Article 9 Legislative Update
February 7, 2014
There has been a lot of legislative week activity and here are the highlights.
2010 Amendments to UCC Article 9
Arizona: SB 1046 to enact the 2010 Amendments passed the Senate on 2/3/2014 and was transmitted to the House. Committee assignment in the House is pending.
Article 9, Lien & Related Legislation
Alaska: HB 222 was withdrawn from further consideration on 2/3/2014. This bill would have permitted the recorder to reject a record submitted for filing for an unlawful, false, or fraudulent purpose, to promote an illegitimate object or purpose, in bad faith, or to harass or defraud a person.
Arizona: HB 1471 was introduced on 2/4/2014 to amend existing law related to liability for false lien filings against real property. The language changed slightly to expand the types of instruments subject to the provision. The bill was sent to the Judiciary and Rules committees on 2/5/2014.
Kansas: HB 2569 was introduced on 2/6/2014 to address fraudulent filing. This bill amends existing law to prohibit the secretary of state or register of deeds from accepting liens or claims from a person after receipt of a court order that set aside a false lien or claim filed by that person. In effect, this would require the filing office to review every record submitted. Committee assignment is pending.
Maryland: HB 99, which requires the UCC filing office to send a notice to the debtor in certain cases, passed out of committee with amendments on 2/5/14. The amendments clarify that the provision does not apply to a financing statement that is a mortgage or deed of trust. That amendment may require a further amendment because a financing statement is not a mortgage or deed of trust, but those records can be effective as a financing statement filed as a fixture filing.
Mississippi: HB 860, which would have increased the penalties for failure to terminate a UCC or satisfy a mortgage to $200 per day of non-compliance, died in committee on 2/4/2014.
Mississippi: HB 1086, which would have enacted the Uniform Certificate of Title for Watercraft Act, died in committee on 2/4/2014.
Mississippi: SB 2026 to establish a central state tax lien registry passed a Finance Committee subcommittee on 2/4/2014.
Mississippi: SB 2794 to establish a central state tax lien registry died in committee on 2/4/2014.
New Jersey: AB 2481 was introduced on 2/6/2014 to address the problem of fraudulent UCC financing statements. The text is not yet available. Committee assignment is pending.
Utah: HB 16, which amends the non-consensual common-law lien statute to prevent wrongful liens against public officials, passed out of committee on 2/6/2014 and is pending in the House.
West Virginia. House Bill 4417 was introduced on 2/5/14 to extend the duration of liens on motor vehicles. The bill was assigned to the Banking & Insurance Committee.