Welcome to the first installment of our UCC Article 9 amendment series. We’ll be updating the blog daily for the remainder of the week with more information on the 2013 RA9 amendment package!
Contributed by Tim Hall, Managing Attorney, CT Corporation
Last week, the National Conference of Commissioners for Uniform State Laws (NCCUSL) held its annual meeting in Chicago. On Tuesday, July 13, the Joint Review Committee on UCC Article 9 conducted the final reading of its proposed amendments to Article 9, and on Thursday, July 15, the full NCCUSL membership voted to adopt the proposed changes. As a result, over the next few years, state legislatures will likely be adopting these amendments, in whole or in part.
NCCUSL has proposed changes to both the statutory text of Article 9 and the Official Comments found throughout Article 9. In this post and those to appear over the next several days, we provide a short summary of those amendments we believe may have the greatest impact. However, in order to gain greater insight into how the proposals will affect you and your current/future practices, we strongly encourage you to review the full-text of the amendments here.
Effective Date for the Amendments
Per section 9-801, the goal of the drafters is to have uniform adoption of the amendments in each state, with a uniform effective date of July 1, 2013. Having a uniform effective date reduces the risk potentially created by various choices of law rules, different UCC forms, different debtor name standards, etc. In addition, it allows each state legislature sufficient time to review the amendments and solicit feedback from constituents. It also provides a sufficient period of time for the lending industry, legal counsel, state filing offices and other interested parties to conduct sufficient training and prepare their internal systems as needed. The revisions also specify a five year transition period, from 2013-2018, to allow for a gradual and methodical implementation.
Check in tomorrow for details on changes to definitions found in section 9-102, and continued perfection of security interest following change of governing law!
Tim Hall has been with CT Corporation for more than 13 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 past ten years. 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.
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