Risk Management Blog

The 2010 amendments to Revised Article 9 of the Uniform Commercial Code (RA9) are set to go into effect in only a few short months. Some FCS customers and regular readers of our blog have expressed apprehension about the impending changes and have requested additional information. In response, FCS has started a blog series to break down the major points of the 2010 amendments and help eliminate some of the anxiety UCC  filers may be feeling about the changes.

In this, our sixth and final installment of our RA9 Amendment blog series, we discuss the anticipated changes to the UCC1 Financing Statement and UCC3 Change Statement forms.

In its present form, the Uniform Commercial Code includes a list of reasons for which a filing officer is required to reject a UCC document. Under Section 9-516(b)(5)(C) of The Code, a filing office ought to reject a Financing Statement if the named debtor is an organization but the Financing Statement does not list the organization, jurisdiction of organization and/or the organizational ID number of the debtor (boxes 1e, 1f and 1g on the form, respectively.) Although these rules were never uniformly adopted or enforced across all states, most states will reject a UCC document that does not provide this information for a business debtor.

Under the proposed amendments to Revised Article 9, Section 9-516(b)(5)(C) has been deleted, eliminating the need for UCC filers to include the information on their Financing Statements. To support this change, the National UCC1 Financing Statement Form has been updated to delete boxes 1e, 1f and 1g.

In addition to changes regarding required information for organizational debtors, the National UCC Forms have been updated to include renamed fields and improved instructions for completion.

Readers, we want to hear from you! What are your thoughts? How will this amendment change the way you manage, monitor and/or file your UCC’s?

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