Are you ready to implement the 2010 Amendments to Article 9 of the Uniform Commercial Code (UCC) which take effect on July 1, 2013? If not, now’s the time to learn about the changes. We’ve been highlighting the changes in recent articles to help our clients and other readers prepare. In this article, we are taking a look at the legislative status of the Amendments in individual states and other U.S. jurisdictions.
At the time of this writing, New York is the only U.S. state where legislation containing the Amendments has not yet been introduced. A bill is expected in June, so there is a chance New York will enact the Amendments before July 1, 2013.
A few jurisdictions, such as the U.S. Virgin Islands, are also behind the curve and have not yet introduced legislation to enact the Amendments, but the U.S. Virgin Islands is expected to eventually come on board. Guam and the Northern Marianas, on the other hand, have not adopted Revised Article 9 and do not appear to be planning to do so anytime soon.
While the vast majority of U.S. states and territories will embrace the changeover on July 1, 2013, the remaining jurisdictions that have not yet enacted the Amendments will probably delay the effective date for a year or more, if and when they enact the Amendments.
Other states are considering legislation to delay the effective date of the amendments, as follows:
- Arizona — considering legislation to delay the effective date until September 1, 2013
- Oklahoma — considering legislation to delay the effective date until July 1, 2014
- California — legislation to delay the effective date has been sent to committee, but may be enacted before July 1, 2013
The moral of this story is: Be ready to implement the 2010 Amendments to Article 9 on July 1, 2013, but make it a part of your filing protocol to check the status of Amendments in the relevant jurisdiction before you file.
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 email@example.com, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.