Assembly Bill 1858 to amend California’s RRA9 legislation to adopt a “clean” Alternative A for sufficiency of debtor name was amended last weekend by the state’s Senate and re-referred to the Senate Judiciary Committee. The original AB1858 was introduced in February 2014; approved by the Assembly’s Judiciary Committee in April; and then sent to the California Senate in late May.
The amended AB1858 establishes January 1, 2015 as the effective date and adds specific transition provisions for UCC filings in effect on January 1, 2015 that also list one or more individuals as debtors.
AB1858 would amend the California’s 2013 UCC Article 9 legislation so that the debtor’s name on the financing statement would read as it appears on his or her California driver’s license or state identification card. This bill would make California law consistent with the majority rule as it pertains to Alternative A, and in particular address lingering confusion about what constitutes a sufficient debtor’s name resulting from the earlier law.
- Requires a filer to provide on the financing statement the name indicated on the debtor's driver's license or identification card, if the debtor is an individual to whom the California Department of Motor Vehicles (DMV) has issued a driver’s license or identification card that has not expired.
- Provides that if the debtor does not have a driver's license or identification card, the filer must provide on the financing statement either the individual name of the debtor, or the surname and first personal name of the debtor.
- Clarifies that the most recently issued driver's license or identification card is to be used if more than one was issued by the DMV.
- Prohibits discrimination in the provision or terms of credit against people who do not hold or present a driver's license.
The Senate Judiciary Committee's public hearing on the now amended version of the bill is scheduled for Tuesday, June 24. Click here for the most recent version of AB1858.