82R14208 ATP-D
 
  By: Deshotel H.B. No. 1617
 
  Substitute the following for H.B. No. 1617:
 
  By:  Quintanilla C.S.H.B. No. 1617
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to uniform law on secured transactions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 9.102, Business & Commerce Code, is
  amended by amending Subdivisions (7), (10), (50), and (71) and
  adding Subdivision (68-a) to read as follows:
               (7)  "Authenticate" means:
                     (A)  to sign; or
                     (B)  [to execute or otherwise adopt a symbol, or
  encrypt or similarly process a record in whole or in part,] with
  [the] present intent [of the authenticating person] to [identify
  the person and] adopt or accept a record, to attach to or logically
  associate with the record an electronic sound, symbol, or process.
               (10)  "Certificate of title" means a certificate of
  title with respect to which a statute provides for the security
  interest in question to be indicated on the certificate as a
  condition or result of the security interest's obtaining priority
  over the rights of a lien creditor with respect to the collateral.
  The term includes another record maintained as an alternative to a
  certificate of title by the governmental unit that issues
  certificates of title if a statute permits the security interest in
  question to be indicated on the record as a condition or result of
  the security interest's obtaining priority over the rights of a
  lien creditor with respect to the collateral.
               (50)  "Jurisdiction of organization," with respect to a
  registered organization, means the jurisdiction under whose law the
  organization is formed or organized.
               (68-a) "Public organic record" means a record that is
  available to the public for inspection and that is:
                     (A)  a record consisting of the record initially
  filed with or issued by a state or the United States to form or
  organize an organization and any record filed with or issued by the
  state or the United States that amends or restates the initial
  record;
                     (B)  an organic record of a business trust
  consisting of the record initially filed with a state and any record
  filed with the state that amends or restates the initial record, if
  a statute of the state governing business trusts requires that the
  record be filed with the state; or
                     (C)  a record consisting of legislation enacted by
  the legislature of a state or the Congress of the United States that
  forms or organizes an organization, any record amending the
  legislation, and any record filed with or issued by the state or the
  United States that amends or restates the name of the
  organization.  
               (71)  "Registered organization" means an organization
  formed or organized solely under the law of a single state or the
  United States by the filing of a public organic record with, the
  issuance of a public organic record by, or the enactment of
  legislation by [and as to which] the state or the United States
  [must maintain a public record showing the organization to have
  been organized]. The term includes a business trust that is formed
  or organized under the law of a single state if a statute of the
  state governing business trusts requires that the business trust's
  organic record be filed with the state.
         SECTION 2.  Section 9.105, Business & Commerce Code, is
  amended to read as follows:
         Sec. 9.105.  CONTROL OF ELECTRONIC CHATTEL PAPER. (a) A
  secured party has control of electronic chattel paper if a system
  employed for evidencing the transfer of interests in the chattel
  paper reliably establishes the secured party as the person to which
  the chattel paper was assigned.
         (b)  A system satisfies Subsection (a), and a secured party
  has control of electronic chattel paper, if the record or records
  comprising the chattel paper are created, stored, and assigned in
  such a manner that:
               (1)  a single authoritative copy of the record or
  records exists that is unique, identifiable, and, except as
  otherwise provided in Subdivisions (4), (5), and (6), unalterable;
               (2)  the authoritative copy identifies the secured
  party as the assignee of the record or records;
               (3)  the authoritative copy is communicated to and
  maintained by the secured party or its designated custodian;
               (4)  copies or amendments [revisions] that add or
  change an identified assignee of the authoritative copy can be made
  only with the consent [participation] of the secured party;
               (5)  each copy of the authoritative copy and any copy of
  a copy is readily identifiable as a copy that is not the
  authoritative copy; and
               (6)  any amendment [revision] of the authoritative copy
  is readily identifiable as [an] authorized or unauthorized
  [revision].
         SECTION 3.  Section 9.307(f), Business & Commerce Code, is
  amended to read as follows:
         (f)  Except as otherwise provided in Subsection (i), a
  registered organization that is organized under the law of the
  United States and a branch or agency of a bank that is not organized
  under the law of the United States or a state are located:
               (1)  in the state that the law of the United States
  designates, if the law designates a state of location;
               (2)  in the state that the registered organization,
  branch, or agency designates, if the law of the United States
  authorizes the registered organization, branch, or agency to
  designate its state of location, including by designating its main
  office, home office, or other comparable office; or
               (3)  in the District of Columbia, if neither
  Subdivision (1) nor Subdivision (2) applies.
         SECTION 4.  Section 9.311(a), Business & Commerce Code, is
  amended to read as follows:
         (a)  Except as otherwise provided in Subsection (d), the
  filing of a financing statement is not necessary or effective to
  perfect a security interest in property subject to:
               (1)  a statute, regulation, or treaty of the United
  States whose requirements for a security interest's obtaining
  priority over the rights of a lien creditor with respect to the
  property preempt Section 9.310(a);
               (2)  the following statutes of this state:  a
  certificate of title statute of this state or rules adopted under
  the statute to the extent the statute or rules provide for a
  security interest to be indicated on the certificate of title as a
  condition or result of perfection or such alternative to notation
  as may be prescribed by those statutes or rules of this state
  [Chapter 501, Transportation Code,     relating to the certificates
  of title for motor vehicles;     Subchapter B-1, Chapter 31, Parks and
  Wildlife Code,     relating to the certificates of title for vessels
  and outboard motors;     Chapter 1201, Occupations Code, relating to
  the documents of title for manufactured homes]; or Chapter 261,
  relating to utility security instruments; or
               (3)  a [certificate of title] statute of another
  jurisdiction that provides for a security interest to be indicated
  on a [the] certificate of title as a condition or result of the
  security interest's obtaining priority over the rights of a lien
  creditor with respect to the property.
         SECTION 5.  The heading to Section 9.316, Business &
  Commerce Code, is amended to read as follows:
         Sec. 9.316.  EFFECT OF [CONTINUING PERFECTION OF SECURITY
  INTEREST FOLLOWING] CHANGE IN GOVERNING LAW.
         SECTION 6.  Section 9.316, Business & Commerce Code, is
  amended by adding Subsections (h) and (i) to read as follows:
         (h)  The following rules apply to collateral to which a
  security interest attaches within four months after the debtor
  changes its location to another jurisdiction:
               (1)  A financing statement filed before the change of
  the debtor's location pursuant to the law of the jurisdiction
  designated in Section 9.301(1) or 9.305(c) is effective to perfect
  a security interest in the collateral if the financing statement
  would have been effective to perfect a security interest in the
  collateral if the debtor had not changed its location.
               (2)  If a security interest that is perfected by a
  financing statement that is effective under Subdivision (1) becomes
  perfected under the law of the other jurisdiction before the
  earlier of the time the financing statement would have become
  ineffective under the law of the jurisdiction designated in Section
  9.301(1) or 9.305(c) or the expiration of the four-month period, it
  remains perfected thereafter. If the security interest does not
  become perfected under the law of the other jurisdiction before the
  earlier time or event, it becomes unperfected and is deemed never to
  have been perfected as against a purchaser of the collateral for
  value.
         (i)  If a financing statement naming an original debtor is
  filed pursuant to the law of the jurisdiction designated in Section
  9.301(1) or 9.305(c) and the new debtor is located in another
  jurisdiction, the following rules apply:
               (1)  The financing statement is effective to perfect a
  security interest in collateral in which the new debtor has or
  acquires rights before or within four months after the new debtor
  becomes bound under Section 9.203(d), if the financing statement
  would have been effective to perfect a security interest in the
  collateral if the collateral had been acquired by the original
  debtor.
               (2)  A security interest that is perfected by the
  financing statement and that becomes perfected under the law of the
  other jurisdiction before the earlier of the expiration of the
  four-month period or the time the financing statement would have
  become ineffective under the law of the jurisdiction designated in
  Section 9.301(1) or 9.305(c) remains perfected thereafter. A
  security interest that is perfected by the financing statement but
  that does not become perfected under the law of the other
  jurisdiction before the earlier time or event becomes unperfected
  and is deemed never to have been perfected as against a purchaser of
  the collateral for value.
         SECTION 7.  Sections 9.317(b) and (d), Business & Commerce
  Code, are amended to read as follows:
         (b)  Except as otherwise provided in Subsection (e), a buyer,
  other than a secured party, of tangible chattel paper, tangible
  documents, goods, instruments, or a certificated security
  [certificate] takes free of a security interest or agricultural
  lien if the buyer gives value and receives delivery of the
  collateral without knowledge of the security interest or
  agricultural lien and before it is perfected.
         (d)  A licensee of a general intangible or a buyer, other
  than a secured party, of collateral [accounts, electronic chattel
  paper, electronic documents, general intangibles, or investment
  property] other than tangible chattel paper, tangible documents,
  goods, instruments, or a certificated security takes free of a
  security interest if the licensee or buyer gives value without
  knowledge of the security interest and before it is perfected.
         SECTION 8.  Section 9.326, Business & Commerce Code, is
  amended to read as follows:
         Sec. 9.326.  PRIORITY OF SECURITY INTERESTS CREATED BY NEW
  DEBTOR. (a) Subject to Subsection (b), a security interest that is
  created by a new debtor in collateral in which the new debtor has or
  acquires rights and [that is] perfected by a filed financing
  statement that would be ineffective to perfect the security
  interest but for the application of Section 9.508 or of Sections
  9.508 and 9.316(i)(1) [is effective solely under Section 9.508 in
  collateral in which a new debtor has or acquires rights] is
  subordinate to a security interest in the same collateral that is
  perfected other than by such a filed financing statement [that is
  effective solely under Section 9.508].
         (b)  The other provisions of this subchapter determine the
  priority among conflicting security interests in the same
  collateral perfected by filed financing statements described in
  Subsection (a) [that are effective solely under Section 9.508].
  However, if the security agreements to which a new debtor became
  bound as debtor were not entered into by the same original debtor,
  the conflicting security interests rank according to priority in
  time of the new debtor's having become bound.
         SECTION 9.  Section 9.406, Business & Commerce Code, is
  amended by amending Subsections (e) and (f) and adding Subsection
  (k) to read as follows:
         (e)  Subsection (d) does not apply to the sale of a payment
  intangible or promissory note, other than a sale pursuant to a
  disposition under Section 9.610 or an acceptance of collateral
  under Section 9.620.
         (f)  Except as otherwise provided in Sections 2A.303 and
  9.407, and subject to Subsections (h), [and] (i), and (k), a rule of
  law, statute, or regulation that prohibits, restricts, or requires
  the consent of a government, governmental body or official, or
  account debtor to the assignment or transfer of, or creation of a
  security interest in, an account or chattel paper is ineffective to
  the extent that the rule of law, statute, or regulation:
               (1)  prohibits, restricts, or requires the consent of
  the government, governmental body or official, or account debtor to
  the assignment or transfer of, or the creation, attachment,
  perfection, or enforcement of a security interest in, the account
  or chattel paper; or
               (2)  provides that the assignment or transfer or the
  creation, attachment, perfection, or enforcement of the security
  interest may give rise to a default, breach, right of recoupment,
  claim, defense, termination, right of termination, or remedy under
  the account or chattel paper.
         (k)  An assignment under this section is subject to Section
  466.410, Government Code.
         SECTION 10.  Section 9.408(b), Business & Commerce Code, is
  amended to read as follows:
         (b)  Subsection (a) applies to a security interest in a
  payment intangible or promissory note only if the security interest
  arises out of a sale of the payment intangible or promissory note,
  other than a sale pursuant to a disposition under Section 9.610 or
  an acceptance of collateral under Section 9.620.
         SECTION 11.  Section 9.502(c), Business & Commerce Code, is
  amended to read as follows:
         (c)  A record of a mortgage is effective, from the date of
  recording, as a financing statement filed as a fixture filing or as
  a financing statement covering as-extracted collateral or timber to
  be cut only if:
               (1)  the record indicates the goods or accounts that it
  covers;
               (2)  the goods are or are to become fixtures related to
  the real property described in the record or the collateral is
  related to the real property described in the record and is
  as-extracted collateral or timber to be cut;
               (3)  the record satisfies the requirements for a
  financing statement in this section, but:
                     (A)  the record need not indicate [other than an
  indication] that it is to be filed in the real property records; and
                     (B)  the record sufficiently provides the name of
  a debtor who is an individual if it provides the individual name of
  the debtor or the surname and first personal name of the debtor,
  even if the debtor is an individual to whom Section 9.503(a)(4) or
  (5) applies; and
               (4)  the record is duly recorded.
         SECTION 12.  Section 9.503, Business & Commerce Code, is
  amended by amending Subsections (a) and (b) and adding Subsections
  (f), (g), and (h) to read as follows:
         (a)  A financing statement sufficiently provides the name of
  the debtor:
               (1)  except as otherwise provided in Subdivision (3),
  if the debtor is a registered organization or the collateral is held
  in a trust that is a registered organization, only if the financing
  statement provides the name that is stated to be the registered
  organization's name [of the debtor indicated] on the public organic
  record most recently filed with or issued or enacted by [debtor's
  formation documents that are filed of public record in] the
  registered organization's [debtor's] jurisdiction of organization
  [to create the registered organization and] that purports to state,
  amend, or restate the registered organization's [show the debtor to
  have been organized, including any amendments to those documents
  for the express purpose of amending the debtor's] name;
               (2)  subject to Subsection (f), if the collateral is
  being administered by the personal representative of a decedent
  [debtor is a decedent's estate], only if the financing statement
  provides, as the name of the debtor, the name of the decedent and,
  in a separate part of the financing statement, indicates that the
  collateral is being administered by a personal representative
  [debtor is an estate];
               (3)  if the collateral [debtor] is held in a trust that
  is not a registered organization [or a trustee acting with respect
  to property held in trust], only if the financing statement:
                     (A)  provides, as the name of the debtor:
                           (i)  if the organic record of the trust
  specifies a name [the name specified] for the trust, the name so [in
  its organic documents or, if no name is] specified; or
                           (ii)  if the organic record of the trust does
  not specify a name for the trust, [provides] the name of the settlor
  or testator [and additional information sufficient to distinguish
  the debtor from other trusts having one or more of the same
  settlors]; and
                     (B)  in a separate part of the financing
  statement:
                           (i)  if the name is provided in accordance
  with Paragraph (A)(i), indicates [, in the debtor's name or
  otherwise,] that the collateral [debtor] is held in a trust; or
                           (ii)  if the name is provided in accordance
  with Paragraph (A)(ii), provides additional information sufficient
  to distinguish the trust from other trusts having one or more of the
  same settlors or the same testator and indicates that the
  collateral is held in a trust, unless the additional information so
  indicates [or is a trustee acting with respect to property held in
  trust];
               (4)  subject to Subsection (g),  if the debtor is an
  individual to whom this state has issued a driver's license that has
  not expired or to whom the agency of this state that issues driver's
  licenses has issued, in lieu of a driver's license, a personal
  identification card that has not expired, only [,] if the financing
  statement provides the [individual's] name of the individual that
  is indicated [shown] on the [individual's] driver's license or
  personal identification card [certificate issued by the
  individual's state of residence];
               (5)  if the debtor is an individual to whom Subdivision
  (4) does not apply, only if the financing statement provides any of
  the following:
                     (A)  the individual name of the debtor;
                     (B)  the name of the individual that is indicated
  on a consular identification card that has been issued to the
  individual and has not expired; or
                     (C)  the individual's surname and first personal
  name; and
               (6) [(5)]  in other cases:
                     (A)  if the debtor has a name, only if it [the
  financing statement] provides the [individual or] organizational
  name of the debtor; and
                     (B)  if the debtor does not have a name, only if it
  [the financing statement] provides the names of the partners,
  members, associates, or other persons comprising the debtor, in a
  manner that each name provided would be sufficient if the person
  named were the debtor.
         (b)  A financing statement that provides the name of the
  debtor in accordance with Subsection (a) is not rendered
  ineffective by the absence of:
               (1)  a trade name or other name of the debtor; or
               (2)  unless required under Subsection (a)(6)(B)
  [(a)(4)(B)], names of partners, members, associates, or other
  persons comprising the debtor.
         (f)  The name of the decedent indicated on the order
  appointing the personal representative of the decedent issued by
  the court having jurisdiction over the collateral is sufficient as
  the "name of the decedent" under Subsection (a)(2).
         (g)  If this state has issued to an individual more than one
  driver's license or, if none, more than one identification card, of
  a kind described in Subsection (a)(4), the driver's license or
  identification card, as applicable, that was issued most recently
  is the one to which Subsection (a)(4) refers.
         (h)  The "name of the settlor or testator" means:
               (1)  if the settlor is a registered organization, the
  name of the registered organization indicated on the public organic
  record filed with or issued or enacted by the registered
  organization's jurisdiction of organization; or
               (2)  in other cases, the name of the settlor or testator
  indicated in the trust's organic record.
         SECTION 13.  Section 9.507(c), Business & Commerce Code, is
  amended to read as follows:
         (c)  If the [a debtor so changes its] name that a filed
  financing statement provides for a debtor becomes insufficient as
  the name of the debtor under Section 9.503(a) so that the financing
  statement becomes seriously misleading under Section 9.506:
               (1)  the financing statement is effective to perfect a
  security interest in collateral acquired by the debtor before, or
  within four months after, the filed financing statement becomes
  seriously misleading [change]; and
               (2)  the financing statement is not effective to
  perfect a security interest in collateral acquired by the debtor
  more than four months after the filed financing statement becomes
  seriously misleading [change], unless an amendment to the financing
  statement that renders the financing statement not seriously
  misleading is filed within four months after that event [the
  change].
         SECTION 14.  Section 9.515(f), Business & Commerce Code, is
  amended to read as follows:
         (f)  If a debtor is a transmitting utility and a filed
  initial financing statement so indicates, the financing statement
  is effective until a termination statement is filed.
         SECTION 15.  Section 9.516(b), Business & Commerce Code, is
  amended to read as follows:
         (b)  Filing does not occur with respect to a record that a
  filing office refuses to accept because:
               (1)  the record is not communicated by a method or
  medium of communication authorized by the filing office;
               (2)  an amount equal to or greater than the applicable
  filing fee is not tendered;
               (3)  the filing office is unable to index the record
  because:
                     (A)  in the case of an initial financing
  statement, the record does not provide a name for the debtor;
                     (B)  in the case of an amendment or information
  [correction] statement, the record:
                           (i)  does not identify the initial financing
  statement as required by Section 9.512 or 9.518, as applicable; or
                           (ii)  identifies an initial financing
  statement whose effectiveness has lapsed under Section 9.515;
                     (C)  in the case of an initial financing statement
  that provides the name of a debtor identified as an individual or an
  amendment that provides a name of a debtor identified as an
  individual that was not previously provided in the financing
  statement to which the record relates, the record does not identify
  the debtor's surname [last name]; or
                     (D)  in the case of a record filed or recorded in
  the filing office described in Section 9.501(a)(1), the record does
  not provide the name of the debtor and a sufficient description of
  the real property to which it relates;
               (4)  in the case of an initial financing statement or an
  amendment that adds a secured party of record, the record does not
  provide a name and mailing address for the secured party of record;
               (5)  in the case of an initial financing statement or an
  amendment that provides a name of a debtor that was not previously
  provided in the financing statement to which the amendment relates,
  the record does not:
                     (A)  provide a mailing address for the debtor;
                     (B)  indicate whether the debtor is an individual
  or an organization; or
                     (C)  if the financing statement indicates that the
  debtor is an organization, provide:
                           (i)  a type of organization for the debtor;
                           (ii)  a jurisdiction of organization for the
  debtor; or
                           (iii)  an organizational identification
  number for the debtor or indicate that the debtor has none;
               (6)  in the case of an assignment reflected in an
  initial financing statement under Section 9.514(a) or an amendment
  filed under Section 9.514(b), the record does not provide a name and
  mailing address for the assignee;
               (7)  in the case of a continuation statement, the
  record is not filed within the six-month period prescribed by
  Section 9.515(d); or
               (8)  the record is not on an industry standard form,
  including a national standard form or a form approved by the
  International Association of Commercial Administrators, adopted by
  rule by the secretary of state.
         SECTION 16.  Section 9.518, Business & Commerce Code, is
  amended to read as follows:
         Sec. 9.518.  CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED
  RECORD. (a) Any person named as a debtor or a secured party may
  file an information [a correction] statement with respect to a
  record if the person believes that the record is inaccurate or was
  wrongfully filed.
         (b)  An information [A correction] statement must:
               (1)  identify the record to which it relates by the file
  number assigned to the initial financing statement to which the
  record relates;
               (2)  indicate that it is an information [a correction]
  statement; and
               (3)  provide the basis for the person's belief that the
  record is inaccurate and indicate the manner in which the person
  believes the record should be amended to cure any inaccuracy or
  provide the basis for the person's belief that the record was
  wrongfully filed.
         (c)  The filing of an information [a correction] statement
  does not affect the effectiveness of an initial financing statement
  or other filed record.
         (d)  Filing of an information [a correction] statement is not
  effective as an amendment to a filed financing statement and is not
  sufficient to effect a change in the manner in which the filing
  office has indexed a financing statement or information contained
  in a financing statement.
         SECTION 17.  Section 9.607(b), Business & Commerce Code, is
  amended to read as follows:
         (b)  If necessary to enable a secured party to exercise under
  Subsection (a)(3) the right of a debtor to enforce a mortgage
  nonjudicially, the secured party may record in the office in which a
  record of the mortgage is recorded:
               (1)  a copy of the security agreement that creates or
  provides for a security interest in the obligation secured by the
  mortgage; and
               (2)  the secured party's sworn affidavit in recordable
  form stating that:
                     (A)  a default has occurred with respect to the
  obligation secured by the mortgage; and
                     (B)  the secured party is entitled to enforce the
  mortgage nonjudicially.
         SECTION 18.  Chapter 9, Business & Commerce Code, is amended
  by adding Subchapter H to read as follows:
  SUBCHAPTER H. TRANSITION PROVISIONS FOR 2013 AMENDMENTS
         Sec. 9.801.  EFFECTIVE DATE OF AMENDMENTS. (a)  In this
  subchapter, "2013 amendments" means the amendments to this chapter
  enacted by the Act of the 82nd Legislature, Regular Session, 2011,
  that enacted this subchapter.
         (b)  The 2013 amendments take effect July 1, 2013.
         Sec. 9.802.  SAVING CLAUSE. (a) Except as otherwise
  provided in this subchapter, the 2013 amendments apply to a
  transaction or lien within its scope, even if the transaction or
  lien was entered into or created before July 1, 2013.
         (b)  The 2013 amendments do not affect an action, case, or
  proceeding commenced before July 1, 2013.
         Sec. 9.803.  SECURITY INTEREST PERFECTED BEFORE EFFECTIVE
  DATE. (a) A security interest that is a perfected security interest
  immediately before July 1, 2013, is a perfected security interest
  under this chapter, as amended by the 2013 amendments, if, when the
  2013 amendments take effect, the applicable requirements for
  attachment and perfection under this chapter, as amended by the
  2013 amendments, are satisfied without further action.
         (b)  Except as otherwise provided in Section 9.805, if,
  immediately before July 1, 2013, a security interest is a perfected
  security interest, but the applicable requirements for perfection
  under this chapter, as amended by the 2013 amendments, are not
  satisfied when the 2013 amendments take effect, the security
  interest remains perfected thereafter only if the applicable
  requirements for perfection under this chapter, as amended by the
  2013 amendments, are satisfied within one year after the 2013
  amendments take effect.
         Sec. 9.804.  SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE
  DATE. A security interest that is an unperfected security interest
  immediately before July 1, 2013, becomes a perfected security
  interest:
               (1)  without further action, when the 2013 amendments
  take effect if the applicable requirements for perfection under
  this chapter, as amended by the 2013 amendments, are satisfied
  before or at that time; or
               (2)  when the applicable requirements for perfection
  are satisfied if the requirements are satisfied after that time.
         Sec. 9.805.  EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE
  DATE. (a) The filing of a financing statement before the 2013
  amendments take effect is effective to perfect a security interest
  to the extent the filing would satisfy the applicable requirements
  for perfection under this chapter, as amended by the 2013
  amendments.
         (b)  The 2013 amendments do not render ineffective an
  effective financing statement that, before July 1, 2013, is filed
  and satisfies the applicable requirements for perfection under the
  law of the jurisdiction governing perfection as provided in this
  chapter as it existed before amendment. However, except as
  otherwise provided in Subsections (c) and (d) and Section 9.806,
  the financing statement ceases to be effective:
               (1)  if the financing statement is filed in this state,
  at the time the financing statement would have ceased to be
  effective had the 2013 amendments not taken effect; or
               (2)  if the financing statement is filed in another
  jurisdiction, at the earlier of:
                     (A)  the time the financing statement would have
  ceased to be effective under the law of that jurisdiction; or
                     (B)  June 30, 2018.
         (c)  The filing of a continuation statement after the 2013
  amendments take effect does not continue the effectiveness of the
  financing statement filed before July 1, 2013. However, on the
  timely filing of a continuation statement after the 2013 amendments
  take effect and in accordance with the law of the jurisdiction
  governing perfection as provided in this chapter, as amended by the
  2013 amendments, the effectiveness of a financing statement filed
  in the same office in that jurisdiction before the 2013 amendments
  take effect continues for the period provided by the law of that
  jurisdiction.
         (d)  Subsection (b)(2)(B) applies to a financing statement
  that, before July 1, 2013, is filed against a transmitting utility
  and satisfies the applicable requirements for perfection under the
  law of the jurisdiction governing perfection as provided in this
  chapter as it existed before amendment, only to the extent that this
  chapter, as amended by the 2013 amendments, 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.
         (e)  A financing statement that includes a financing
  statement filed before the 2013 amendments take effect and a
  continuation statement filed after the 2013 amendments take effect
  is effective only to the extent that it satisfies the requirements
  of Subchapter E, as amended by the 2013 amendments, for an initial
  financing statement. A financing statement that indicates that the
  debtor is a decedent's estate indicates that the collateral is
  being administered by a personal representative within the meaning
  of Section 9.503(a)(2), as amended by the 2013 amendments. A
  financing statement that indicates that the debtor is a trust or is
  a trustee acting with respect to property held in trust indicates
  that the collateral is held in a trust within the meaning of Section
  9.503(a)(3), as amended by the 2013 amendments.
         Sec. 9.806.  WHEN INITIAL FINANCING STATEMENT SUFFICES TO
  CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. (a) The filing of
  an initial financing statement in the office specified in Section
  9.501 continues the effectiveness of a financing statement filed
  before July 1, 2013, if:
               (1)  the filing of an initial financing statement in
  that office would be effective to perfect a security interest under
  this chapter, as amended by the 2013 amendments;
               (2)  the pre-effective-date financing statement was
  filed in an office in another state; and
               (3)  the initial financing statement satisfies
  Subsection (c).
         (b)  The filing of an initial financing statement under
  Subsection (a) continues the effectiveness of the
  pre-effective-date financing statement:
               (1)  if the initial financing statement is filed before
  July 1, 2013, for the period provided in unamended Section 9.515
  with respect to an initial financing statement; and
               (2)  if the initial financing statement is filed after
  the 2013 amendments take effect, for the period provided in Section
  9.515, as amended by the 2013 amendments, with respect to an initial
  financing statement.
         (c)  To be effective for purposes of Subsection (a), an
  initial financing statement must:
               (1)  satisfy the requirements of Subchapter E, as
  amended by the 2013 amendments, for an initial financing statement;
               (2)  identify the pre-effective-date financing
  statement by indicating the office in which the financing statement
  was filed and providing the dates of filing and file numbers, if
  any, of the financing statement and of the most recent continuation
  statement filed with respect to the financing statement; and
               (3)  indicate that the pre-effective-date financing
  statement remains effective.
         Sec. 9.807.  AMENDMENT OF PRE-EFFECTIVE-DATE FINANCING
  STATEMENT. (a) In this section, "pre-effective-date financing
  statement" means a financing statement filed before July 1, 2013.
         (b)  After the 2013 amendments take effect, a person may add
  or delete collateral covered by, continue or terminate the
  effectiveness of, or otherwise amend the information provided in, a
  pre-effective-date financing statement only in accordance with the
  law of the jurisdiction governing perfection as provided in this
  chapter, as amended by the 2013 amendments. However, the
  effectiveness of a pre-effective-date financing statement also may
  be terminated in accordance with the law of the jurisdiction in
  which the financing statement is filed.
         (c)  Except as otherwise provided in Subsection (d), if the
  law of this state governs perfection of a security interest, the
  information in a pre-effective-date financing statement may be
  amended after the 2013 amendments take effect only if:
               (1)  the pre-effective-date financing statement and an
  amendment are filed in the office specified in Section 9.501;
               (2)  an amendment is filed in the office specified in
  Section 9.501 concurrently with, or after the filing in that office
  of, an initial financing statement that satisfies Section 9.806(c);
  or
               (3)  an initial financing statement that provides the
  information as amended and satisfies Section 9.806(c) is filed in
  the office specified in Section 9.501.
         (d)  If the law of this state governs perfection of a
  security interest, the effectiveness of a pre-effective-date
  financing statement may be continued only under Sections 9.805(c)
  and (e) or Section 9.806.
         (e)  Whether or not the law of this state governs perfection
  of a security interest, the effectiveness of a pre-effective-date
  financing statement filed in this state may be terminated after the
  2013 amendments take effect by filing a termination statement in
  the office in which the pre-effective-date financing statement is
  filed, unless an initial financing statement that satisfies Section
  9.806(c) has been filed in the office specified by the law of the
  jurisdiction governing perfection as provided in this chapter, as
  amended by the 2013 amendments, as the office in which to file a
  financing statement.
         Sec. 9.808.  PERSON ENTITLED TO FILE INITIAL FINANCING
  STATEMENT OR CONTINUATION STATEMENT. A person may file an initial
  financing statement or a continuation statement under this
  subchapter if:
               (1)  the secured party of record authorizes the filing;
  and
               (2)  the filing is necessary under this subchapter:
                     (A)  to continue the effectiveness of a financing
  statement filed before July 1, 2013; or
                     (B)  to perfect or continue the perfection of a
  security interest.
         Sec. 9.809.  PRIORITY. The 2013 amendments determine the
  priority of conflicting claims to collateral. However, if the
  relative priorities of the claims were established before July 1,
  2013, this chapter as it existed before amendment determines
  priority.
         SECTION 19.  Chapter 11, Business & Commerce Code, is
  repealed.
         SECTION 20.  This Act takes effect July 1, 2013.