Carefree Bank becomes a little more careful. It filed a financing statement on August 1, 2022. Knowing the financing statement would expire on August 1, 2027, Carefree Bank files a continuation statement on August 1, 2026. Will that extend the effectiveness of the filing? 

(A) Yes, a filed continuation statement extends the effectiveness of the filing by five years. 

(B) Yes, a filed continuation statement extends the effectiveness of the filing by five years from when the continuation statement is filed, so until August 1, 2031 (four more years from when it would have expired). 

(C) No. A financing statement is limited to five years.

(D) No, Carefree Bank needed to file the continuation statement in the last six months of the five-year period. It filed one year before expiration, so it filed too early and the continuation statement is ineffective

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is B Yes a filed con... View the full answer