2001 Legislation
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SENATE BILL NO. 1006 – Uniform Commercial Code,tech corr


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Daily Data Tracking History

S1006................................................by JUDICIARY AND RULES
UNIFORM COMMERCIAL CODE - Amends existing law relating to the Uniform
Commercial Code to make a technical correction.
01/15    Senate intro - 1st rdg - to printing
01/16    Rpt prt - to Jud
01/29    Rpt out - rec d/p - to 2nd rdg
01/30    2nd rdg - to 3rd rdg
02/02    3rd rdg - PASSED - 30-0-4(1 vacant)
      AYES -- Andreason, Boatright, Brandt, Bunderson, Burtenshaw, Cameron,
      Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins,
      Ingram, Ipsen, Keough, King-Barrutia, Lodge, Noh, Richardson, Sandy,
      Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth,
      NAYS -- None
      Absent and excused -- Branch, Darrington, Lee, Risch
      Vacant -- Dist. #4
    Floor Sponsor - Lodge
    Title apvd - to House
02/05    House intro - 1st rdg - to Jud
02/08    Rpt out - rec d/p - to 2nd rdg
02/09    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 68-0-2
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
      Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Crow, Hammond
    Floor Sponsor -- Boe
    Title apvd - to Senate
02/16    To enrol
02/19    Rpt enrol - Pres signed
02/20    Sp signed
02/21    To Governor
02/22    Governor signed
         Session Law Chapter 21
         Effective: 07/01/01

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                       IN THE SENATE
                                    SENATE BILL NO. 1006
                              BY JUDICIARY AND RULES COMMITTEE
  1                                        AN ACT
  4    Be It Enacted by the Legislature of the State of Idaho:
  5        SECTION  1.  That Section 28-2-403, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
  7        28-2-403.  POWER  TO  TRANSFER  --  GOOD  FAITH  PURCHASE  OF   GOODS   --
  8    "ENTRUSTING." (1) A purchaser of goods acquires all title which his transferor
  9    had  or  had  power  to transfer except that a purchaser of a limited interest
 10    acquires rights only to the extent of the interest purchased.  A  person  with
 11    voidable  title  has  power to transfer a good title to a good faith purchaser
 12    for value. When goods have been delivered under a transaction of purchase, the
 13    purchaser has such power even though:
 14        (a)  tThe transferor was deceived as to the identity of the purchaser,; or
 15        (b)  tThe delivery was in exchange for a check which is later dishonored,;
 16        or
 17        (c)  iIt was agreed that the transaction was to be a "cash sale,"; or
 18        (d)  tThe delivery was procured  through  fraud  punishable  as  larcenous
 19        under the criminal law.
 20        (2)  Any  entrusting  of  possession  of  goods to a merchant who deals in
 21    goods of that kind gives him power to transfer all rights of the entruster  to
 22    a buyer in ordinary course of business.
 23        (3)  "Entrusting"  includes any delivery and any acquiescence in retention
 24    of possession regardless of any condition expressed between the parties to the
 25    delivery of or acquiescence and regardless of whether the procurement  of  the
 26    entrusting  or  the possessor's disposition of the goods have has been such as
 27    to be larcenous under the criminal law.
 28        (4)  The rights of other purchasers of goods and  of  lien  creditors  are
 29    governed  by the chapters on Ssecured Ttransactions (chapter 9) and Ddocuments
 30    of Ttitle (chapter 7).

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

This bill is one of a series of bills that the Supreme Court has
recommended in its annual report of "defects in the laws" to the
Governor as required under article V, section 25 of the Idaho

Section 28-2-403(3), Idaho Code, defines the term "entrusting" in
relation to the power to transfer title under the Idaho Uniform
Commercial Code. The purpose of this bill is to change the phrase
"delivery of acquiescence" to read "delivery or acquiescence."

The words "delivery of acquiescence" do not make sense when the
entire sentence in which they appear is read as a whole. The Uniform
Commercial Code published by the National Conference of Commissioners
on Uniform State Laws uses the phrase "delivery or acquiescence,"
which indicates that the word "of" in the Idaho statute is a
typographical error.

                           FISCAL NOTE

This bill will not have an impact on state or local funds.

Contact Person:
Patricia Tobias
Administrative irec:or of the Courts
Idaho Supreme Court
(208) 334-2246

STATEMENT OF PURPOSE/FISCAL NOTE                                                                                                 S1006