Secured Transactions Question

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desertlaw
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Joined: Thu Oct 22, 2009 3:03 pm

Secured Transactions Question

Postby desertlaw » Sat Dec 10, 2011 7:52 pm

Do you have to file a new financing statement for new security agreements?

I know that an SP can continue to just keep making advances on the original FS and still be perfected. But what if they want to change the Security Agreement or make a new one? Can the original FS still cover them?

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Ty Webb
Posts: 517
Joined: Mon Nov 23, 2009 10:47 pm

Re: Secured Transactions Question

Postby Ty Webb » Sat Dec 10, 2011 8:00 pm

desertlaw wrote:Do you have to file a new financing statement for new security agreements?

I know that an SP can continue to just keep making advances on the original FS and still be perfected. But what if they want to change the Security Agreement or make a new one? Can the original FS still cover them?


It depends on what the change to the security agreement is. If the security agreement changes the type of collateral, then a new financing statement would be required. If the old FS still describes the collateral appropriately, then probably not.




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