Recently, a few credit unions have asked me whether the UCC has been updated lately. The answer is yes.
With all of the regulatory changes at the federal level it is easy to overlook changes happening within your own state. However, over 40 states across the country have adopted amendments to the Uniform Commercial Code (UCC) Article 9. The uniform effective date for these amendments was July 1, 2013.
The amendments were created in 2010 and designed to clarify filing issues and other matters that have arisen since the previous revision in 1998.
The recent amendments provide more detailed guidance regarding the name of the individual debtor that should be used in a financing statement. The amendments offer two alternatives; however, most states chose Alternative A. Keep in mind you may also need to know which option your neighboring states have adopted.
- Alternative A requires a credit union to use the debtor’s driver’s license issued by the state where the financing statement is filed, the debtor’s name as it appears on the driver’s license is the name required to be used on the financing statement. If the debtor does not have a driver’s license, either the debtor’s actual name or the debtor’s surname and first personal name may be used on the financing statement.
- Alternative B provides that the debtor’s driver’s license name, the debtor’s actual name or the debtor’s surname and the first personal name may be used on the financing statement.
Other amendments provided guidance to better determine the debtor’s name when the debtor is a corporation, limited liability company or limited partnership as well as collateral held by a trust or decedent’s estate. The Uniform Law Commission is a great place to get additional information on these amendments.
And don’t forget to use your state’s most recent UCC filing forms.