Continuation Statement - Explained
What is a Continuation Statement?
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What is a Continuation Statement?
A continuation statement refers to modification or alteration made to a UCC-1 (financing statement) which makes it effective beyond its normal expiration date. The effect of a continuation statement is that a lien placed by a lender on the collateral of a borrower is extended beyond the original expiration date identified in the UCC-1 financing statement. Continuation statements are otherwise called UCC-3 continuation statements.
As stipulated in section 9 of Uniform Commercial Code, the continuation statement must be filed six months before the UCC-1 expires. A timely filing allows the extension of a financing statement five years after its filing date.
Lenders who do not file at this time are denied any extension or amendment to the expiration date of the financing statement.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
Related Topics
- Perfection of a security interest?
- Perfecting a security interest in personal property?
- UCC-1 Statement
- Security interest in real property (land)?
- Register of Deeds
- Automatic Perfection of a security interest?
- Purchase Money Security Interest (PMSI) in consumer goods?
- Purchase Money Grace Period for a PMSI in non-consumer goods?
- Continue perfection of a PMSI in non-consumer goods?
- Temporary Automatic Perfection in Proceeds from the sale of goods?
- How is a security interest created in Assignment of Accounts Receivable and Contract Rights?
- Perfect a security interest by Possession of the collateral?
- Perfect a security interest by Control of collateral?
- Perfect a security interest by Filing a Financing Statement?
- Authorization is required to file a financing statement?
- Where to file a financing statement?
- Defeasance
- Continuation Statement