HB555 Alabama 2012 Session

Under existing law, the Uniform Commercial Code-Secured Transactions, appears as Chapter 9A of Title 7 of the Code of Alabama 1975, and provides a comprehensive program for the regulation of security interests in personal property and fixtures

This bill would amend Alabama's adoption of Article 9 to incorporate changes made to the Uniform Commercial Code. This bill would update Article 9 of the Uniform Commercial Code to provide greater guidance as to the name of an individual debtor to be provided on a financing statement. For business entities and other registered organizations, the bill would clarify that the proper name for protection purposes is the name filed with the state. For an individual debtor, the proper name would be that which appears on the debtor's driver's license, the debtor's actual name, or the debtor's surname and first personal name may be used on the financing statement. Other amendments would change the information required on the financing statements; provide greater protection for an existing secured party having a security interest in after-acquired property when its debtor relocates to another state or merges with another entity; and provide a safe harbor for the transfer of chattel paper in conformance with the Uniform Electronic Transaction Act

To amend Sections 7-9A-102, 7-9A-105, 7-9A-307, 7-9A-311, 7-9A-316, 7-9A-317, 7-9A-326, 7-9A-406, 7-9A-408, 7-9A-502, 7-9A-503, 7-9A-507, 7-9A-515, 7-9A-516, 7-9A-518, and 7-9A-607 of, and to add Part 8, consisting of Sections 7- 7-9A-802, 7-9A-803, 7-9A-804, 7-9A-805, 7-9A-806, 7-9A-807, 7-9A-808, and 7-9A-809, to Chapter 9A of Title 7, of the Code of Alabama 1975, relating to the Uniform Commercial Code-Secured Transactions, including the effectiveness of a security agreement, and attachment of security interest.