Ch. 372                                    2003 LAWS OF MARYLAND

9-705.

(a)     If action, other than the filing of a financing statement, is taken before this
title takes effect and the action would have resulted in priority of a security interest
over the rights of a person that becomes a lien creditor had the security interest
become enforceable before this title takes effect, the action is effective to perfect a
security interest that attaches under this title within one year after this title takes
effect. An attached security interest becomes unperfected one year after this title
takes effect unless the security interest becomes a perfected security interest under
this title before the expiration of that period.

(b)     The filing of a financing statement before this title takes effect is effective
to perfect a security interest to the extent the filing would satisfy the applicable
requirements for perfection under this title.

(c)     This title does not render ineffective an effective financing statement that,
before this title takes effect, is filed and satisfies the applicable requirements for
perfection under the law of the jurisdiction governing perfection as provided in the
prior Code. However, except as otherwise provided in subsections [(d)] (E) and [(e)]
(F) and § 9-706, the financing statement ceases to be effective at the earlier of:

(1)     The time the financing statement would have ceased to be effective
under the law of the jurisdiction in which it is filed; or

(2)     June 30, 2006.

(D) SUBSECTION (C) APPLIES TO ALL FINANCING STATEMENTS FILED IN THIS
STATE BEFORE THIS TITLE TAKES EFFECT, INCLUDING THOSE FILED WITH RESPECT
TO SECURITY INTERESTS IN COLLATERAL GOVERNED AS TO PERFECTION BY THE
LOCAL LAW OF THIS .STATE UNDER THE PRIOR CODE AND THIS TITLE.

[(d)] (E) The filing of a continuation statement after this title takes effect does
not continue the effectiveness of the financing statement filed before this title takes
effect. However, upon the timely filing of a continuation statement after this title
takes effect and in accordance with the law of the jurisdiction governing perfection as
provided in Subtitle 3 of this title, the effectiveness of a financing statement filed in
the same office in that jurisdiction before this title takes effect continues for the
period provided by the law of that jurisdiction.

[(e)] (F) Subsection (c)(2) applies to a financing statement that, before this
title takes effect, is filed against a transmitting utility and satisfies the applicable
requirements for perfection under the law of the jurisdiction governing perfection as
provided in prior Code § 9-103, only to the extent that Subtitle 3 of this title provides
that the law of a jurisdiction other than the jurisdiction in which the financing
statement is filed governs perfection of a security interest in collateral covered by the
financing statement.

[(f)] (G) A financing statement that includes a financing statement filed
before this title takes effect and a continuation statement filed after this title takes
effect is effective only to the extent that it satisfies the requirements of Subtitle 5 of
this title for an initial financing statement.

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