(a) Disposition.— A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.
(b) Information becoming seriously misleading.— Except as otherwise provided in subsection (c) and § 2328 of this title, a financing statement is not rendered ineffective if after the financing statement is filed the information provided in the financing statement becomes seriously misleading under § 2326 of this title.
(c) Change in debtor's name.— If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under § 2323(a) of this title so that the financing statement becomes seriously misleading under § 2326 of this title:
(1) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four (4) months after, the filed financing statement becomes seriously misleading, and
(2) the financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four (4) months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four (4) months after the event.
History —Sept. 19, 1996, No. 241, added as § 9-507 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.