Legislative Session number- 81

Bill Name: SF1495

E "Uniform Commercial Code-Secured Transactions"; enacting the revised article
of the uniform commercial code (UCC) regulating secured transactions ARTICLE 1 -
UNIFORM COMMERCIAL CODE, revised article 9 - SECURED TRANSACTIONS Part 1 -
GENERAL PROVISIONS Defining certain terms; regulating purchase money security
interests and secured party control of deposit accounts, electronic chattel
paper, investment property and letter of credit right; providing for the
sufficiency of description of personal or real property; defining the
applicability and scope of the provisions Part 2 - EFFECTIVENESS OF SECURITY
AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY
AGREEMENT Providing for the general effectiveness of security agreements, for
the attachment and enforceability of security interests, for security interests
in after acquired collateral and for certain future advances, for the use or
disposition of collateral, for security interests in the purchase or delivery of
financial assets, for certain rights and duties of secured parties and for
requests for accounting Part 3 - PERFECTION AND PRIORITY Providing for the
determination of law governing perfection and priority of security interests, of
agricultural liens and of security interests in goods covered by a certificate
of title, in deposit accounts, in investment property and in letter of credit
rights; providing for the determination of the location of debtors; regulating
and providing for perfection of security interests and certain liens; regulating
the priority between creditors and purchasers; providing for certain future
advances and for the priority of purchase money security interests, of security
interests in transferred collateral, deposit accounts, investment property,
letters of credit rights, in certain financial assets and security entitlements,
in fixtures and crops and in goods covered by certificate of title and of
security interests created by new debtors; providing for the transfer of money
and of funds from deposit accounts; providing for the priority of certain liens,
for the creation of security interests in accession and for the treatment of
commingled goods; subjecting priorities to subordination; providing for the
rights of banks Part 4 - RIGHTS OF THIRD PARTIES Providing for the alienability
of the rights of debtors; exempting secured parties from liability in contract
or tort for debtor acts or omissions; providing for agreement not to assert
defenses against assignees, for rights acquired by and claims and defenses
against assignees, for modification of assigned contracts, for discharge of
account debtors, for proof of assignment and for restrictions on the creation or
enforcement of security interests in leasehold or residual interests and for the
ineffectiveness of certain restrictions on certain other assignments Part 5 -
FILING Designating certain filing offices; providing for the contents, duration,
effectiveness and filing of financing statements, for the sufficiency of debtor
name, for the indication of collateral, for the filing of consignments, leases,
bailments and other transactions, for the effect of errors and omissions and the
effect of certain events on the effectiveness of financing statements, for
persons entitled to file records, for the effectiveness of filed records, for
the secured party of record, for amendment of financing statements, for
termination statements, for the assignment of powers of secured parties of
record, for the effect of lapsed financing statements, for the effectiveness of
filing, for the effect of indexing errors and for claims relating to inaccurate
or wrongfully filed records; specifying the duties and providing for the
operation of filing offices and for fees; requiring annual reports by the
secretary of state to the legislature on the operation of the filing office;
authorizing the secretary of state to establish satellite offices, providing for
filing and the assignment of filing information, for the maintenance and
retrieval of documents and data and for assurance of the uniformity of services
at the offices Part 6 - DEFAULT Providing for rights after default, for waiver
and variance of rights and duties and for agreement on standards relating to
rights and duties; prescribing the procedure for security agreements covering
real property or fixtures; exempting secured parties from certain duties to
unknown debtors or secondary obligors; providing for the time of default for
agricultural liens, for collection and enforcement by secured parties, for the
application of proceeds of collection or enforcement and liability, for no
surplus or deficiency in sales of certain rights, for the right of secured
parties to take possession and for disposition of collateral after default, for
the application of proceeds of disposition, for explanation of calculation of
surplus or deficiency, for the rights of transferee of collateral, for the
rights and duties of certain secondary obligors, for the transfer of record or
legal title, for acceptance of collateral in full or partial satisfaction of
obligations, for compulsory disposition of collateral, for notice of proposal to
accept collateral, for the effect of acceptance of collateral, for the right to
redeem collateral and for waiver of disposition notice, mandatory disposition
and redemption right; specifying remedies for secured party failure to comply
with the requirements; providing for certain deficiency or surplus actions, for
determination of commercially reasonable conduct and for the nonliability of
secured parties and for the liability of secondary obligors Part 7 - TRANSITION
Specifying the effective date of the provisions; savings clause; providing for
security interests perfected and unperfected and the effectiveness of action
taken before the effective date, providing for the filing of initial financing
statements in lieu of continuation statements, for amendment of preeffective
date financing statements, for persons entitled to file initial financing
statements or continuation statements and for priority; requiring the secretary
of state to adopt rules governing the establishment and operation of satellite
offices under the procedure for adopting exempt rules and authorizing the
secretary of state to adopt expedited rules governing the establishment and
operation of the central filing system, sunsetting the rule adoption authority;
repealing the existing provisions regulating secured transactions ARTICLE 2 -
CONFORMING AMENDMENTS TO OTHER ARTICLESMaking conforming amendments to certain
statutory provisions under the uniform commercial code (UCC) relating to
territorial application of the law, certain definitions, the delegation of
performance and the assignment of contract rights, consignment sales, buyer
rights to goods and to replevin, security interests and rights under lease
contracts, the priority of certain liens, security interests in certain bank
documents and of letters of credit issuers or nominated persons, documents of
title to warehouse goods, commodity contracts, control of security entitlements,
securities intermediary jurisdiction and the rights of purchasers of security
entitlements from entitlement holders (mk, ja)