CHAPTER 3. Transitional Provisions for Divisions 9 and 12 [17301 - 17306]
( Chapter 3 added by Stats. 2023, Ch. 210, Sec. 91. )
(a) Except as provided in this chapter, Division 9 (commencing with Section 9101), as amended by the act adding this division, and Division 12 apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before the effective date of the act adding this division.
(b) Except as provided in subdivision (c), Section 17302 to 17306, inclusive, the following rules apply:
(1) A transaction, lien, or interest in property that was validly entered into, created, or transferred before the effective date of the act adding this division
and was not governed by this code, but would be subject to Division 9 (commencing with Section 9101), as amended by the act adding this division, or Division 12 if it had been entered into, created, or transferred on or after the effective date of the act adding this division, including the rights, duties, and interests flowing from the transaction, lien, or interest, remains valid on and after the effective date of the act adding this division.
(2) The transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by the act adding this division or by the law that would apply if the act adding this division had not taken effect.
(c) The act adding this division does not affect an action, case, or proceeding commenced before the
effective date of the act adding this division.
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)
(a) A security interest that is enforceable and perfected immediately before the effective date of the act adding this division is a perfected security interest under the act adding this division if, on the effective date of the act adding this division, the requirements for enforceability and perfection under the act adding this division are satisfied without further action.
(b) If a security interest is enforceable and perfected immediately before the effective date of the act adding this division, but the requirements for enforceability or perfection under the act adding this division are not satisfied on the effective date of the act adding this division, the
following rules apply to the security interest:
(1) The security interest is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before the effective date of the act adding this division or the adjustment date.
(2) The security interest remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under Section 9203, as amended by the act adding this division, before the adjustment date.
(3) The security interest remains perfected thereafter only if the requirements for perfection under the act adding this division are satisfied before the time specified in paragraph (1).
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)
A security interest that is enforceable immediately before the effective date of the act adding this division but is unperfected at that time:
(a) remains an enforceable security interest until the adjustment date;
(b) remains enforceable thereafter if the security interest becomes enforceable under Section 9203, as amended by the act adding this division, on the effective date of the act adding this division or before the adjustment date; and
(c) becomes perfected:
(1) without further
action, on the effective date of the act adding this division if the requirements for perfection under the act adding this division are satisfied before or at that time; or
(2) when the requirements for perfection are satisfied if the requirements are satisfied after that time.
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)
(a) If action, other than the filing of a financing statement, is taken before the effective date of the act adding this division and the action would have resulted in perfection of the security interest had the security interest become enforceable before the effective date of the act adding this division, the action is effective to perfect a security interest that attaches under the act adding this division before the adjustment date. An attached security interest becomes unperfected on the adjustment date unless the security interest becomes a perfected security interest under the act adding this division before the adjustment date.
(b) The filing of a financing statement
before the effective date of the act adding this division is effective to perfect a security interest on the effective date of the act adding this division to the extent the filing would satisfy the requirements for perfection under the act adding this division.
(c) The taking of an action before the effective date of the act adding this division is sufficient for the enforceability of a security interest on the effective date of the act adding this division if the action would satisfy the requirements for enforceability under the act adding this division.
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)
(a) Subject to subdivisions (b) and (c), the act adding this division determines the priority of conflicting claims to collateral.
(b) Subject to subdivision (c), if the priorities of claims to collateral were established before the effective date of the act adding this division, Division 9 (commencing with Section 9101) as in effect before the effective date of the act adding this division determines priority.
(c) On the adjustment date, to the extent the priorities determined by Division 9 (commencing with Section 9101), as amended by the act adding this division, modify the priorities established before
the effective date of the act adding this division, the priorities of
claims to Division 12 property and electronic money established before the effective date of the act adding this division cease to apply.
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)
(a) Subject to subdivisions (b) and (c), Division 12 determines the priority of conflicting claims to Division 12 property when the priority rules of Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply.
(b) Subject to subdivision (c), when the priority rules of Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply and the priorities of claims to Division 12 property were established before the effective date of the act adding this division, law other than Division 12 determines priority.
(c) When the priority rules of
Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply, to the extent the priorities determined by the act adding this division modify the priorities established before the effective date of the act adding this division, the priorities of claims to Division 12 property established before the effective date of the act adding this division cease to apply on the adjustment date.
(Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)