Alabama Introduces the 2010 Amendments to UCC Article 9
February 15, 2012
The Alabama Senate introduced a bill to enact the 2010 Amendments to UCC Article 9 on Tuesday, February 14, 2012. Senate Bill 308 provides the Alternative B “Safe Harbor” approach for individual debtor name sufficiency in Section 9-503(a)(4) and adopts the uniform effective date of July 1, 2013.
There are a couple departures from the official text of the 2010 Amendments in SB 308. First, the bill includes amendments to Section 9-502(c)(3) that the Legislative Note states should only be enacted if the state enacts Alternative A for Section 9-503(a)(4).
The other departure concerns public-finance transactions. Alabamaenacted a non-uniform version of Section 9-515(b) that omitted any mention of public-finance transactions. Thus, financing statements that indicate they are filed in relation to a public financing transaction are only effective for 5 years inAlabama, instead of the 30-year period provided in the official text of Article 9.
TheAlabamalegislation changes the caption to current Code of Ala. Section 7-9A-515(b) to reference both public-finance and manufactured-home transactions. However, the text of that section continues to omit the 30-year effectiveness for financing statements filed in relation to a public finance transaction. Likewise, SB 308 fails to provide a definition for “public-finance transaction in Section 7-9A-102(a)(67).
Any bill can be amended throughout the legislative process. CSC will provide updates for any significant developments with SB 308 and all other state Article 9 legislation.