(a) Laws 1995, LB 97, does not affect an action or proceeding commenced before January 1, 1996.
(b) If a security interest in a security is perfected at January 1, 1996, and the action by which the security interest was perfected would suffice to perfect a security interest under Laws 1995, LB 97, no further action is required to continue perfection. If a security interest in a security is perfected at January 1, 1996, but the action by which the security interest was perfected would not suffice to perfect a security interest under Laws 1995, LB 97, the security interest remains perfected for a period of four months after January 1, 1996, and continues perfected thereafter if appropriate action to perfect under Laws 1995, LB 97, is taken within that period. If a security interest is perfected at January 1, 1996, and the security interest can be perfected by filing under Laws 1995, LB 97, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.
Source:Laws 1995, LB 97, § 56.
The revision of article 8 should present few significant transition problems. Although the revision involves significant changes in terminology and analysis, the substantive rules are, in large measure, based upon the current practices and are consistent with results that could be reached, albeit at times with some struggle, by proper interpretation of the rules of present law. Thus, the new rules can be applied, without significant dislocations, to transactions and events that occurred prior to enactment.
The enacting provisions should not, whether by applicability, transition, or savings clause language, attempt to provide that old article 8 continues to apply to "transactions", "events", "rights", "duties", "liabilities", or the like that occurred or accrued before the effective date and that new article 8 applies to those that occur or accrue after the effective date. The reason for revising article 8 and corresponding provisions of article 9 is the concern that the provisions of old article 8 could be interpreted or misinterpreted to yield results that impede the safe and efficient operation of the national system for the clearance and settlement of securities transactions. Accordingly, it is not the case that any effort should be made to preserve the applicability of old article 8 to transactions and events that occurred before the effective date.
Only two circumstances seem to warrant continued application of rules of old article 8. First, to avoid disruption in the conduct of litigation, it may make sense to provide for continued application of the old article 8 rules to lawsuits pending before the effective date. Second, there are some limited circumstances in which prior law permitted perfection of security interests by methods that are not provided for in the revised version. Section 8-313(1)(h) (1978) permitted perfection of security interests in securities held through intermediaries by notice to the intermediary. Under revised article 8 and article 9, security interests can be perfected in such cases by control, which requires the agreement of the intermediary, or by filing. It is likely that secured parties who relied strongly on such collateral under prior law did not simply send notices but obtained agreements from the intermediaries that would suffice for control under the new rules. However, it seems appropriate to include a provision that gives a secured creditor some opportunity after the effective date to perfect in this or any other case in which there is doubt whether the method of perfection used under prior law would be sufficient under the new version.