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05/18/2024 01:09 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=10238
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: December 19, 2012 01:55 PM
From: Representative Glen R. Grell
To: All House members
Subject: Uniform Commercial Code -- Prior House Bill 2159
 
MEMORANDUM

TO: All House Members

FROM: Representative Glen R. Grell

DATE: December 19, 2012

SUBJECT: Cosponsor Legislation – Uniform Commercial Code (prior HB 2159)

In the near future, I plan to introduce amendments to Pennsylvania’s Uniform Commercial Code (UCC), Article 9, which governs secured transactions. The amendments were jointly recommended to the states by the American Law Institute (ALI) and the Uniform Law Commission (ULC) in 2010.

Article 9 has been in effect in Pennsylvania since 1953 when our Commonwealth became the first state to enact the UCC. Each time the Official Text has been revised, Pennsylvania has enacted the recommended updates.

Article 9 was substantially revised in 1998, and the 1998 revisions are in effect in all states and the District of Columbia. The 2010 amendments to Article 9 modify the existing statute to respond to a variety of technical issues regarding the filing of financing statements and other matters that have arisen in practice following over a decade of experience with the revised Article 9.

The 2010 amendments provide greater guidance as to the name and identity of a debtor to be provided on a financing statement. For business entities and other registered organizations, including business trusts, the amendments clarify that the proper name for perfection purposes is the name filed with the state and provided on the organization’s charter or other constitutive documents. For individual debtors, the amendments require a filer to use the version of the debtor’s name on the debtor's most recently issued and unexpired driver's license, or non-driver’s license identification card issued by the Bureau of Motor Vehicles. If the debtor does not have a driver's license, the filer must use either the individual’s name or the individual’s surname and first personal name. For non-business trusts, the amendments require financing statements to be filed using the name of the trust, or the name of the settler of testator and sufficient information to distinguish the trust from other trusts created by the same person.

The amendments also:
  1. Continue perfection of a security interest for four months after a debtor moves to a new jurisdiction with respect to all collateral covered by a financing statement, rather than only collateral owned at the time of the move;
  2. Continues perfection of a security interest for four months following a merger;
  3. Adopts new and simplified versions of standard forms that may be used to file financing statements adopted by the International Association of Corporate Administrators;
  4. Authorizes a secured party to file an information statement in the records of the Department of State if the secured party believes that an amendment to its financing statement was not authorized; and
  5. Makes a variety of revisions to law to facilitate to electronic transactions.
The amendments are slated to have a uniform effective date of July 1, 2013, so as to allow states to adopt the amendments uniformly and have them become operative simultaneously (thereby avoiding unnecessary conflicts and confusion with respect to interstate transactions).Accordingly, adoption of the amendments during the 2011-12 Session of the General Assembly is important.

This legislation passed the House unanimously on June 25, 2012 but failed to be considered by the Senate Appropriations Committee prior to the end of session.

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Introduced as HB24