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 decided to dedicate a few articles to highlighting some of the changes UCC financing statement filers need to know.
One of the primary purposes of the 2010 Amendments was to promote uniformity by designating a reliable source of information for the debtor’s correct name — the debtor’s state-issued drivers license.
Under the 2010 Amendments, the debtor’s state-issued drivers license rules as the preferred source of the debtor’s correct name. It cannot be overstated that the financing statement should accurately reflect the debtor’s name exactly as it appears on his or her state-issued drivers license.
Why? Because when the 2010 Amendments take effect on July 1, 2013, depending on the state of filing, a security interest is perfected only if the debtor’s name on the financing statement matches the debtor’s name on his or her state-issued drivers license (if the state elected the ‘only-if’ alternative). If the state elected the safe harbor alternative, then the debtor’s name is adequately stated on the financing statement if it matches the name on the debtor’s state-issued drivers license.
In other words, the drivers license rules. It is critical that the debtor’s name on the financing statement matches the debtor’s name on his or her drivers license. (Follow this link to take a look at the new 9-521 forms.)
While this is a welcomed change for the better for UCC financing statement filers, it does present some questions, including:
- What if the debtor does not have a drivers license?
- What if the debtor’s name on the drivers license does not fit in the corresponding field on the financing statement?
- What if the debtor’s name on the drivers license contains special characters?
- Does the debtor’s address on the financing statement also have to match the address on the drivers license?
We will answer these questions and other in upcoming articles, so check back soon to be sure your organization is prepared to begin using the new forms accurately on July 1, 2013.
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.
 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 using the new financing statement forms in those states. Delaware’s law is non-uniform.