SENATE BILL NO. 1382

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Bill Status



S1382................................................by JUDICIARY AND RULES
SECURED TRANSACTIONS - Amends existing law relating to secured transactions
to revise certain conditions under which filing is deemed not to have
occurred; and to provide for the amendment, continuation and termination of
certain preeffective-date financing statements.
                                                                        
02/23    Senate intro - 1st rdg - to printing
02/24    Rpt prt - to Com/HuRes
02/27    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton(Duncan), Darrington, Davis, Gannon,
      Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge,
      Malepeai, Marley, McKenzie, Noble(Anderson), Noh, Pearce, Richardson,
      Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- McWilliams
    Floor Sponsor - Compton(Duncan)
    Title apvd - to House
03/03    House intro - 1st rdg - to Bus
03/10    Rpt out - rec d/p - to 2nd rdg
03/11    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 60-0-10
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Black, Block,
      Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal,
      Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jones, Kellogg,
      Kulczyk, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
      Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Ring, Ringo,
      Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Bedke, Bell, Crow, Jaquet, Lake, Moyle,
      Raybould, Ridinger, Stevenson, Mr. Speaker
    Floor Sponsor - Meyer
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed
03/18    Sp signed
03/19    To Governor
03/24    Governor signed
         Session Law Chapter 304
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1382
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SECURED TRANSACTIONS; AMENDING SECTION 28-9-516,  IDAHO  CODE,  TO
  3        REVISE  CERTAIN  CONDITIONS  UNDER  WHICH  FILING  IS  DEEMED  NOT TO HAVE
  4        OCCURRED; AND AMENDING SECTION 28-9-707, IDAHO CODE, TO  PROVIDE  FOR  THE
  5        AMENDMENT,  CONTINUATION  AND  TERMINATION  OF  CERTAIN  PREEFFECTIVE-DATE
  6        FINANCING STATEMENTS AND TO PROVIDE EFFECTIVE DATE REFERENCES.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That Section 28-9-516, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        28-9-516.  WHAT CONSTITUTES FILING -- EFFECTIVENESS OF FILING. (a)  Except
 11    as  otherwise  provided  in subsection (b) of this section, communication of a
 12    record to a filing office and tender of the filing fee or  acceptance  of  the
 13    record by the filing office constitutes filing.
 14        (b)  Filing  does  not occur with respect to a record that a filing office
 15    refuses to accept because:
 16        (1)  The record is not communicated by a method or medium of communication
 17        authorized by the filing office;
 18        (2)  An amount equal to or greater than the applicable filing fee  is  not
 19        tendered;
 20        (3)  The filing office is unable to index the record because:
 21             (A)  in  the  case of an initial financing statement, the record does
 22             not provide a name for the debtor;
 23             (B)  in the case of an amendment or correction statement, the record:
 24                  (i)   does not  identify  the  initial  financing  statement  as
 25                  required by section 28-9-512 or 28-9-518, as applicable; or
 26                  (ii)  identifies an initial financing statement whose effective-
 27                  ness has lapsed under section 28-9-515;
 28             (C)  in  the case of an initial financing statement that provides the
 29             name of a debtor identified as an individual  or  an  amendment  that
 30             provides a name of a debtor identified as an individual which was not
 31             previously  provided  in  the financing statement to which the record
 32             relates, the record does not identify the debtor's last name; or
 33             (D)  in the case of a record filed, or recorded, in the filing office
 34             described in section 28-9-501(a)(1), the record does  not  provide  a
 35             sufficient description of the real property to which it relates;
 36        (4)  In  the  case  of an initial financing statement or an amendment that
 37        adds a secured party of record, the record does not  provide  a  name  and
 38        mailing address for the secured party of record;
 39        (5)  In  the  case  of an initial financing statement or an amendment that
 40        provides a name of a debtor which  was  not  previously  provided  in  the
 41        financing  statement  to which the amendment relates, except for financing
 42        statements covering farm products and amendments of such financing  state-
 43        ments, the record does not:
                                                                        
                                           2
                                                                        
  1             (A)  provide a mailing address for the debtor;
  2             (B)  indicate whether the debtor is an individual or an organization;
  3             or
  4             (C)  if the financing statement indicates that the debtor is an orga-
  5             nization, provide:
  6                  (i)   a type of organization for the debtor;
  7                  (ii)  a jurisdiction of organization for the debtor; or
  8                  (iii) an  organizational identification number for the debtor or
  9                  indicate that the debtor has none;
 10        (6)  In the case of an assignment reflected in an initial financing state-
 11        ment under  section  28-9-514(a)  or  an  amendment  filed  under  section
 12        28-9-514(b),  the  record  does not provide a name and mailing address for
 13        the assignee;
 14        (7)  In the case of a continuation statement,  the  record  is  not  filed
 15        within the six (6) month period prescribed by section 28-9-515(d);
 16        (8)  In  the  case  of  a  financing statement covering farm products, the
 17        financing statement does not contain all of the information  specified  in
 18        section  28-9-502(e)  and  does  not conform to the official form for farm
 19        products financing statements published by the secretary of state; or
 20        (9)  In the case of an amendment or correction  statement  relating  to  a
 21        financing  statement  covering  farm products, the amendment or correction
 22        statement does not conform to the official form for amendment  or  correc-
 23        tion  statements  relating  to financing statements covering farm products
 24        published by the secretary of state.
 25        (10) The filing office is prohibited from accepting the filing pursuant to
 26        the provisions of section 28-9-516A.
 27        (c)  For purposes of subsection (b) of this section:
 28        (1)  A record does not provide information if the filing office is  unable
 29        to read or decipher the information; and
 30        (2)  A  record  that does not indicate that it is an amendment or identify
 31        an initial financing statement to which it relates, as required by section
 32        28-9-512, 28-9-514 or 28-9-518, is an initial financing statement.
 33        (d)  A record that is communicated to the filing office with tender of the
 34    filing fee, but which the filing office refuses to accept for a  reason  other
 35    than  one set forth in subsection (b) of this section, is effective as a filed
 36    record except as against a purchaser of the collateral which  gives  value  in
 37    reasonable reliance upon the absence of the record from the files.
                                                                        
 38        SECTION  2.  That Section 28-9-707, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
                                                                        
 40        28-9-707.  AMENDMENT OF PREEFFECTIVE-DATE FINANCING  STATEMENT.  A  person
 41    may file an initial financing statement or a continuation statement under this
 42    part if:
 43        (a)  In  this  section,  "preeffective-date  financing  statement" means a
 44    financing statement filed before this act takes effect July 1, 2001.
 45        (b)  After this act takes effect July 1, 2001, a person may add or  delete
 46    collateral  covered  by, continue or terminate the effectiveness of, or other-
 47    wise amend the information provided in, a preeffective-date  financing  state-
 48    ment  only in accordance with the law of the jurisdiction governing perfection
 49    as provided in part 3.  However,  the  effectiveness  of  a  preeffective-date
 50    financing  statement  also may be terminated in accordance with the law of the
 51    jurisdiction in which the financing statement is filed.
 52        (c)  Except as otherwise provided in subsection (d) of  this  section,  if
 53    the  law of this state governs perfection of a security interest, the informa-
                                                                        
                                           3
                                                                        
  1    tion in a preeffective-date financing statement may be amended only if:
  2        (1)  The preeffective-date financing statement and an amendment are  filed
  3        in the office specified in section 28-9-501;
  4        (2)  An  amendment  is  filed in the office specified in section 28-9-501,
  5        concurrently with, or after the filing  in  that  office  of,  an  initial
  6        financing  statement  that  satisfies  the provisions of subsection (c) of
  7        section 28-9-706; or
  8        (3)  An initial financing  statement  that  provides  the  information  as
  9        amended  and  satisfies  the  provisions  of  subsection  (c)  of  section
 10        28-9-706, is filed in the office specified in section 28-9-501.
 11        (d)  If  the  law of this state governs perfection of a security interest,
 12    the effectiveness of a preeffective-date financing statement may be  continued
 13    only  pursuant  to  the  provisions  of  subsections  (d)  and  (f) of section
 14    28-9-705, or section 28-9-706.
 15        (e)  Whether or not the law of this state governs perfection of a security
 16    interest, the effectiveness of a preeffective-date financing  statement  filed
 17    in  this  state  may  be  terminated  by filing a termination statement in the
 18    office in which the preeffective-date financing statement is filed, unless  an
 19    initial financing statement that satisfies the provisions of subsection (c) of
 20    section  28-9-706,  has  been  filed in the office specified by the law of the
 21    jurisdiction governing perfection as provided in part 3 as the office in which
 22    to file a financing statement.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 14026
                                
There are several purposes to this legislation. The first is to
clarify that farm product filings under the Uniform Commercial
Code are treated differently than non-farm filings. The second is
to insert a clarifying cross-reference to Idaho Code 28-9-516A.
The third purpose is to include additions to the transition
provisions that were added by the National Conference of
Commissioners on Uniform State Laws after the Idaho version of
Revised Article Nine of the Uniform Commercial Code was drafted.
These additions ratify the processes currently in use for
amending, continuing and terminating pre-effective date financing
statements.

                          FISCAL IMPACT
                                
There will be no fiscal impact due to this legislation.




Contact
Name:     Chuck Goodenough
          Deputy Secretary of State, Commercial Division
Phone:    208/334-2301

STATEMENT OF PURPOSE/FISCAL NOTE                      S 1382