Last Friday, California Governor Jerry Brown signed Assembly Bill 502, the bill containing the 2010 Amendments to UCC Revised Article 9.
Although AB 502 as introduced included the language of Alternative A (“Only If”) for individual debtor names, the bill was amended in the Senate on 6/24/13 to create a non-uniform rule for the sufficiency of individual debtor names in § 9-503(a)(5). The bill, as passed, now provides that if the debtor is an individual, the financing statement is sufficient only if it provides the individual name of the debtor or the surname and first personal name of the debtor. In essence, it is Alternative B without the driver's license option.
The original effective date of the bill was also moved out to July 1, 2014 in order to allow the Secretary of State sufficient time for implementation of the new law. AB 502 appropriates $240,000 from the Secretary of State’s Business Fees Fund for expenditures in the 2013-14 fiscal year to implement the provisions of this measure, including promulgating appropriate regulations, modifying automated filing systems and programming, and updating filing forms.
The bill has been chaptered by the Secretary of State as Chapter 531, and a full copy can be obtained at: http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0501-0550/ab_502_bill_20131004_chaptered.pdf .
An important reminder to our customers: The California Secretary of State and the fifty-eight (58) county filing offices do not accept the most recent versions (4/20/11 Rev. Date) of the national UCC forms. This is not expected to change until July 1, 2014.
An updated matrix of the individual states' adoption of the new amendments to the Article 9 of the Uniform Commercial Code, including California's passage of its legislation, can be found here.