UCC Article 9 Update
July 7, 2014
Those who follow UCC Article 9 issues will find this news interesting: On June 19, 2014, the New York legislature passed Assembly Bill 9933, which enacts the 2010 Amendments to UCC Article 9 (the “Amendments”). The bill is currently awaiting transmission to the governor.
The bill adopts the Alternative A “Only If” approach for the sufficiency of individual debtor names in § 9-503(a)(4). The new rule will require a financing statement to provide the name indicated on the individual debtor’s unexpired driver’s license or non-driver photo identification card (if the state has issued one of those documents). Otherwise, the financing statement must provide the individual name of the debtor or the surname and first personal name of the debtor.
The new law does not change the existing non-uniform version of § 9-521 in New York, which leaves it to the Secretary of State to decide which forms a filing office must accept. It is possible that the Secretary of State will not approve the new forms because the Amendments as passed by the legislature do not eliminate the need to provide the type and jurisdiction of an organization debtor. The new forms do not have fields for that information.
The law becomes effective when the governor signs the bill, which is expected to take place any time from mid-July through September. Those who file or search UCC records should pay close attention to the bill’s status in the coming days and weeks to ensure they are complying with the correct version of Article 9.
In addition to the New York developments, those who file or search UCC records should remember that the Amendments took effect in three more states on July 1, 2014: Alabama, California and Vermont. Filers should be sure to comply with the new rules and use only the 04/20/11 revision date forms in those states.
If you have questions or need additional information, please contact:
Associate General Counsel
Phone: (800) 927-9801, ext. 62375