Proposed Amendments to Article 9 of the UCCApril 5, 2012 — 1,270 views
The Uniform Commercial Code (UCC) was recommended for adoption by all 50 states in the United States. Drafted by the Uniform Law Commission and the American Law Institute, it was created in an effort to harmonize commercial transactions in the U.S. and the laws regarding sales. It is important to harmonize state laws for these transactions mainly because sales often cross state lines. Article 9 Uniform Commercial Code governs how personal property can be used to secure debt.
There are some variations in Article 9's application among the states. However, its guidelines are fairly uniform across the board. However, certain amendments to Article 9 have been proposed to provide additional protection to secured creditors, with a recommended effective date of July 1, 2013.
The proposals are meant to correct ambiguities that have been found in Article 9, problems largely stemming from the variations in language from state to state. These amendments will help streamline the process of commercial transactions.
According to Schnader Attorneys-at-Law, the most notable proposals include the opportunity for secured creditors to file information statements, the treatment of after-acquired collateral if a debtor relocates or merges into a new entity and the correct name of the debtor.