Okla. Stat. tit. 12A, § 1-9-703
Security Interest Perfected Before Effective Date
Effective Jul 1, 2001Laws 2000, SB 1519, c. 371, § 137, eff. July 1, 2001. Oklahoma Code Comment Revised section 9-703 provides that enforceability and perfection of a security interest (in the sense it is good against a lien creditor) that is valid under old Article 9 automatically carries over if what was done satisfies revised Article 9. If not, then there is a one year grace period to comply with revised Article 9. For example, perfection of a security interest in a letter of credit right under current law is by possession of the credit, but under revised Article 9 control is required, such as by consent to the assignment by the issuer or nominated person (revised section 9-107). Another example might involve a pre-effective date security agreement in a consumer transaction that covers "all securities accounts." That security interest is properly perfected as the collateral description is adequate under former Article 9. See former section 9-115(3). But this description is insufficient under revised Article 9. See section 9-108(e)(2). Unless the debtor authenticates a new security agreement describing the collateral other than by "type" within the one-year period following the effective date, the security interest becomes unenforceable at the end of that period. Sections 9-702 and 9-703 state the overall general rule, but are subject to section 9-705. See also Oklahoma Comment to revised section 9-702.
- (a) A security interest that is enforceable immediately before this act takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this act if, when this act takes effect, the applicable requirements for enforceability and perfection under this act are satisfied without further action.
- (b) Except as otherwise provided in Section 1-9-705 of this title, if, immediately before this act takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this act are not satisfied when this act takes effect, the security interest:
- (1) is a perfected security interest for one (1) year after this act takes effect;
- (2) remains enforceable thereafter only if the security interest becomes enforceable under Section 1-9-203 of this title before the year expires; and
- (3) remains perfected thereafter only if the applicable requirements for perfection under this act are satisfied before the year expires.
Laws 2000, SB 1519, c. 371, § 137, eff. July 1, 2001.
Oklahoma Code Comment
Another example might involve a pre-effective date security agreement in a consumer transaction that covers "all securities accounts." That security interest is properly perfected as the collateral description is adequate under former Article 9. See former section 9-115(3). But this description is insufficient under revised Article 9. See section 9-108(e)(2). Unless the debtor authenticates a new security agreement describing the collateral other than by "type" within the one-year period following the effective date, the security interest becomes unenforceable at the end of that period.
Sections 9-702 and 9-703 state the overall general rule, but are subject to section 9-705.
See also Oklahoma Comment to revised section 9-702.