This law section states that its rules started taking effect on July 1, 2001.

This section explains that the rules in this division apply to certain financial transactions or liens, even if they began before these rules came into effect. If you had a transaction or lien that wasn't covered by the previous rules but was started before July 1, 2001, it's still valid under the current rules. You can finish, enforce, or end these transactions according to the new rules or as they would have been if this division didn't exist. However, if there was a legal action or case that started before July 1, 2001, this division doesn’t change that.

This law addresses the transition of security interests around July 1, 2001. If a security interest was already valid and fully enforceable right before that date, it automatically became a 'perfected' interest under the new rules without needing any additional steps. If it was valid but not fully compliant with the new rules, it would still be considered perfected until July 1, 2002. To remain enforceable or perfected after that, it would need to meet the new standards by July 1, 2002, outlined in this division. This law ensures old interests smoothly transition to new regulations without losing their legal status, as long as deadlines are met.

This section explains what happens to a security interest—a claim on assets by a lender—that was enforceable before July 1, 2001, but is less prioritized than a lien creditor's rights at the same time. It will stay enforceable until July 1, 2002. If it meets certain conditions, it can remain enforceable after that date. To become "perfected," which means legally protected against third parties, it can happen automatically on July 1, 2001, if it already follows the rules, or whenever the conditions are met if done later.

This law section outlines the rules regarding the perfection and priority of security interests through financing statements filed before and after July 1, 2001. If actions were taken before July 1, 2001, to secure a priority interest, they are effective to maintain that interest until July 1, 2002, unless otherwise perfected under the current rules. A financing statement filed before this date remains effective only until the earlier of either its original expiration under prior law or June 30, 2006. Similarly, after July 1, 2001, filing a continuation statement does not extend the effectiveness of a pre-existing financing statement unless certain conditions are met. The section also covers special conditions related to transmitting utilities and the required compliance with new governing rules.

This section explains how an initial financing statement, which is filed after July 1, 2001, in a specific office can continue the legal effectiveness of a financing statement that was filed before that date. To do this, the new statement must be valid to create a security interest, indicate where and when the old statement was filed, and meet specific requirements. The duration for which the old statement stays effective depends on when the new statement was filed. If filed before July 1, 2001, it follows an older rule, and if filed after, it follows a newer rule.

This section talks about how to handle financing statements that were filed before a certain date. After this section starts to apply, you can only change these old statements if you follow the rules of the state that governs them. If California's laws are in charge, you can add to or change these old statements by filing the right documents in the correct office. You can also end these statements if you file a termination statement in the same place the original was filed, unless a new statement has already been filed according to the relevant rules.

If you want to file a financing statement or keep one active, you need permission from the secured party, and it must be necessary to maintain a filing from before July 1, 2001, or to protect a security interest.

This section explains how to determine which claim has priority when there are competing claims to the same collateral. If the priorities were set before July 1, 2001, then the old rules apply. For security interests becoming enforceable on or after July 1, 2001, the priority is determined as of that date, but only if the interest was perfected by filing a specific financial document before July 1, 2001, that wouldn't have been effective under the old rules. This rule doesn't apply if both claims are perfected through such filings.