South Dakota Enacts the 2010 Amendments to UCC Article 9
March 5, 2012
South Dakotabecame the first state to enact the 2010 Amendments to UCC Article 9 during the 2012 legislative season. The governor signed House Bill 1059 on Friday, March 2, 2012. The new law provides the Alternative A “Only If” approach for individual debtor name sufficiency in Section 9-503(a)(4), incorporates images of the new UCC forms in Section 9-521, and takes effect on July 1, 2013.
The bill contains one provision that will disappoint many UCC filers and privacy advocates. Under current S.D. Codified Laws § 57A-9-502(a)(1), a financing statement is sufficient only if it provides “either the social security number or the internal revenue service taxpayer identification number of the debtor.” The new law does not change this provision, making South Dakota the only state to require that a secured party put the debtor’s Social Security number in the UCC public record.