Are You Ready for UCC-Financing Statement “Fireworks”
Not really “fireworks” but important changes in UCC-1 form and the name to be used with an individual debtor are coming on July 1, 2013. Are You Ready?
In Illinois, Public Act 97-1034 changes the form of the Financing Statement to be filed under the Illinois Commercial Code. The new form, which can be found beginning July 1 at the Illinois Secretary of State’s website ( www.cyberdriveillinois.com ), no longer includes Section 1(d) through 1(g) and Section 2(d) through 2(g) thereof which required type of organization, jurisdiction of organization and the tax identification number/social security number. This change in the UCC-1 form reflects removal of Section 9-516(5)(c) from Article 9.
THE IMPORTANT POINT IS THIS: The new UCC-1 form must be used in Illinois from and after July 1, 2013. The Secretary of State’s office will reject the old form. All “old forms” should be purged as continued use thereof will result in the rejection of the form delaying lien perfection perhaps to the Bank’s detriment.
The other notable change in Illinois, effective July 1, 2013, is that for individual debtors, the name will be deemed correct and sufficient on a UCC-1 only if it matches up exactly with the debtor’s name on his/her unexpired driver’s license issued by the State of Illinois. If the individual does not have an Illinois driver’s license or the license is expired, then that individual’s personal surname should be used. This would be the individual’s name from another form of identification such as a birth certificate, social security card or even the loan application form.
In Missouri, a similar statute to Illinois Public Act 97-1034 has been enacted into law as well with an effective date of August 28, 2013 as opposed to July 1, 2013. Therefore, the “old form” UCC-1 should still be used for filings in Missouri until August 28, 2013, with the new form only being used thereafter.
More details on the other changes effected by these new laws will be forthcoming in another bullet next week.
The foregoing is not intended to be legal advice, but rather, to provide accurate information regarding banking law and regulatory matters. For more information, please contact any member of our banking practice group: James A. Rapp ( jrapp@srnm.com ), William M. McCleery, Jr. ( wmccleery@srnm.com ), Michael A. Bickhaus ( mbickhaus@srnm.com ), Ted Niemann ( tniemann@srnm.com ), Alok Patel ( apatel@srnm.com ), or Joseph Ott ( jott@srnm.com ) at (217) 223-3030 or visit us on the web at www.srnm.com. We invite and welcome all questions and comments.