SECTION 95.306. Initial Financing Statement

Upon the filing of an Initial financing statement the status of the parties and the status of the financing statement shall be as follows.

(1) Status of secured party. Each secured party named on an Initial financing statement shall be a secured party of record, except that if the UCC record names an assignee, the secured party/assignor shall not be a secured party of record and the secured party/assignee shall be a secured party of record.

(2) Status of debtor. Each debtor name provided by the Initial financing statement shall be indexed in the UCC information management system so long as the financing statement is an Active Record.

(3) Status of financing statement. The financing statement shall be an Active Record. A lapse date shall be calculated, five years from the file date, unless:

(A) the Initial financing statement indicates as provided in §95.101(8) of this title (relating to Means to Deliver UCC Records; Time of Filing) that it is filed with respect to a public-finance transaction or a manufactured-home transaction, in which case the lapse date shall be thirty years from the file date; or

(B) the Initial financing statement indicates as provided in §95.101(8) of this title that it is filed against a transmitting utility, in which case there shall be no lapse date.

Source Note: The provisions of this §95.306 adopted to be effective July 1, 2012, 37 TexReg 4571; amended to be effective January 9, 2014, 39 TexReg 73