UCC Article 9 amendment series - #4

Today’s post marks the final official installment of our UCC Article 9 amendment series. Thanks for reading us this week, and remember, feel free to direct any questions to us by emailing CT Lien Solutions.

Contributed by Tim Hall, Managing Attorney, CT Corporation

Organizational Information on a Financing Statement

Section 9-516 (in conjunction with section 9-520) currently requires that a filing office reject a record for certain enumerated reasons. Section 9-516(b)(5)(C) requires a financing statement be rejected if the debtor is an organization, and the financing statement fails to provide the type of organization, jurisdiction of organization or the organizational ID number of the debtor. While many states did not adopt this section entirely, this information is still required in most jurisdictions. The proposed amendments will delete section 9-516(b)(5)(C), thus removing the need for the filer to include it on the financing statement. In addition, these fields will be removed from the national UCC forms.

Correction Statement

Current Article 9 allows a debtor to file a UCC-5 Correction Statement under certain conditions. Under the new law, the statute will refer to the record as an “information statement” rather than a “correction statement”. In addition, authority to file the record will be extended to the secured party.

National UCC Forms (UCC-1 and UCC-3)

When Article 9 was revised in 2001, an important part of the statute was the inclusion of a “national form” as part of the statutory text. The proposed amendments will include new UCC forms, which have been carefully designed by the International Association of Commercial Administrators, upon close consultation from NCCUSL, the lending industry, the legal industry, etc. To view the proposed forms, please consult the following site: Draft UCC Forms (Revised 04/19/10)

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.

Comments

[Michelle Rowley]

Small glitch with #3 - for now you can access via the menu on the right. Thanks for the comment!

[Lisa Noell]

What happened to Series #3? I see 1, 2 and 4? :)

Thanks