On January 4, 2011, North Dakota became the second state to introduce legislation to adopt new revisions to the UCC Article 9. (Nevada was the first; see our previous post for details). The ND bill appears to substantially adopt the model language, as proposed by NCCUSL this past summer.
Perhaps the most significant proposed amendment here is in the treatment of individual debtor names. As you may recall from previous postings on this blog, the Model Act contains two alternatives regarding standards for individual debtor names. The North Dakota bill includes Alternative A, commonly referred to as the “Only If” standard. Should the legislation pass, this would mean that in North Dakota, if the debtor is an individual to which the state has issued a driver’s license (or other identification issued by the same agency) that has not expired, the financing statement would sufficiently name the debtor only if it contains the name indicated on the driver’s license. If the debtor does not have a driver’s license, the financing statement may identify the debtor by the individual name or personal name and surname.
For further details on the text of the introduced bill, visit the North Dakota State Government website.
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