A continuation statement is a legal document that serves as an amendment to a financing statement. It identifies the original financing statement by its file number and indicates that it is intended to extend the effectiveness of that initial statement. This document is essential for maintaining the priority of a secured party's interest in collateral over time.
Continuation statements are primarily used in the context of secured transactions under the Uniform Commercial Code (UCC). They are relevant in areas such as commercial law and finance, where businesses secure loans against collateral. Users can often manage the filing of continuation statements themselves with the help of legal templates provided by platforms like US Legal Forms.
Here are a couple of examples of abatement:
For instance, if a business initially filed a financing statement to secure a loan against its inventory, it must file a continuation statement before the expiration of the original statement to keep its security interest valid. (hypothetical example)
The primary legal framework governing continuation statements is found in the Uniform Commercial Code, particularly Article 9, which deals with secured transactions. Specific state adaptations of the UCC may also apply.
| State | Filing Period for Continuation |
|---|---|
| California | Five years from the original filing date. |
| New York | Five years from the original filing date. |
| Texas | Five years from the original filing date. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Financing Statement | A document that provides notice of a secured party's interest in collateral. | A financing statement is the initial filing, while a continuation statement is an amendment to extend its validity. |
| Amendment | A change made to a legal document. | A continuation statement is a specific type of amendment focused on extending the effectiveness of a financing statement. |
If you need to file a continuation statement, ensure you do so before the expiration of the original financing statement. You can use legal templates from US Legal Forms to assist you in this process. If your situation is complex, consider seeking professional legal advice to ensure compliance with all requirements.
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Its purpose is to extend the effectiveness of an original financing statement, ensuring that the secured party's interest remains valid.