Bill Summary for S 844 (2011-2012)

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Summary date: 

May 22 2012

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 844 (Public) Filed Monday, May 21, 2012
Intro. by Hartsell.

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Bill summary

2010 UCC Article 9 Amendments. Amends several defined terms in GS 25-9-102(a) and adds a definition for public organic record. Amends GS 25-9-105 to clarify that a secured party has control of electronic chattel paper if a system showing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. Makes conforming changes. Adds two subsections to GS 25-9-316 (concerning change in governing law) to set out rules applicable to collateral and to financing statements filed against an original debtor, after a change in jurisdiction. Makes a conforming change. Amends GS 25-9-406(i) to add that the provision making legal restrictions on the assignment of security interests ineffective does not apply to an assignment or transfer that is prohibited by the NC State Lottery Act. Amends GS 25-9-502(c)(3) to add that a record of mortgage must provide the debtor’s individual name to satisfy the requirement for a financing statement. Amends GS 25-9-503 (name of debtor and secured party) to modify the way the debtor’s name must be provided on a financing statement. Adds guidance regarding the name of the decedent and multiple drivers for licenses or identification cards issued by the state. Adds two subsections to GS 25-9-518, permitting specified persons to file an information statement for a filed record, provided the statement meets listed conditions. References updated versions of the financing statement and amendment form in GS 25-9-521. Makes additional technical and clarifying changes to several provisions in Article 9 (Secured Transactions) of GS Chapter 25.
Transition Provisions. Details the effect of this act on security interests perfected and on interests not perfected before the act’s effective date. Specifies the effectiveness of certain actions, related to financial statements, taken before the act’s effective date. Lists persons entitled to file an initial financing statement or continuation statement. States that the relative priorities of claims established before the act’s effective date are determined under Article 9 as the article existed before this act became effective.
Effective Date. Specifies that the act applies to transactions and liens within the act’s scope, except as provided under the transition provisions, even if the transaction or lien was entered into before the act becomes effective. States that the act does not affect an action or proceeding commenced before the act’s effective date. Effective July 1, 2013.