House of Representatives

HB 2025

uniform commercial code; secured transactions

Sponsors: Representative Leff

 

DPA

Committee on Commerce and Economic Development Committee

X

Caucus and COW

 

 

As Passed the House

 

HB 2025 makes numerous technical and clarifying changes to the Uniform Commercial Code Secured Transactions statutes, including those relating to the effective dates.  Additionally, the bill clarifies definitions and requirements for financing statements.  

 

History

Laws 1999, Chapter 203, rewrote and modified Article 9, the Secured Transactions provisions of the Uniform Commercial Code (UCC).  The bill was based on model legislation and becomes effective July 1, 2001.

 

Provisions

·                      Modifies the definition of chattel paper to include a record of security interest in specific goods and the licensing of the associated software.  Additionally includes the secured interest in the lease of such goods and their software.  Defines monetary obligation.  Clarifies that chattel paper does not include the records evidencing the right to payment from the use of a credit card or their associated information.

·                      Clarifies the priority of lien creditors and security interest rights.

·                      Stipulates the provisions do not apply to a transfer by a government, its subdivision or agency.

·                      Specifies filing a termination statement relating to a financing statement that indicates the debtor is a transmitting utility also causes the financing statement to lapse.

·                      Requires the filing office to make available certain financing statement information but not for dates within the previous five business days of the request [currently three days].

·                      Establishes a pre-effective date financing statement as one filed before July 1, 2001.

 

·                      Provides that after July 1, 2001, any amendments to a pre-effective date financing statement must be made in accordance with the law of the jurisdiction governing perfection.

·                      Allows the effectiveness of the pre-effective date financing statement to be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.

·                      Clarifies the requirements that must be met to amend a pre-effective date financing statement after July 1, 2001.

·                      Contains a retroactive effective date from and after June 30, 2001.

 

HB 2025 was amended in the Commerce and Economic Development Committee:

·                      Clarifies the exemption for a transaction by the state, another state or their political subdivisions.

·                      Strikes references to "public finance transactions."

·                      Makes numerous technical, clarifying and conforming changes.

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·                      44th Legislature                                                                                                                       

·                      Second Regular Session                       2                                                         January 29, 2001

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