CT Lien Solutions Blog

2013 Q&A series – Filing on individual debtors based on driver’s license

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: If the individual has just moved to a new state and did not change his driver’s license, can we file in the state on their ID as well as their new state of residence?

A: There’s no need to do that. The only requirement under Article 9 is to file in the principle residence of the individual. So if an individual has moved to a new location and that is their principle residence, that is the place to file. If they still have a driver’s license from the old residence or the old jurisdiction, there’s no need just because they still have a driver’s license from there to file anything there. You only need to make one filing at the debtor’s location. The only issue you run into there is you can’t use the driver’s license to determine the individual debtor name.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Ordering Articles of Incorporation for your debtors

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: If you don’t have the articles of an existing client, should we obtain to ensure he’s using the correct name?

A: Our recommendation is yes. You definitely want to use the name on the public organic document.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Amending the debtor name

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: Often in an Article of Amendment in stock issuance, the first line of the amendment says the name of the corporation is XYZ. Sometimes the name typed in contains an error in the spelling. As I understand the last clause of the standard, this would not count as intending to restate or amend the name. Is that correct?

A: This is 100% correct. The only time it counts is if it’s a public organic document or if the document is intended to amend, restate or name the corporation. All of those other amendments that may happen to a corporation or an LLC record do not count.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Determining the correct legal name for an organization

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: Can a W-9 form attest as an organization’s name?

A: No, it has to be the public organic record as per the statutory change.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Transition period for 2013 amendments

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: How would a public organic record affect UCC monitoring for existing UCC filings? Will a grace period be given to update these UCCs and add continuation?

A: There is a five-year transition period that goes until June 30, 2018. So let’s say for example you’re a bank and you have 10,000 filings against individual debtor names. But you didn’t necessarily use the name on the driver’s license. So you’re thinking, what do I need to do on July 1, 2013? Do I need to go in and fix all these? Well, if you’re using an individual name that is effective under current law, which is just about anything, it doesn’t have to be the driver’s license, those filings are going to be valid until the time they would otherwise lapse. So they’re totally effective until it comes time for them to lapse. So on July 1, you don’t need to worry about anything. They’re still effective. The only time you need to worry about something is when it comes time for it to lapse. If you need to continue the filing, then when you fix the filing you need to make that filing comply with the new rules. So, when a filing comes time to lapse, let’s say in 2017, you need to go in and not just file a continuation, but file an amendment—and file the amendment to make the debtor name match precisely with that of the driver’s license.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Maintaining perfection after debtor name change

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: What happens if an organization changes names, such as going from LLC to partnership? If the lender is unaware of the change of the name, is the lender still secured?

A: That refers back to the 9-507, 9-316 issue where you have a four-month period essentially under 9-507 on the name change. If a name changes to the extent that it’s seriously misleading to where it can’t be found in a search, then you have a four-month period to change it. After that, you will lose perfection against if acquired after that four month period.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

Update on July 1, 2013 legislation

As July 1 is just around the corner, we thought it would be helpful to provide a summary/update of current activity. As we continue to survey the state filing offices, we’ll have more information regarding the implementation of the amendments.

Through May 29, 2013, the following 38 states have adopted the Article 9 amendments:

AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MT, NE, NV, NM, NC, ND, OH, OR, RI, SD, TN, TX, UT, VA, WA WV, WI, WY

The amendments are still pending in the following 10 states:

AK: Pending **
AZ: Pending (effective date is September 1, 2013)
CA: Pending (effective date is July 1, 2014)**
ME: Pending
MA: Pending
MO: Pending (effective date is August 28, 2013)
NJ: Pending
NY: Not introduced yet
PA: Pending
SC: Pending

** All pending states have chosen Alt A. (only if) regarding individual debtor names, with the exception of Alaska (Alt B) and California (maintaining current law).

The RRA9 Amendments will NOT pass in 2013 (Legislatures have adjourned) and will likely be reintroduced in 2014, in the following 3 states:

AL, OK, VT

2013 Q&A series – Where to file against an individual

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: Do the new UCC Article 9 amendments change where a UCC has to be filed against an individual? Is it still their state of residence?

A: Yes, it is still the principle residence of an individual.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – Case and punctuation in filings

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

 Q: Does punctuation in case of letters make a difference in filing?

A: Yes, it does. Punctuation, spaces, upper/lower case, everything like that, must follow exactly what is on the Articles of Incorporation because that’s the only 100% bulletproof assurance that searchers and filers will match and be able to find the proper filings. So you never want to take it upon yourself to in any way change the format or form of a debtor name. You want to let the filing office’s computer do those things, but you don’t want to do those yourself.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.

2013 Q&A series – New amendments and federal tax liens

CT Lien Solutions recently hosted a webinar on the July 2013 amendments to the UCC Article 9. With more than 1,500 attendees, our expert Tim Hall fielded a wealth of questions from the audience. Over the span of several weeks, we will address some of those questions here on our blog. Keep coming back for more answers.

Q: Will the new amendments taking effect July 1, 2013 ease the fears raised by In Re: Spearing Tools?

A: Probably not, because In Re: Spearing Tools is a federal tax lien case. Changes to the UCC won’t affect that, so I don’t anticipate anything there unless Spearing Tools or a similar case will be re-litigated in the context of the public organic document. But from what I can tell, the IRS will continue to do what they have always done.

Tim Hall, Director of Government Relations, has been with CT Corporation for 15 years. He spent his first three years as a Team Leader for a UCC Service team, and has been with the Government Relations team for the remainder of his tenure. He is a graduate of The Ohio State University and the Northern Illinois University College of Law, and is a frequent speaker on Article 9 of the UCC.