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<section article="gcl" article_name="Commercial Law" number="9-316" title_number="9" title_name="Secured Transactions" subtitle_number="3" subtitle_name="Perfection and Priority">
  <level label="a">
    <text>A security interest perfected pursuant to the law of the jurisdiction designated in § 9–301(1) or § 9–305(c) remains perfected until the earliest of:</text>
    <level label="1">
      <text>The time perfection would have ceased under the law of that jurisdiction;</text>
    </level>
    <level label="2">
      <text>The expiration of four months after a change of the debtor’s location to another jurisdiction; or</text>
    </level>
    <level label="3">
      <text>The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.</text>
    </level>
  </level>
  <level label="b">
    <text>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.</text>
  </level>
  <level label="c">
    <text>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:</text>
    <level label="1">
      <text>The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction;</text>
    </level>
    <level label="2">
      <text>Thereafter the collateral is brought into another jurisdiction; and</text>
    </level>
    <level label="3">
      <text>Upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.</text>
    </level>
  </level>
  <level label="d">
    <text>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.</text>
  </level>
  <level label="e">
    <text>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 § 9–311(b) or § 9–313 are not satisfied before the earlier of:</text>
    <level label="1">
      <text>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</text>
    </level>
    <level label="2">
      <text>The expiration of four months after the goods had become so covered.</text>
    </level>
  </level>
  <level label="f">
    <text>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:</text>
    <level label="1">
      <text>The time the security interest would have become unperfected under the law of that jurisdiction; or</text>
    </level>
    <level label="2">
      <text>The expiration of four months after a change of the applicable jurisdiction to another jurisdiction.</text>
    </level>
  </level>
  <level label="g">
    <text>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.</text>
  </level>
  <level label="h">
    <text>The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:</text>
    <level label="1">
      <text>A financing statement filed before the change pursuant to the law of the jurisdiction designated in § 9–301(1) 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;</text>
    </level>
    <level label="2">
      <text>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 § 9–301(1) or § 9–305(c) or the expiration of the four–month period, it remains perfected thereafter; and</text>
    </level>
    <level label="3">
      <text>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.</text>
    </level>
  </level>
  <level label="i">
    <text>If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in § 9–301(1) or § 9–305(c) and the new debtor is located in another jurisdiction, the following rules apply:</text>
    <level label="1">
      <text>The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under § 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;</text>
    </level>
    <level label="2">
      <text>A security interest perfected by the financing statement and 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 § 9–301(1) or § 9–305(c) or the expiration of the four–month period remains perfected thereafter; and</text>
    </level>
    <level label="3">
      <text>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.</text>
    </level>
  </level>
</section>
