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Note:

Commercial Law—Multistate Transactions—When a Secured Party’s Perfection Lapses in a State to Which Goods Have Been Moved, the Return of the Goods to the First State Does Not Revive Its Perfection.  In re Miller, 14 UCC Rep. Serv. 1042 (D. Ore. Apr. 16, 1974), 53 TEXAS L. REV. 578 (1975).  

The UCC provides for reperfection after a debtor moves goods from a jurisdiction in which a perfected security interest is held to a jurisdiction in which the security interest is not perfected.  However, it does not address the issue of perfection lapsing out of the original jurisdiction, followed by the debtor’s return to the original jurisdiction, in which the original financing statement is ostensibly valid.  In Miller, the Oregon court held that failure to maintain perfection in a foreign jurisdiction results in a lapsing of perfection even after the goods are returned to the original jurisdiction.  The court came to this conclusion by analyzing interrelated provisions of the UCC.  In this note, the author suggests some further arguments that Miller’s counsel could have made for reviving the original financing statement once the goods returned to the original jurisdiction.  The author concludes that, given the structure and policies of the UCC, the Oregon court’s holding was correct.