Several months ago, we gave our readers a heads-up to get ready to implement the 2010 Amendments to Article 9 of the Uniform Commercial Code (UCC) which take effect on July 1, 2013. With the changeover date right around the corner, we want to dedicate a few articles to highlight the differences UCC financing statement filers need to know.
In this article, we will discuss using the new forms versus the old forms. The changes are important, but somewhat inconspicuous and may be easily overlooked if filers are not aware of them. Follow this link if you’d like to take a look at the new 9-521 forms.
First of all, we cannot begin using the forms until July 1, 2013, even though the new forms have been available since April 20, 2011. The reason is that the new forms do not contain fields for some information some states still require. So, you should continue using the old forms until June 30, 2013.
Additionally, as of this writing, Maine, New York, and Vermont are still awaiting introduction of the 2010 Amendments in the state legislatures. For those states, filers of UCC financing statements should check whether the state has enacted the 2010 Amendments and the effective date before filing any financing statements in those states. Delaware’s version is non-uniform.
One of the changes coming in states that have enacted the 2010 Amendments is financing statements will no longer contain the debtor’s social security number — except in South Dakota. But, since the new form doesn’t have a field for the debtor’s social security number, South Dakota financing statements should include the debtor’s social security number in the collateral field or in the Optional filer Reference Data field. Don’t put the social security number in the debtor’s name field, or your financing statement will not accurately reflect the debtor’s name.
Another change in the new forms is the absence of fields for the debtor’s organization information, including type, jurisdiction and organizational ID number. This information is no longer required because the 2010 Amendments eliminated Section 9-516(b)(5)(C).
If you are a lender or other secured party with questions about implementing changes required by the 2010 Amendments, be sure to seek the advice of experienced legal counsel. The attorneys at Glass & Goldberg are committed to helping you minimize risk and manage uncertainty, and can help structure your policies and procedures to meet your goals.
Glass & Goldberg provides high quality and cost-effective legal services and advice for clients in all aspects of business litigation and transactional law. Call us at (818) 888-2220, email us at firstname.lastname@example.org, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.