Nevada § 104.9316 - Continued perfection of security interest following change in governing law

§ 104.9316. Continued perfection of security interest following change in governing law

1. A security interest perfected pursuant to the law of the jurisdiction designated

in subsection 1 of NRS 104.9301, subsection 3 of NRS 104.9305, subsection 4 of NRS 104.930601 or subsection 2 of NRS 104.930602 remains perfected until the earliest of: (a) The time perfection would have ceased under the law of that jurisdiction; (b) The expiration of 4 months after a change of the debtor's location to another

jurisdiction; or (c) The expiration of 1 year after a transfer of collateral to a person that thereby

becomes a debtor and is located in another jurisdiction. 2. If a security interest described in subsection 1 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. 3. 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: (a) The collateral is located in one jurisdiction and subject to a security interest

perfected under the law of that jurisdiction; (b) Thereafter the collateral is brought into another jurisdiction; and (c) Upon entry into the other jurisdiction, the security interest is perfected under

the law of the other jurisdiction. 4. Except as otherwise provided in subsection 5, 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. 5. A security interest described in subsection 4 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

subsection 2 of NRS 104.9311 or under NRS 104.9313 are not satisfied before the earlier of: (a) 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 (b) The expiration of 4 months after the goods had become so covered. 6. A security interest in chattel paper, controllable accounts, controllable electronic

records, controllable payment intangibles, deposit accounts, letter-of-credit rights

or investment property which is perfected under the law of the chattel paper's jurisdiction,

the controllable electronic record's jurisdiction, 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: (a) The time the security interest would have become unperfected under the law of

that jurisdiction; or (b) The expiration of 4 months after a change of the applicable jurisdiction to another

jurisdiction. 7. If a security interest described in subsection 6 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. 8. The following rules apply to collateral to which a security interest attaches within

4 months after the debtor changes its location to another jurisdiction: (a) A financing statement filed before the change pursuant to the law of the jurisdiction

designated in subsection 1 of NRS 104.9301 or subsection 3 of NRS 104.9305 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 if the

debtor had not changed its location. (b) If a security interest perfected by a financing statement that is effective under

paragraph (a) 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 subsection 1 of NRS 104.9301 or subsection 3 of NRS 104.9305 or the expiration of the 4-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. 9. If a financing statement naming an original debtor is filed pursuant to the law

of the jurisdiction designated in subsection 1 of NRS 104.9301 or subsection 3 of NRS 104.9305 and the new debtor is located in another jurisdiction, the following rules apply: (a) The financing statement is effective to perfect a security interest in collateral

acquired by the new debtor before, and within 4 months after, the new debtor becomes

bound under subsection 4 of NRS 104.9203 , 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. (b) A security interest perfected by the financing statement 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 subsection 1 of NRS 104.9301 or subsection 3 of NRS 104.9305 or the expiration of the 4-month period 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.