Alabama § 7-9A-508 - Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement.
Full text of Alabama Code of Alabama § 7-9A-508 — Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement., with citation guidance and answers to common questions.
§ 7-9A-508. Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement.
(a) Financing statement naming original debtor. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under Section 7-9A-506:
(1) 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 Section 7-9A-203(d); and
(2) the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 7-9A-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
(c) When section not applicable. This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under Section 7-9A-507(a).
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 7-9A-508
What does Code of Alabama § 7-9A-508 cover?
Section 7-9A-508 ("Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 7-9A-508?
A common citation format is "Code of Alabama § 7-9A-508" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 7-9A-508 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.