2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - Perfection and Priority › Sub Part 2 - Perfection › 9-316 - Effect of Change in Governing Law.

Section 9--316. Effect of Change in Governing Law.
(a) General  rule:  effect on perfection of change in governing law. A
security interest perfected pursuant to  the  law  of  the  jurisdiction
designated in Section 9--301(a) or 9--305(c) remains perfected until the
earliest of:
(1) the  time  perfection would have ceased under the law of that
jurisdiction;
(2) the expiration of four months after a change of the  debtor's
location to another jurisdiction; or
(3) the  expiration of one year after a transfer of collateral to
a person that thereby becomes a  debtor  and  is  located  in
another jurisdiction.
(b) Security  interest  perfected  or  unperfected  under  law  of new
jurisdiction. If a security interest described in subsection (a) 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.
(c) Possessory  security  interest  in   collateral   moved   to   new
jurisdiction.  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:
(1) the  collateral is located in one jurisdiction and subject to
a  security  interest  perfected  under  the  law   of   that
jurisdiction;
(2) thereafter   the   collateral   is   brought   into   another
jurisdiction; and
(3) upon entry into the other jurisdiction, the security interest
is perfected under the law of the other jurisdiction.
(d) Goods covered by certificate of title from this state.  Except  as
otherwise  provided  in  subsection  (e),  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.
(e) When  subsection (d) security interest becomes unperfected against
purchasers. A security interest  described  in  subsection  (d)  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 Section
9--311(b) or 9--313 are not satisfied before the earlier of:
(1) 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
(2) the expiration of four months after the goods had  become  so
covered.
(f) Change   in   jurisdiction  of  bank,  issuer,  nominated  person,
securities intermediary, or commodity intermediary. A security  interest
in  deposit  accounts,  letter-of-credit  rights, or investment property
which is perfected  under  the  law  of  the  bank's  jurisdiction,  the
issuer's jurisdiction, a nominated person's jurisdiction, the securities
intermediary's    jurisdiction,    or   the   commodity   intermediary's
jurisdiction, as applicable, remains perfected until the earlier of:
(1) the time the security interest would have become  unperfected
under the law of that jurisdiction; or
(2) the   expiration  of  four  months  after  a  change  of  the
applicable jurisdiction to another jurisdiction.
(g) Subsection  (f)  security  interest perfected or unperfected under
law of new jurisdiction. If a security interest described in  subsection
(f) 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.
(h)  Effect  on  filed financing statement of change in governing law.
The following rules apply to collateral to  which  a  security  interest
attaches  within  four  months  after the debtor changes its location to
another jurisdiction:
(1) A financing statement filed before the change pursuant to the
law of the jurisdiction designated in  Section  9--301(a)  or
9--305(c)  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
had the debtor not changed its location.
(2) If a security interest perfected  by  a  financing  statement
that is effective under paragraph (1) 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 Section
9--301(a) or 9--305(c) or the expiration  of  the  four-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.
(i) Effect of change in governing law  on  financing  statement  filed
against  original  debtor.  If  a financing statement naming an original
debtor is filed pursuant to the law of the  jurisdiction  designated  in
Section  9--301(a) or 9--305(c) and the new debtor is located in another
jurisdiction, the following rules apply:
(1) The financing statement is effective to  perfect  a  security
interest  in  collateral  in  which  the  new  debtor  has or
acquires rights before or within four months  after  the  new
debtor   becomes   bound  under  Section  9--203(d),  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.
(2) A security  interest  that  is  perfected  by  the  financing
statement  and  which  becomes perfected under the law of the
other jurisdiction before the earlier of  the  expiration  of
the  four  month  period  or the time the financing statement
would  have  become  ineffective  under  the   law   of   the
jurisdiction  designated  in  Section  9--301(a) or 9--305(c)
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.