Bill No.:                     SF0013                                   Drafter:  LGC

LSO No.:                   13LSO-0042                         Effective Date:  7/1/2013

Enrolled Act No.:    SEA0007

Chapter No.:            CH0008

Prime Sponsor:       Joint Corporations, Elections and Political Subdivisions Interim Committee

Catch Title:              Uniform Commercial Code-revisions.

Subject:                     Updates the Uniform Commercial Code.

Summary/Major Elements:

· The act updates the state uniform commercial code to the most recent edition of the model uniform code.

· The act provides procedures for perfecting security interests when collateral is moved between jurisdictions.

· The act expands the definition of “certificate of title” to include records maintained by governmental units that issue certificates of title if the security interest can be indicated on the government copy.

· The act specifies which jurisdiction’s law governs when filing financing statements and when collateral is moved between jurisdictions.

· The act provides for control of electronic chattel paper if a system for evidencing the transfer of interest in the chattel paper reliably establishes the secured party as the person to whom the chattel paper was assigned.

· The act provides transition provisions for security interests filed before the effective date.  A person who holds a perfected security interest prior to July 1, 2013, has one year to perfect that interest under the provisions of the amended act in order to maintain the interest’s perfected status.  In addition, the act provides various methods for continuing the effectiveness of pre-effective date financing statements.