period described in that subsection,
it remains perfected thereafter. If the security interest does not become
perfected under the law of the other jurisdiction before the earlier of that
time or the end of that period, it becomes unperfected and is deemed never to
have been perfected as against a purchaser of the collateral for value.
8. The following rules apply to collateral
to which a security interest attaches within 4 months after the debtor changes
its location to another jurisdiction:
(a) A financing statement filed before the change
pursuant to the law of the jurisdiction designated in subsection 1 of NRS 104.9301 or subsection 3 of NRS 104.9305 is effective to perfect a
security interest in the collateral if the financing statement would have been
effective to perfect a security interest in the collateral if the debtor had
not changed its location.
(b) If a security interest perfected by a
financing statement that is effective under paragraph (a) becomes perfected
under the law of the other jurisdiction before the earlier of the time the
financing statement would have become ineffective under the law of the
jurisdiction designated in subsection 1 of NRS
104.9301 or subsection 3 of NRS
104.9305 or the expiration of the 4-month period, it remains perfected
thereafter. If the security interest does not become perfected under the law of
the other jurisdiction before the earlier time or event, it becomes unperfected
and is deemed never to have been perfected as against a purchaser of the
collateral for value.
9. If a financing statement naming an
original debtor is filed pursuant to the law of the jurisdiction designated in
subsection 1 of NRS 104.9301 or
subsection 3 of NRS 104.9305 and the
new debtor is located in another jurisdiction, the following rules apply:
(a) 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 , if the financing statement
would have been effective to perfect a security interest in the collateral had
the collateral been acquired by the original debtor.
(b) A security interest perfected by the
financing statement which becomes perfected under the law of the other
jurisdiction before the earlier of the time the financing statement would have
become ineffective under the law of the jurisdiction designated in subsection 1
of NRS 104.9301 or subsection 3 of NRS 104.9305 or the expiration of the
4-month period remains perfected thereafter. A security interest that is
perfected by the financing statement but which does not become perfected under
the law of the other jurisdiction before the earlier time or event becomes
unperfected and is deemed never to have been perfected as against a purchaser
of the collateral for value.

‹ Prev All Nevada sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.