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Commercial Code / Secured Transactions

P Passed

P HB1204

Uniform Commercial Code; Secured Transactions. Updates Article 9 (Secured Transactions) of the Uniform Commercial Code which was last revised in 1972 and adopted in every state. Article 9 provides a statutory framework for transactions which involve the granting of credit secured by personal property. Filing will be with State Corporation Commission only; local filing, other than fixture filings, will be abolished. The new Article 9 generally provides for the filing of a financing statement in the state where the debtor is incorporated. The scope of Article 9 is expanded to include kinds of property such as deposit accounts, health care receivables and commercial tort claims, that were excluded in original Article 9. The location of the debtor rather than the location of the collateral will determine where a security interest perfects. The fee for filing a financing statement is increased from $10 to $20. The bill has an effective date of July 1, 2001. Article 9 is the product of the National Conference of Commissioners of Uniform State Laws.

Patron - Woodrum