Section 9--316. Effect of Change in Governing Law.\n * (a) General rule: effect on perfection of change in governing law. A\nsecurity interest perfected pursuant to the law of the jurisdiction\ndesignated in Section 9--301(a) or 9--305(c) remains perfected until the\nearliest of:\n (1) the time perfection would have ceased under the law of that\n jurisdiction;\n (2) the expiration of four months after a change of the debtor's\n location to another jurisdiction; or\n (3) the expiration of one year after a transfer of collateral to\n a person that thereby becomes a debtor and is located in\n another jurisdiction.\n * NB Effective until June 3, 2026\n* (a) General rule: effect on perfection of change in governing law. A\nsecurity interest perfected pursuant to the law of the jurisdiction\ndesignated in Section 9--301(a), 9--305(c), 9-306A(d), or 9-306B(b)\nremains perfected until the earliest of:\n (1) the time perfection would have ceased under the law of that\n jurisdiction;\n (2) the expiration of four months after a change of the debtor's\n location to another jurisdiction; or\n (3) the expiration of one year after a transfer of collateral to\n a person that thereby becomes a debtor and is located in\n another jurisdiction.\n * NB Effective June 3, 2026\n (b) Security interest perfected or unperfected under law of new\njurisdiction. If a security interest described in subsection (a) becomes\nperfected under the law of the other jurisdiction before the earliest\ntime or event described in that subsection, it remains perfected\nthereafter. If the security interest does not become perfected under the\nlaw of the other jurisdiction before the earliest time or event, it\nbecomes unperfected and is deemed never to have been perfected as\nagainst a purchaser of the collateral for value.\n (c) Possessory security interest in collateral moved to new\njurisdiction. A possessory security interest in collateral, other than\ngoods covered by a certificate of title and as-extracted collateral\nconsisting of goods, remains continuously perfected if:\n (1) the collateral is located in one jurisdiction and subject to\n a security interest perfected under the law of that\n jurisdiction;\n (2) thereafter the collateral is brought into another\n jurisdiction; and\n (3) upon entry into the other jurisdiction, the security interest\n is perfected under the law of the other jurisdiction.\n (d) Goods covered by certificate of title from this state. Except as\notherwise provided in subsection (e), a security interest in goods\ncovered by a certificate of title which is perfected by any method under\nthe law of another jurisdiction when the goods become covered by a\ncertificate of title from this state remains perfected until the\nsecurity interest would have become unperfected under the law of the\nother jurisdiction had the goods not become so covered.\n (e) When subsection (d) security interest becomes unperfected against\npurchasers. A security interest described in subsection (d) becomes\nunperfected as against a purchaser of the goods for value and is deemed\nnever to have been perfected as against a purchaser of the goods for\nvalue if the applicable requirements for perfection under Section\n9--311(b) or 9--313 are not satisfied before the earlier of:\n (1) the time the security interest would have become unperfected\n under the law of the other jurisdiction had the goods not\n become covered by a certificate of title from this state; or\n (2) the expiration of four months after the goods had become so\n covered.\n * (f) Change in jurisdiction of bank, issuer, nominated person,\nsecurities intermediary, or commodity intermediary. A security interest\nin deposit accounts, letter-of-credit rights, or investment
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