Delaware – UCC Article 9 2010 amendments introduced

January 17, 2013

The Delaware Legislature introduced a bill to enact the 2010 Amendments to UCC Article 9 on January 15, 2013.  House Bill 8 includes a few noteworthy deviations from the official text of the 2010 Amendments. 

The bill adopts neither Alternative A nor Alternative B for sufficiency of individual debtor names.  Instead, amended Section 9-503(a)(4) omits the driver’s license entirely as the source of an individual debtor name.  If the debtor is an individual, the financing statement will be sufficient only if it provides the individual name of the debtor or the surname and first personal name of the debtor.  

The bill also departs from the official text by adding new Section 9-512(f).   This new provision clarifies whether Section 9-507(c) or Section 9-508 applies when a filed financing statement becomes seriously misleading following the conversion of the debtor from one entity type to another. 

Finally, Section 9-521 incorporates images of the 4/20/2011 forms set forth in the official text, but includes some additional non-uniform forms.  Section 9-521 includes optional amendment and amendment addendum forms.  The optional forms are very similar to the regular UCC3 forms, but they include an extra action for “Amendment (Other)”.  

Aside from the non-uniform provisions listed above, HB 8 adopts the official text of the 2010 Amendments, including the uniform effective date of July 1, 2013.

Additional resources on the 2010 Amendments to UCC Article 9, including legislative status charts, are available at http://csctransactionwatch.com/amendments/.
 
If you have questions or need more information on Article 9 legislation, please contact Paul Hodnefield, Associate General Counsel, at phodnefi@cscinfo.com or 800-927-9801, ext. 62375.