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UCC Lapse Date Changes
September 15, 2004
In January 2005, the Tennessee Secretary of State will adjust certain pre-effective UCC financing statement lapse dates to June 30, 2006.
Under laws in effect prior to the enactment of UCC Revised Article 9, Tennessee UCC financing statements could state an initial lapse (maturity date) from 5 to 20 years from the date of filing. However, in accordance with the transition provisions of UCC Revised Article 9, any active UCC financing statement filed prior to July 1, 2001, with a stated initial lapse (maturity) date greater than June 30, 2006, and whose debtor is not identified on the face of the financing statement as a transmitting utility, will have its lapse date of record adjusted to June 30, 2006.
If appropriate, a continuation statement may be filed for such a UCC financing statement during the sixth month period ending on June 30, 2006.
This adjustment will NOT affect any UCC financing statement filed prior to July 1, 2001, with a stated initial lapse (maturity) date of record less than July 1, 2006. In addition, this adjustment will NOT affect any UCC financing statement filed prior to July 1, 2001 that lapsed or was terminated prior to July 1, 2001.
The adjustment to applicable UCC financing statements will be made in January 2005. As an additional reminder, a notice will be mailed in January 2005 to secured parties of record for the affected financing statements informing them of the change.
For more information, please refer to:
Tennessee Attorney General Opinion No. 04-102 (.pdf)