A number of amendments to Article 9 of the Uniform Commercial Code (“UCC”) went into effect in many states on July 1, 2013. Similar amendments are pending in a number of other states. These amendments include several changes that have a significant impact on the search and file process for purposes of perfecting a security interest under the UCC.
While there are a number of changes, of particular significance are revisions addressing the “correct” name of an individual debtor or an organization for purposes of a financing statement (UCC Section 9-503). As to individual debtors, the amendments as adopted, or in some cases proposed, by the states are not uniform. Thus, depending on which amendments have been or are adopted in a particular state, there may be variations that could apply depending on which state’s law controls perfection of the security interest. In light of these changes, the actual form of financing statement has also been revised for use in many states (but not all) as of July 1, 2013 (e.g. some states will no longer require organization type and id number to be included in the form), but the forms are not uniform among the states. There are other changes as well (including but not limited to UCC Section 9-102(a)(68) re “public organic record”; Section 9-516 regarding the information required on a financing statement; and with respect to a correction statements (called an “information statement” under the amendments) filed under Section 9-518 of the UCC.
As of this date, approximately 45 states have adopted amendments that were effective July 1, 2013, with legislation pending in other states. As the amendments to Article 9 as adopted are not uniform, specific state statutes should be reviewed as applicable.