Transitional Provisions for Articles 9A and 12.

Ala. Code tit. 7, art. 12A, pt. 3

in effect

Ala. Code § 7-12A-301 Saving Clause.

7-12A-301. Saving Clause. (a) Pre-effective date transaction, lien, or interest. Except as provided in this part, Article 9A as amended by Act 2023-492 and Article 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 July 1, 2024. (b) Continuing validity. Except as provided in subsection (c) and Sections 7-12A-302 through 7-12A-306: (1) a transaction, lien, or interest in property that was validly entered into, created, or transferred before July 1, 2024, and was not governed by the Uniform Commercial Code, but would be subject to Article 9A as amended by Act 2023-492 or Article 12 if it had been entered into, created, or transferred on or after July 1, 2024, including the rights, duties, and interests flowing from the transaction, lien, or interest, remains valid on and after the July 1, 2024; and (2) the transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by Act 2023-492 or by the law that would apply if Act 2023-492 had not taken effect. (c) Pre-effective date proceeding. Act 2023-492 does not affect an action, case, or proceeding commenced before July 1, 2024. EndFragment (Act 2023-492, §4.)

Ala. Code § 7-12A-302 Security Interest Perfected Before July 1, 2024.

7-12A-302. Security Interest Perfected Before July 1, 2024. (a) Continuing perfection: perfection requirements satisfied. A security interest that is enforceable and perfected immediately before July 1, 2024, is a perfected security interest under Act 2023-492 if, on July 1, 2024, the requirements for enforceability and perfection under Act 2023-492 are satisfied without further action. (b) Continuing perfection: enforceability or perfection requirements not satisfied. If a security interest is enforceable and perfected immediately before July 1, 2024, but the requirements for enforceability or perfection under Act 2023-492 are not satisfied on July 1, 2024, the security interest: (1) is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before July 1, 2024, or the adjustment date; (2) remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under Section 7-9A-203, as amended by Act 2023-492, before the adjustment date; and (3) remains perfected thereafter only if the requirements for perfection under Act 2023-492 are satisfied before the time specified in paragraph (1). (Act 2023-492, §4.)

Ala. Code § 7-12A-303 Security Interest Unperfected Before July 1, 2024.

7-12A-303. Security Interest Unperfected Before July 1, 2024. A security interest that is enforceable immediately before July 1, 2024 but is unperfected at that time: (1) remains an enforceable security interest until the adjustment date; (2) remains enforceable thereafter if the security interest becomes enforceable under Section 7-9A-203, as amended by Act 2023-492, on July 1, 2024, or before the adjustment date; and (3) becomes perfected: (A) without further action, on July 1, 2024, if the requirements for perfection under Act 2023-492 are satisfied before or at that time; or (B) when the requirements for perfection are satisfied if the requirements are satisfied after July 1, 2024. (Act 2023-492, §4.)

Ala. Code § 7-12A-304 Effectiveness of Actions Taken Before July 1, 2024.

7-12A-304. Effectiveness of Actions Taken Before July 1, 2024. a) Pre-effective-date action; attachment and perfection before adjustment date. If action, other than the filing of a financing statement, is taken before July 1, 2024, and the action would have resulted in perfection of the security interest had the security interest become enforceable before July 1, 2024, the action is effective to perfect a security interest that attaches under Act 2023-492 before the adjustment date. An attached security interest becomes unperfected on the adjustment date unless the security interest becomes a perfected security interest under before the adjustment date. (b) Pre-effective-date filing. The filing of a financing statement before July 1, 2024, is effective to perfect a security interest on July 1, 2024 to the extent the filing would satisfy the requirements for perfection under Act 2023-492. (c) Pre-effective-date enforceability action. The taking of an action before July 1, 2024, is sufficient for the enforceability of a security interest on July 1, 2024, if the action would satisfy the requirements for enforceability under Act 2023-492. EndFragment (Act 2023-492, §4.)

Ala. Code § 7-12A-305 Priority.

7-12A-305. Priority. (a) Determination of priority. Subject to subsections (b) and (c), Act 2023-492 determines the priority of conflicting claims to collateral. (b) Established priorities. Subject to subsection (c), if the priorities of claims to collateral were established before July 1, 2024, Article 9A as in effect before July 1, 2024, determines priority. (c) Determination of certain priorities on adjustment date. On the adjustment date, to the extent the priorities determined by Article 9A as amended by Act 2023-492 modify the priorities established before July 1, 2024, the priorities of claims to Article 12 property established before July 1, 2024, cease to apply. (Act 2023-492, §4.)

Ala. Code § 7-12A-306 Priority of Claims When Priority Rules of Article 9A Do Not Apply.

7-12A-306. Priority of Claims When Priority Rules of Article 9A Do Not Apply. (a) Determination of priority. Subject to subsections (b) and (c), Article 12 determines the priority of conflicting claims to Article 12 property when the priority rules of Article 9A as amended by Act 2023-492 do not apply. (b) Established priorities. Subject to subsection (c), when the priority rules of Article 9A as amended by Act 2023-492 do not apply and the priorities of claims to Article 12 property were established before July 1, 2024, law other than Article 12 determines priority. (c) Determination of certain priorities on adjustment date. When the priority rules of Article 9A as amended by Act 2023-492 do not apply, to the extent the priorities determined by Act 2023-492 modify the priorities established before July 1, 2024, the priorities of claims to Article 12 property established before July 1, 2024, cease to apply on the adjustment date. (Act 2023-492, §4.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026