2002 Legislation
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HOUSE BILL NO. 540 – Uniform Commercial Code, revision

HOUSE BILL NO. 540

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H0540...........................................................by BUSINESS
UNIFORM COMMERCIAL CODE - Amends existing law to revise Article 9 of the
Uniform Commercial Code to clarify language and application to the chapter;
and to provide for the effective date of certain financing statements.
                                                                        
02/01    House intro - 1st rdg - to printing
02/04    Rpt prt - to Bus
02/12    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 59-0-11
      AYES -- Aikele, Barraclough, Barrett, Bell, Bieter, Black, Block,
      Boe, Bolz, Bradford, Callister, Campbell, Clark, Collins, Cuddy,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones,
      Kellogg, Kunz, Langford, Loertscher, Mader, Martinez, McKague, Meyer,
      Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould,
      Ridinger, Roberts, Robison, Sali, Schaefer, Shepherd, Smith(33),
      Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Young
      NAYS -- None
      Absent and excused -- Bedke, Bruneel, Crow, Deal, Gould, Kendell,
      Lake, Sellman, Smith(23), Wood, Mr. Speaker
    Floor Sponsor - Gagner
    Title apvd - to Senate
02/18    Senate intro - 1st rdg - to Com/HuRes
03/12    Rpt out - rec d/p - to 2nd rdg
03/13    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
      Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley,
      Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- Hawkins
    Floor Sponsor - Andreason
    Title apvd - to House
    To enrol - Rpt enrol - Sp signed
03/18    Pres signed - to Governor
03/19    Governor signed
         Session Law Chapter 107
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 540
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE UNIFORM COMMERCIAL  CODE;  AMENDING  SECTION  28-9-102,  IDAHO
  3        CODE,  TO FURTHER DEFINE "HEALTH CARE INSURANCE RECEIVABLE"; AMENDING SEC-
  4        TION 28-9-304, IDAHO CODE, TO PROVIDE THAT AN AGREEMENT BETWEEN A BANK AND
  5        ITS CUSTOMER GOVERNING A DEPOSIT ACCOUNT MAY EXPRESSLY PROVIDE THAT A PAR-
  6        TICULAR  JURISDICTION  IS  THE  BANK'S  JURISDICTION;   AMENDING   SECTION
  7        28-9-309,  IDAHO  CODE, TO PROVIDE THAT SECURITY INTERESTS IN A SALE BY AN
  8        INDIVIDUAL OF AN ACCOUNT THAT IS A RIGHT TO PAYMENT OF WINNERS IN  A  LOT-
  9        TERY OR OTHER GAME OF CHANCE ARE PERFECTED WHEN THEY ATTACH; AMENDING SEC-
 10        TION  28-9-515,  IDAHO  CODE,  TO REVISE THE DURATION AND EFFECTIVENESS OF
 11        CERTAIN FINANCING STATEMENTS; AMENDING SECTION 28-9-626,  IDAHO  CODE,  TO
 12        REMOVE  LANGUAGE  EXEMPTING CONSUMER TRANSACTIONS FROM RULES APPLICABLE TO
 13        ACTIONS IN WHICH DEFICIENCY OR  SURPLUS  IS  IN  ISSUE;  AMENDING  SECTION
 14        28-9-705, IDAHO CODE, TO PROVIDE FOR THE EFFECTIVENESS OF FINANCING STATE-
 15        MENTS  FILED  AS  FIXTURE, TIMBER OR MINERAL FILINGS; AND AMENDING SECTION
 16        39-1450, IDAHO CODE, TO PROVIDE THAT THE  SECTION  EXPRESSLY  GOVERNS  THE
 17        CREATION,  PERFECTION, PRIORITY AND ENFORCEMENT OF SECURITY INTERESTS CRE-
 18        ATED BY THE IDAHO HEALTH FACILITIES AUTHORITY AND TO MAKE A TECHNICAL COR-
 19        RECTION.
                                                                        
 20    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 21        SECTION 1.  That Section 28-9-102, Idaho Code, be, and the same is  hereby
 22    amended to read as follows:
                                                                        
 23        28-9-102.  DEFINITIONS AND INDEX OF DEFINITIONS. (a)  In this chapter:
 24        (1)  "Accession"  means  goods that are physically united with other goods
 25        in such a manner that the identity of the original goods is not lost.
 26        (2)  "Account," except as used in "account for," means a right to  payment
 27        of  a  monetary  obligation, whether or not earned by performance: (i) for
 28        property that has been or is to be sold, leased,  licensed,  assigned,  or
 29        otherwise disposed of; (ii) for services rendered or to be rendered; (iii)
 30        for  a  policy  of  insurance issued or to be issued; (iv) for a secondary
 31        obligation incurred or to be incurred; (v) for energy provided  or  to  be
 32        provided;  (vi)  for  the use or hire of a vessel under a charter or other
 33        contract; (vii) arising out of the use of  a  credit  or  charge  card  or
 34        information  contained  on or for use with the card; or (viii) as winnings
 35        in a lottery or other game of chance operated or  sponsored  by  a  state,
 36        governmental  unit of a state, or a person licensed or authorized to oper-
 37        ate the game by a state or governmental unit of a state. The term includes
 38        health care insurance receivables. The term does not include:  (i)  rights
 39        to  payment  evidenced  by chattel paper or an instrument; (ii) commercial
 40        tort claims; (iii) deposit accounts; (iv) investment property; (v)  letter
 41        of credit rights or letters of credit; or (vi) rights to payment for money
 42        or  funds  advanced or sold, other than rights arising out of the use of a
 43        credit or charge card or information contained on  or  for  use  with  the
                                                                        
                                           2
                                                                        
  1        card.
  2        (3)  "Account  debtor"  means  a  person  obligated on an account, chattel
  3        paper, or general intangible. The term does not include persons  obligated
  4        to pay a negotiable instrument, even if the instrument constitutes part of
  5        chattel paper.
  6        (4)  "Accounting," except as used in "accounting for," means a record:
  7             (A)  authenticated by a secured party;
  8             (B)  indicating the aggregate unpaid secured obligations as of a date
  9             not  more than thirty-five (35) days earlier or thirty-five (35) days
 10             later than the date of the record; and
 11             (C)  identifying  the  components  of  the  obligations in reasonable
 12             detail.
 13        (5)  "Agricultural lien" means an interest, other than a  security  inter-
 14        est, in farm products:
 15             (A)  which secures payment or performance of an obligation for:
 16                  (i)   goods  or services furnished in connection with a debtor's
 17                  farming operation; or
 18                  (ii)  rent on real property leased by  a  debtor  in  connection
 19                  with its farming operation;
 20             (B)  which is created by statute in favor of a person that:
 21                  (i)   in  the ordinary course of its business furnished goods or
 22                  services to a debtor in connection with a debtor's farming oper-
 23                  ation; or
 24                  (ii)  leased real property to a debtor in  connection  with  the
 25                  debtor's farming operation; and
 26             (C)  whose  effectiveness  does not depend on the person's possession
 27             of the personal property.
 28        (6)  "As-extracted collateral" means:
 29             (A)  oil, gas, or other minerals  that  are  subject  to  a  security
 30             interest that:
 31                  (i)   is  created by a debtor having an interest in the minerals
 32                  before extraction; and
 33                  (ii)  attaches to the minerals as extracted; or
 34             (B)  accounts arising out of the sale at the wellhead or minehead  of
 35             oil,  gas,  or  other  minerals  in  which the debtor had an interest
 36             before extraction.
 37        (7)  "Authenticate" means:
 38             (A)  to sign; or
 39             (B)  to execute or otherwise adopt a symbol, or encrypt or  similarly
 40             process  a record in whole or in part, with the present intent of the
 41             authenticating person to identify the person and adopt  or  accept  a
 42             record.
 43        (8)  "Bank" means an organization that is engaged in the business of bank-
 44        ing.   The  term  includes  savings  banks, savings and loan associations,
 45        credit unions and trust companies.
 46        (9)  "Cash proceeds"  means  proceeds  that  are  money,  checks,  deposit
 47        accounts, or the like.
 48        (10) "Certificate  of  title" means a certificate of title with respect to
 49        which a statute provides for the security interest in question to be indi-
 50        cated on the  certificate  as  a  condition  or  result  of  the  security
 51        interest's  obtaining  priority  over  the  rights of a lien creditor with
 52        respect to the collateral.
 53        (11) "Chattel paper" means a record or records that evidence both a  mone-
 54        tary  obligation  and  a  security  interest in specific goods, a security
 55        interest in specific goods and software used  in  the  goods,  a  security
                                                                        
                                           3
                                                                        
  1        interest  in  specific  goods and license of software used in the goods, a
  2        lease of specific goods, or a lease of specific goods and license of soft-
  3        ware used in the goods. In this paragraph, "monetary obligation"  means  a
  4        monetary  obligation  secured  by  the  goods or owed under a lease of the
  5        goods and includes a monetary obligation with respect to software used  in
  6        the  goods.  The  term  does  not include: (i) charters or other contracts
  7        involving the use or hire of a vessel; or (ii)  records  that  evidence  a
  8        right  to  payment  arising  out  of the use of a credit or charge card or
  9        information contained on or for use with the card.  If  a  transaction  is
 10        evidenced  by records that include an instrument or series of instruments,
 11        the group of records taken together constitutes chattel paper.
 12        (12) "Collateral" means the property subject to  a  security  interest  or
 13        agricultural lien. The term includes:
 14             (A)  proceeds to which a security interest attaches;
 15             (B)  accounts,  chattel  paper,  payment  intangibles, and promissory
 16             notes that have been sold; and
 17             (C)  goods that are the subject of a consignment.
 18        (13) "Commercial tort claim" means a claim arising in tort with respect to
 19        which:
 20             (A)  the claimant is an organization; or
 21             (B)  the claimant is an individual and the claim:
 22                  (i)   arose in the course of the claimant's business or  profes-
 23                  sion; and
 24                  (ii)  does not include damages arising out of personal injury to
 25                  or the death of an individual.
 26        (14) "Commodity account" means an account maintained by a commodity inter-
 27        mediary in which a commodity contract is carried for a commodity customer.
 28        (15) "Commodity contract" means a commodity futures contract, an option on
 29        a  commodity  futures contract, a commodity option, or another contract if
 30        the contract or option is:
 31             (A)  traded on or subject to the rules of a board of trade  that  has
 32             been  designated as a contract market for such a contract pursuant to
 33             federal commodities laws; or
 34             (B)  traded on a foreign commodity board of trade, exchange, or  mar-
 35             ket,  and  is  carried on the books of a commodity intermediary for a
 36             commodity customer.
 37        (16) "Commodity customer" means a person for which a commodity  intermedi-
 38        ary carries a commodity contract on its books.
 39        (17) "Commodity intermediary" means a person that:
 40             (A)  is  registered  as  a  futures commission merchant under federal
 41             commodities law; or
 42             (B)  in the ordinary course of its  business  provides  clearance  or
 43             settlement  services for a board of trade that has been designated as
 44             a contract market pursuant to federal commodities law.
 45        (18) "Communicate" means:
 46             (A)  to send a written or other tangible record;
 47             (B)  to transmit a record by any means agreed  upon  by  the  persons
 48             sending and receiving the record; or
 49             (C)  in  the  case  of  transmission  of  a  record to or by a filing
 50             office, to transmit a record by any means prescribed by filing office
 51             rule.
 52        (19) "Consignee" means a merchant to which goods are delivered in  a  con-
 53        signment.
 54        (20) "Consignment" means a transaction, regardless of its form, in which a
 55        person delivers goods to a merchant for the purpose of sale and:
                                                                        
                                           4
                                                                        
  1             (A)  the merchant:
  2                  (i)   deals  in  goods  of that kind under a name other than the
  3                  name of the person making delivery;
  4                  (ii)  is not an auctioneer; and
  5                  (iii) is not generally known by its  creditors  to  be  substan-
  6                  tially engaged in selling the goods of others;
  7             (B)  with  respect to each delivery, the aggregate value of the goods
  8             is one thousand dollars ($1,000) or more at the time of delivery;
  9             (C)  the goods are not consumer goods  immediately  before  delivery;
 10             and
 11             (D)  the transaction does not create a security interest that secures
 12             an obligation.
 13        (21) "Consignor"  means  a  person that delivers goods to a consignee in a
 14        consignment.
 15        (22) "Consumer debtor" means a debtor in a consumer transaction.
 16        (23) "Consumer goods" means goods that are used or bought for use  primar-
 17        ily for personal, family or household purposes.
 18        (24) "Consumer goods transaction" means a consumer transaction in which:
 19             (A)  an  individual incurs an obligation primarily for personal, fam-
 20             ily or household purposes; and
 21             (B)  a security interest in consumer goods secures the obligation.
 22        (25) "Consumer obligor" means an obligor who  is  an  individual  and  who
 23        incurred  the  obligation  as part of a transaction entered into primarily
 24        for personal, family or household purposes.
 25        (26) "Consumer transaction" means a transaction in which: (i) an  individ-
 26        ual  incurs an obligation primarily for personal, family or household pur-
 27        poses; (ii) a security interest secures the obligation; and (iii) the col-
 28        lateral is held or acquired primarily for personal,  family  or  household
 29        purposes. The term includes consumer goods transactions.
 30        (27) "Continuation  statement" means an amendment of a financing statement
 31        which:
 32             (A)  identifies, by its file number, the initial financing  statement
 33             to which it relates; and
 34             (B)  indicates that it is a continuation statement for, or that it is
 35             filed  to  continue  the  effectiveness  of, the identified financing
 36             statement.
 37        (28) "Debtor" means:
 38             (A)  a person having an interest, other than a security  interest  or
 39             other  lien, in the collateral, whether or not the person is an obli-
 40             gor;
 41             (B)  a seller of accounts,  chattel  paper,  payment  intangibles  or
 42             promissory notes; or
 43             (C)  a consignee.
 44        (29) "Deposit account" means a demand, time, savings, passbook, or similar
 45        account  maintained  with  a  bank.   The term does not include investment
 46        property or accounts evidenced by an instrument.
 47        (30) "Document" means a document  of  title  or  a  receipt  of  the  type
 48        described in section 28-7-201(2).
 49        (31) "Electronic  chattel paper" means chattel paper evidenced by a record
 50        or records consisting of information stored in an electronic medium.
 51        (32) "Encumbrance" means a right, other than  an  ownership  interest,  in
 52        real  property.  The term includes mortgages and other liens on real prop-
 53        erty.
 54        (33) "Equipment" means goods other than inventory, farm products  or  con-
 55        sumer goods.
                                                                        
                                           5
                                                                        
  1        (34) "Farm products" means goods, other than standing timber, with respect
  2        to which the debtor is engaged in a farming operation and which are:
  3             (A)  crops grown, growing, or to be grown, including:
  4                  (i)   crops produced on trees, vines and bushes; and
  5                  (ii)  aquatic goods produced in aquacultural operations;
  6             (B)  livestock,  born  or unborn, including aquatic goods produced in
  7             aquacultural operations;
  8             (C)  supplies used or produced in a farming operation; or
  9             (D)  products of crops or livestock in their unmanufactured states.
 10        (35) "Farming operation" means raising, cultivating, propagating,  fatten-
 11        ing, grazing, or any other farming, livestock, or aquacultural operation.
 12        (36) "File  number"  means  the  number  assigned  to an initial financing
 13        statement pursuant to section 28-9-519(a).
 14        (37) "Filing office" means an office designated in section 28-9-501 as the
 15        place to file a financing statement.
 16        (38) "Filing office  rule"  means  a  rule  adopted  pursuant  to  section
 17        28-9-526.
 18        (39) "Financing  statement"  means a record or records composed of an ini-
 19        tial financing statement and any filed  record  relating  to  the  initial
 20        financing statement.
 21        (40) "Fixture  filing"  means the filing of a financing statement covering
 22        goods  that  are  or  are  to  become  fixtures  and  satisfying   section
 23        28-9-502(a) and (b). The term includes the filing of a financing statement
 24        covering  goods  of a transmitting utility which are or are to become fix-
 25        tures.
 26        (41) "Fixtures" means goods that have become so related to particular real
 27        property that an interest in them arises under real property law.
 28        (42) "General intangible" means any personal property, including things in
 29        action, other  than  accounts,  chattel  paper,  commercial  tort  claims,
 30        deposit accounts, documents, goods, instruments, investment property, let-
 31        ter  of  credit  rights,  letters of credit, money, and oil, gas, or other
 32        minerals before extraction. The  term  includes  payment  intangibles  and
 33        software.
 34        (43) "Good  faith"  means honesty in fact and the observance of reasonable
 35        commercial standards of fair dealing.
 36        (44) "Goods" means all things that are movable when  a  security  interest
 37        attaches. The term includes: (i) fixtures; (ii) standing timber that is to
 38        be  cut  and  removed  under  a conveyance or contract for sale; (iii) the
 39        unborn young of animals; (iv) crops grown, growing, or to be  grown,  even
 40        if  the crops are produced on trees, vines or bushes; and (v) manufactured
 41        homes. The term also includes a computer program embedded in goods and any
 42        supporting information provided in connection with a transaction  relating
 43        to  the program if: (i) the program is associated with the goods in such a
 44        manner that it customarily is considered part of the  goods;  or  (ii)  by
 45        becoming the owner of the goods, a person acquires a right to use the pro-
 46        gram  in  connection  with the goods. The term does not include a computer
 47        program embedded in goods that consist solely of the medium in  which  the
 48        program  is  embedded.   The  term also does not include accounts, chattel
 49        paper, commercial tort claims, deposit accounts, documents, general intan-
 50        gibles, instruments, investment property, letter of credit rights, letters
 51        of credit, money, or oil, gas, or other minerals before extraction.
 52        (45) "Governmental unit" means a subdivision, agency, department,  county,
 53        parish,  municipality,  or  other  unit  of  the  government of the United
 54        States, a state, or a foreign country. The term includes  an  organization
 55        having  a  separate corporate existence if the organization is eligible to
                                                                        
                                           6
                                                                        
  1        issue debt on which interest is exempt from income taxation under the laws
  2        of the United States.
  3        (46) "Health care insurance receivable" means  an  interest  in  or  claim
  4        under  a  policy  of  insurance  which is a right to payment of a monetary
  5        obligation for health care goods or services provided or to be provided.
  6        (47) "Instrument" means a negotiable instrument or any other writing  that
  7        evidences a right to the payment of a monetary obligation, is not itself a
  8        security  agreement or lease, and is of a type that in the ordinary course
  9        of business is transferred by  delivery with any necessary indorsement  or
 10        assignment.  The term does not include: (i) investment property; (ii) let-
 11        ters of credit; or (iii) writings that evidence a right to payment arising
 12        out of the use of a credit or charge card or information contained  on  or
 13        for use with the card.
 14        (48) "Inventory" means goods, other than farm products, which:
 15             (A)  are leased by a person as lessor;
 16             (B)  are  held by a person for sale or lease or to be furnished under
 17             a contract of service;
 18             (C)  are furnished by a person under a contract of service; or
 19             (D)  consist of raw materials, work in process, or materials used  or
 20             consumed in a business.
 21        (49) "Investment  property"  means  a  security,  whether  certificated or
 22        uncertificated, security entitlement, securities account,  commodity  con-
 23        tract or commodity account.
 24        (50) "Jurisdiction  of organization," with respect to a registered organi-
 25        zation, means the jurisdiction under whose law the organization  is  orga-
 26        nized.
 27        (51) "Letter  of  credit  right"  means  a right to payment or performance
 28        under a letter of credit, whether or not the beneficiary has  demanded  or
 29        is  at  the time entitled to demand payment or performance.  The term does
 30        not include the right of a beneficiary to demand  payment  or  performance
 31        under a letter of credit.
 32        (52) "Lien creditor" means:
 33             (A)  a  creditor that has acquired a lien on the property involved by
 34             attachment, levy, or the like;
 35             (B)  an assignee for benefit of creditors from the  time  of  assign-
 36             ment;
 37             (C)  a trustee in bankruptcy from the date of the filing of the peti-
 38             tion; or
 39             (D)  a receiver in equity from the time of appointment.
 40        (53) "Manufactured  home"  means  a structure, transportable in one (1) or
 41        more sections, which, in the traveling mode, is eight  (8)  body  feet  or
 42        more  in width or forty (40) body feet or more in length, or, when erected
 43        on site, is three hundred twenty (320) or more square feet, and  which  is
 44        built on a permanent chassis and designed to be used as a dwelling with or
 45        without  a  permanent foundation when connected to the required utilities,
 46        and includes the plumbing, heating, air conditioning, and electrical  sys-
 47        tems  contained therein. The term includes any structure that meets all of
 48        the requirements of this paragraph except the size requirements  and  with
 49        respect  to  which  the  manufacturer  voluntarily  files  a certification
 50        required by the United States secretary of housing and  urban  development
 51        and  complies  with the standards established under title 42 of the United
 52        States Code.
 53        (54) "Manufactured home transaction" means a secured transaction:
 54             (A)  that creates a purchase-money security interest  in  a  manufac-
 55             tured home, other than a manufactured home held as inventory; or
                                                                        
                                           7
                                                                        
  1             (B)  in  which  a  manufactured  home, other than a manufactured home
  2             held as inventory, is the primary collateral.
  3        (55) "Mortgage" means a consensual interest in  real  property,  including
  4        fixtures, which secures payment or performance of an obligation.
  5        (56) "New  debtor"  means a person that becomes bound as debtor under sec-
  6        tion 28-9-203(d) by  a  security  agreement  previously  entered  into  by
  7        another person.
  8        (57) "New  value"  means:  (i) money; (ii) money's worth in property, ser-
  9        vices or new credit; or (iii) release by a transferee of  an  interest  in
 10        property  previously    transferred  to  the transferee. The term does not
 11        include an obligation substituted for another obligation.
 12        (58) "Noncash proceeds" means proceeds other than cash proceeds.
 13        (59) "Obligor" means a person that, with respect to an obligation  secured
 14        by  a  security interest in or an agricultural lien on the collateral: (i)
 15        owes payment or other performance of the  obligation;  (ii)  has  provided
 16        property  other than the collateral to secure payment or other performance
 17        of the obligation; or (iii) is otherwise accountable in whole or  in  part
 18        for  payment  or  other  performance  of the obligation. The term does not
 19        include issuers or nominated persons under a letter of credit.
 20        (60) "Original debtor," except as used in  section  28-9-310(c),  means  a
 21        person  that,  as debtor, entered into a security agreement to which a new
 22        debtor has become bound under section 28-9-203(d).
 23        (61) "Payment intangible" means  a  general  intangible  under  which  the
 24        account debtor's principal obligation is a monetary obligation.
 25        (62) "Person related to," with respect to an individual, means:
 26             (A)  the spouse of the individual;
 27             (B)  a brother, brother-in-law, sister, or sister-in-law of the indi-
 28             vidual;
 29             (C)  an  ancestor  or  lineal  descendant  of  the  individual or the
 30             individual's spouse; or
 31             (D)  any other relative, by blood or marriage, of the  individual  or
 32             the individual's spouse who shares the same home with the individual.
 33        (63) "Person related to," with respect to an organization, means:
 34             (A)  a  person  directly or indirectly controlling, controlled by, or
 35             under common control with the organization;
 36             (B)  an officer or director of, or a person performing similar  func-
 37             tions with respect to, the organization;
 38             (C)  an  officer or director of, or a person performing similar func-
 39             tions with respect to, a person described in subparagraph (A) of this
 40             paragraph;
 41             (D)  the spouse of an individual described in subparagraph  (A),  (B)
 42             or (C) of this paragraph; or
 43             (E)  an individual who is related by blood or marriage to an individ-
 44             ual  described in subparagraph (A), (B), (C) or (D) of this paragraph
 45             and shares the same home with the individual.
 46        (64) "Proceeds" means the following property:
 47             (A)  whatever is acquired upon the sale, lease, license, exchange  or
 48             other disposition of collateral;
 49             (B)  whatever  is collected on, or distributed on account of, collat-
 50             eral;
 51             (C)  rights arising out of collateral;
 52             (D)  to the extent of the value of collateral, claims arising out  of
 53             the  loss, nonconformity, or interference with the use of, defects or
 54             infringement of rights in, or damage to, the collateral; or
 55             (E)  to the extent of the value of collateral and to the extent  pay-
                                                                        
                                           8
                                                                        
  1             able  to the debtor or the secured party, insurance payable by reason
  2             of the loss or nonconformity of, defects or  infringement  of  rights
  3             in, or damage to, the collateral.
  4        (65) "Promissory note" means an instrument that evidences a promise to pay
  5        a  monetary  obligation,  does  not evidence an order to pay, and does not
  6        contain an acknowledgment by a bank that the bank has received for deposit
  7        a sum of money or funds.
  8        (66) "Proposal" means a record authenticated  by  a  secured  party  which
  9        includes the terms on which the secured party is willing to accept collat-
 10        eral in full or partial satisfaction of the obligation it secures pursuant
 11        to sections 28-9-620, 28-9-621 and 28-9-622.
 12        (67) "Public-finance  transaction"  means a secured transaction in connec-
 13        tion with which:
 14             (A)  debt securities are issued;
 15             (B)  all or a portion of the securities issued have an initial stated
 16             maturity of at least twenty (20) years; and
 17             (C)  the debtor, obligor, secured party, account debtor or other per-
 18             son obligated on collateral, assignor or assignee of a secured  obli-
 19             gation,  or assignor or assignee of a security interest is a state or
 20             a governmental unit of a state.
 21        (68) "Pursuant to commitment," with respect to an advance  made  or  other
 22        value  given  by  a  secured  party, means pursuant to the secured party's
 23        obligation, whether or not a subsequent event of default  or  other  event
 24        not  within  the  secured  party's control has relieved or may relieve the
 25        secured party from its obligation.
 26        (69) "Record," except as used in "for record,"  "of  record,"  "record  or
 27        legal title," and "record owner," means information that is inscribed on a
 28        tangible medium or which is stored in an electronic or other medium and is
 29        retrievable in perceivable form.
 30        (70) "Registered  organization"  means  an  organization  organized solely
 31        under the law of a single state or the United States and as to  which  the
 32        state or the United States must maintain a public record showing the orga-
 33        nization to have been organized.
 34        (71) "Secondary obligor" means an obligor to the extent that:
 35             (A)  the obligor's obligation is secondary; or
 36             (B)  the  obligor  has a right of recourse with respect to an obliga-
 37             tion secured by collateral against the debtor,  another  obligor,  or
 38             property of either.
 39        (72) "Secured party" means:
 40             (A)  a  person  in whose favor a security interest is created or pro-
 41             vided for under a security agreement, whether or not  any  obligation
 42             to be secured is outstanding;
 43             (B)  a person that holds an agricultural lien;
 44             (C)  a consignor;
 45             (D)  a  person  to which accounts, chattel paper, payment intangibles
 46             or promissory notes have been sold;
 47             (E)  a trustee, indenture trustee, agent, collateral agent, or  other
 48             representative  in  whose  favor  a security interest or agricultural
 49             lien is created or provided for; or
 50             (F)  a person that holds a security interest  arising  under  section
 51             28-2-401, 28-2-505, 28-2-711(3), 28-4-210, 28-5-120 or 28-12-508(5).
 52        (73) "Security  agreement" means an agreement that creates or provides for
 53        a security interest.
 54        (74) "Send," in connection with a record or notification, means:
 55             (A)  to deposit in the mail, deliver for transmission, or transmit by
                                                                        
                                           9
                                                                        
  1             any other usual means of  communication,  with  postage  or  cost  of
  2             transmission  provided for, addressed to any address reasonable under
  3             the circumstances; or
  4             (B)  to cause the record or notification to be  received  within  the
  5             time that it would have been received if properly sent under subpara-
  6             graph (A) of this paragraph.
  7        (75) "Software"  means  a  computer program and any supporting information
  8        provided in connection with a transaction relating  to  the  program.  The
  9        term  does not include  a computer program that is included in the defini-
 10        tion of goods.
 11        (76) "State" means a state of the United States, the District of Columbia,
 12        Puerto Rico, the United States Virgin Islands, or any territory or insular
 13        possession subject to the jurisdiction of the United States.
 14        (77) "Supporting obligation" means a letter of credit right  or  secondary
 15        obligation that supports the payment or performance of an account, chattel
 16        paper, a document, a general intangible, an instrument or investment prop-
 17        erty.
 18        (78) "Tangible chattel paper" means chattel paper evidenced by a record or
 19        records consisting of information that is inscribed on a tangible medium.
 20        (79) "Termination  statement"  means an amendment of a financing statement
 21        which:
 22             (A)  identifies, by its file number, the initial financing  statement
 23             to which it relates; and
 24             (B)  indicates  either that it is a termination statement or that the
 25             identified financing statement is no longer effective.
 26        (80) "Transmitting utility" means a person primarily engaged in the  busi-
 27        ness of:
 28             (A)  operating a railroad, subway, street railway, or trolley bus;
 29             (B)  transmitting communications electrically, electromagnetically or
 30             by light;
 31             (C)  transmitting goods by pipeline or sewer; or
 32             (D)  transmitting  or  producing and transmitting electricity, steam,
 33             gas or water.
 34        (b)  The following definitions in other chapters apply to this chapter:
 35        "Applicant"                                              section 28-5-102.
 36        "Beneficiary"                                            section 28-5-102.
 37        "Broker"                                                 section 28-8-102.
 38        "Certificated security"                                  section 28-8-102.
 39        "Check"                                                  section 28-3-104.
 40        "Clearing corporation"                                   section 28-8-102.
 41        "Contract for sale"                                      section 28-2-106.
 42        "Customer"                                               section 28-4-104.
 43        "Entitlement holder"                                     section 28-8-102.
 44        "Financial asset"                                        section 28-8-102.
 45        "Holder in due course"                                   section 28-3-302.
 46        "Issuer" (with respect to a letter of credit
 47          or letter of credit right)                             section 28-5-102.
 48        "Issuer" (with respect to a security)                    section 28-8-201.
 49        "Lease"                                                 section 28-12-103.
 50        "Lease agreement"                                       section 28-12-103.
 51        "Lease contract"                                        section 28-12-103.
 52        "Leasehold interest"                                    section 28-12-103.
 53        "Lessee"                                                section 28-12-103.
 54        "Lessee in ordinary course of business"                 section 28-12-103.
 55        "Lessor"                                                section 28-12-103.
                                                                        
                                           10
                                                                        
  1        "Lessor's residual interest"                            section 28-12-103.
  2        "Letter of credit"                                       section 28-5-102.
  3        "Merchant"                                               section 28-2-104.
  4        "Negotiable instrument"                                  section 28-3-104.
  5        "Nominated person"                                       section 28-5-102.
  6        "Note"                                                   section 28-3-104.
  7        "Proceeds of a letter of credit"                         section 28-5-114.
  8        "Prove"                                                  section 28-3-103.
  9        "Sale"                                                   section 28-2-106.
 10        "Securities account"                                     section 28-8-501.
 11        "Securities intermediary"                                section 28-8-102.
 12        "Security"                                               section 28-8-102.
 13        "Security certificate"                                   section 28-8-102.
 14        "Security entitlement"                                   section 28-8-102.
 15        "Uncertificated security"                                section 28-8-102.
 16        (c)  Chapter 1, title 28, contains general definitions and  principles  of
 17    construction and interpretation applicable throughout this chapter.
                                                                        
 18        SECTION  2.  That Section 28-9-304, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        28-9-304.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS  IN
 21    DEPOSIT  ACCOUNTS.  (a) The local law of a bank's jurisdiction governs perfec-
 22    tion, the effect of perfection or nonperfection, and the priority of  a  secu-
 23    rity interest in a deposit account maintained with that bank.
 24        (b)  The  following  rules determine a bank's jurisdiction for purposes of
 25    this part:
 26        (1)  If an agreement between the bank and the debtor its customer  govern-
 27        ing  the deposit account expressly provides that a particular jurisdiction
 28        is the bank's jurisdiction for purposes of this part, this chapter, or the
 29        uniform commercial code, that jurisdiction is the bank's jurisdiction.
 30        (2)  If paragraph (1) of this subsection does not apply and  an  agreement
 31        between  the bank and its customer governing the deposit account expressly
 32        provides that the agreement is governed by the law of a particular  juris-
 33        diction, that jurisdiction is the bank's jurisdiction.
 34        (3)  If  neither  paragraph  (1) nor (2) of this subsection applies and an
 35        agreement between the bank and its customer governing the deposit  account
 36        expressly  provides that the deposit account is maintained at an office in
 37        a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
 38        (4)  If none of the preceding paragraphs apply, the bank's jurisdiction is
 39        the jurisdiction in which the office identified in an account statement as
 40        the office serving the customer's account is located.
 41        (5)  If none of the preceding paragraphs apply, the bank's jurisdiction is
 42        the jurisdiction in which the  chief  executive  office  of  the  bank  is
 43        located.
                                                                        
 44        SECTION  3.  That Section 28-9-309, Idaho Code, be, and the same is hereby
 45    amended to read as follows:
                                                                        
 46        28-9-309.  SECURITY INTEREST  PERFECTED  UPON  ATTACHMENT.  The  following
 47    security interests are perfected when they attach:
 48        (1)  A  purchase-money  security  interest  in  consumer  goods, except as
 49    otherwise provided in section 28-9-311(b) with respect to consumer goods  that
 50    are subject to a  statute or treaty described in section 28-9-311(a);
 51        (2)  An  assignment  of  accounts or payment intangibles which does not by
                                                                        
                                           11
                                                                        
  1    itself or in conjunction with other assignments to the same assignee  transfer
  2    a  significant part of the assignor's outstanding accounts or payment intangi-
  3    bles;
  4        (3)  A sale of a payment intangible;
  5        (4)  A sale of a promissory note;
  6        (5)  A security interest created by the assignment of a health care insur-
  7    ance receivable to the provider of the health care goods or services;
  8        (6)  A  security  interest  arising  under  section  28-2-401,   28-2-505,
  9    28-2-711(3)  or  28-12-508(5), until the debtor obtains possession of the col-
 10    lateral;
 11        (7)  A security interest  of  a  collecting  bank  arising  under  section
 12    28-4-210;
 13        (8)  A  security  interest  of an issuer or nominated person arising under
 14    section 28-5-120;
 15        (9)  A security interest arising in the  delivery  of  a  financial  asset
 16    under section 28-9-206(c);
 17        (10) A  security  interest  in  investment property created by a broker or
 18    securities intermediary;
 19        (11) A security interest in a commodity contract or  a  commodity  account
 20    created by a commodity intermediary;
 21        (12) An  assignment for the benefit of all creditors of the transferor and
 22    subsequent transfers by the assignee thereunder; and
 23        (13) A security interest created by an assignment of a beneficial interest
 24    in a decedent's estate; and
 25        (14) A sale by an individual of an account that is a right to  payment  of
 26    winnings in a lottery or other game of chance.
                                                                        
 27        SECTION  4.  That Section 28-9-515, Idaho Code, be, and the same is hereby
 28    amended to read as follows:
                                                                        
 29        28-9-515.  DURATION AND EFFECTIVENESS OF FINANCING STATEMENT -- EFFECT  OF
 30    LAPSED  FINANCING  STATEMENT.  (a)  Except  as  otherwise  provided in section
 31    28-9-705(g) and subsections (b), (e), (f) and (g) of  this  section,  a  filed
 32    financing statement is effective for a period of five (5) years after the date
 33    of filing.
 34        (b)  Except  as otherwise provided in subsections (e), (f) and (g) of this
 35    section, an initial financing statement filed  in  connection  with  a  public
 36    finance transaction or manufactured home transaction is effective for a period
 37    of thirty (30) years after the date of filing if it indicates that it is filed
 38    in  connection with a public finance transaction or manufactured home transac-
 39    tion.
 40        (c)  The effectiveness of a filed financing statement lapses on the  expi-
 41    ration  of the period of its effectiveness unless before the lapse a continua-
 42    tion statement is filed pursuant to  subsection  (d)  of  this  section.  Upon
 43    lapse,  a financing statement ceases to be effective and any security interest
 44    or agricultural lien that was perfected by  the  financing  statement  becomes
 45    unperfected, unless the security interest is perfected otherwise. If the secu-
 46    rity  interest  or  agricultural  lien  becomes  unperfected upon lapse, it is
 47    deemed never to have been perfected as against a purchaser of  the  collateral
 48    for value.
 49        (d)  Except  as otherwise provided in section 28-9-705(g), aA continuation
 50    statement may be filed only within six (6) months before the expiration of the
 51    five (5) year  period specified in subsection  (a)  of  this  section  or  the
 52    thirty (30) year period specified in subsection (b) of this section, whichever
 53    is applicable.
                                                                        
                                           12
                                                                        
  1        (e)  Except  as  otherwise  provided in sections 28-9-510 and 28-9-705(g),
  2    upon timely filing of a continuation statement, the effectiveness of the  ini-
  3    tial  financing  statement continues for a period of five (5) years commencing
  4    on the day on which the financing statement would have become  ineffective  in
  5    the  absence  of  the filing. Upon the expiration of the five (5) year period,
  6    the financing statement lapses in the same manner as  provided  in  subsection
  7    (c)  of this section, unless, before the lapse, another continuation statement
  8    is filed pursuant to subsection (d) of this section.  Succeeding  continuation
  9    statements  may  be  filed in the same manner to continue the effectiveness of
 10    the initial financing statement.
 11        (f)  If a debtor is a transmitting utility and a filed financing statement
 12    so indicates, the financing statement is effective until a termination  state-
 13    ment is filed.
 14        (g)  A  record  of  a  mortgage that is effective as a financing statement
 15    filed as a fixture filing under section 28-9-502(c)  remains  effective  as  a
 16    financing  statement  filed as a fixture filing until the mortgage is released
 17    or satisfied of record or its effectiveness otherwise  terminates  as  to  the
 18    real property.
                                                                        
 19        SECTION  5.  That Section 28-9-626, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        28-9-626.  ACTION IN WHICH DEFICIENCY OR SURPLUS IS IN ISSUE. In an action
 22    arising from a transaction, other than a consumer transaction,  in  which  the
 23    amount of a deficiency or surplus is in issue, the following rules apply:
 24        (a)  A secured party need not prove compliance with the provisions of this
 25    part relating to collection, enforcement, disposition or acceptance unless the
 26    debtor or a secondary obligor places the secured party's compliance in issue.
 27        (b)  If  the  secured  party's  compliance is placed in issue, the secured
 28    party has the burden of establishing that the collection, enforcement,  dispo-
 29    sition or acceptance was conducted in accordance with this part.
 30        (c)  Except  as otherwise provided in section 28-9-628, if a secured party
 31    fails to prove that the collection, enforcement, disposition or acceptance was
 32    conducted in accordance with the provisions of this part relating  to  collec-
 33    tion,  enforcement,  disposition or acceptance, the liability of a debtor or a
 34    secondary obligor for a deficiency is limited to an amount by which the sum of
 35    the secured obligation, expenses and attorney's fees exceeds the greater of:
 36        (1)  The proceeds of the collection, enforcement,  disposition  or  accep-
 37        tance; or
 38        (2)  The  amount of proceeds that would have been realized had the noncom-
 39        plying secured party proceeded in accordance with the provisions  of  this
 40        part relating to collection, enforcement, disposition or acceptance.
 41        (d)  For purposes of subsection (c)(2) of this section, the amount of pro-
 42    ceeds that would have been realized is equal to the sum of the secured obliga-
 43    tion,  expenses  and  attorney's fees unless the secured party proves that the
 44    amount is less than that sum.
 45        (e)  If a deficiency or surplus is calculated under  section  28-9-615(f),
 46    the  debtor  or obligor has the burden of establishing that the amount of pro-
 47    ceeds of the disposition is significantly below the range  of  prices  that  a
 48    complying  disposition  to  a  person  other  than the secured party, a person
 49    related to the secured party, or a secondary obligor would have brought.
                                                                        
 50        SECTION 6.  That Section 28-9-705, Idaho Code, be, and the same is  hereby
 51    amended to read as follows:
                                                                        
                                           13
                                                                        
  1        28-9-705.  EFFECTIVENESS  OF  ACTION  TAKEN BEFORE EFFECTIVE DATE. (a)  If
  2    action, other than the filing of a financing statement, is taken  before  this
  3    act  takes effect and the action would have resulted in priority of a security
  4    interest over the rights of a person that becomes  a  lien  creditor  had  the
  5    security  interest become enforceable before this act takes effect, the action
  6    is effective to perfect a security  interest  that  attaches  under  this  act
  7    within one (1) year after this act takes effect. An attached security interest
  8    becomes  unperfected one (1) year after this act takes effect unless the secu-
  9    rity interest becomes a perfected security interest under this act before  the
 10    expiration of that period.
 11        (b)  The  filing  of a financing statement before this act takes effect is
 12    effective to perfect a security interest to the extent the filing  would  sat-
 13    isfy the applicable requirements for perfection under this act.
 14        (c)  This act does not render ineffective an effective financing statement
 15    that,  before  this  act  takes  effect, is filed and satisfies the applicable
 16    requirements for perfection under the law of the jurisdiction  governing  per-
 17    fection  as provided in former section 28-9-103.  However, except as otherwise
 18    provided in subsections (d) and (e) of this section and section 28-9-706,  the
 19    financing statement ceases to be effective at the earlier of:
 20        (1)  The  time  the  financing statement would have ceased to be effective
 21        under the law of the jurisdiction in which it is filed; or
 22        (2)  June 30, 2006.
 23        (d)  The filing of a continuation statement after this  act  takes  effect
 24    does  not  continue  the effectiveness of the financing statement filed before
 25    this act takes effect.  However, upon the  timely  filing  of  a  continuation
 26    statement  after  this  act takes effect and in accordance with the law of the
 27    jurisdiction governing perfection as provided in part 3, the effectiveness  of
 28    a  financing  statement  filed  in the same office in that jurisdiction before
 29    this act takes effect continues for the period provided by  the  law  of  that
 30    jurisdiction.
 31        (e)  Subsection  (c)(2)  of  this section applies to a financing statement
 32    that, before this act takes effect, is filed against  a  transmitting  utility
 33    and  satisfies the applicable requirements for perfection under the law of the
 34    jurisdiction governing perfection as provided in former section 28-9-103  only
 35    to  the  extent that part 3 provides that the law of a jurisdiction other than
 36    jurisdiction in which the financing statement is filed governs perfection of a
 37    security interest in collateral covered by the financing statement.
 38        (f)  A financing statement  that  includes  a  financing  statement  filed
 39    before this act takes effect and a continuation statement filed after this act
 40    takes  effect  is  effective only to the extent that it satisfies the require-
 41    ments of part 5 for an initial financing statement.
 42        (g)  A financing statement filed as a fixture, timber  or  mineral  filing
 43    before  July  1, 2001 (except for a record of mortgage which is effective as a
 44    financing statement filed as a fixture filing) shall  cease  to  be  effective
 45    after  June  30,  2006. The effectiveness of such a financing statement may be
 46    continued by filing a continuation statement between January 1, 2006, and June
 47    30, 2006, inclusive. The new five (5) year effective period for such a financ-
 48    ing statement, as provided in section 28-9-515, shall commence on the date  of
 49    filing such continuation statement.
                                                                        
 50        SECTION  7.  That  Section 39-1450, Idaho Code, be, and the same is hereby
 51    amended to read as follows:
                                                                        
 52        39-1450.  SECURITY FOR BONDS AND NOTES. The principal of and  interest  on
 53    any  bonds  or notes issued by the authority may be secured by a pledge of, or
                                                                        
                                           14
                                                                        
  1    security interest in, the revenues, rentals and receipts out of which the same
  2    may be made payable or from other moneys available therefor and not  otherwise
  3    pledged  or  used as security and may be secured by a trust indenture or mort-
  4    gage or deed of trust (including assignment of leases or other contract rights
  5    of the authority thereunder) covering all or any part of the  facilities  from
  6    which  the revenues, rentals or receipts so pledged or used as security may be
  7    derived, including any enlargements of and additions to  any  such  facilities
  8    thereafter  made.  The  resolution  under which the bonds are authorized to be
  9    issued and any such trust indenture, mortgage or deed of trust may contain any
 10    agreements and provisions which shall be a part of the contract with the hold-
 11    ers of the bonds or notes to be authorized as to:
 12        (a)  Pledging or providing a security interest in all or any part  of  the
 13    revenues  of a facility or any revenue-producing contract or contracts made by
 14    the authority with any individual, partnership, corporation or association  or
 15    other  body, public or private, to secure the payment of the bonds or notes or
 16    of any particular issue of bonds, subject to such agreements with  noteholders
 17    or bondholders as may then exist;
 18        (b)  Respecting the maintenance of the properties covered thereby;
 19        (c)  The  fixing  and  collection  of rents, fees, and other charges to be
 20    charged, and the amounts to be raised in each year thereby, and  the  use  and
 21    disposition of the revenues;
 22        (d)  The  setting  aside,  creation and maintenance of special and reserve
 23    funds and sinking funds and the use and disposition of the revenues;
 24        (e)  Limitations on the right of the authority or its  agent  to  restrict
 25    and regulate the use of facilities;
 26        (f)  Limitations on the purpose to which the proceeds of sale of any issue
 27    of  bonds or notes then or thereafter to be issued may be applied and pledging
 28    or providing a security interest in such proceeds to secure the payment of the
 29    bonds or notes or any issue of the bonds or notes;
 30        (g)  Limitations on the issuance of additional bonds, the terms upon which
 31    additional bonds may be issued and secured and the  refunding  of  outstanding
 32    bonds;
 33        (h)  The  procedure, if any, by which the terms of any contract with bond-
 34    holders or noteholders may be amended or abrogated, the  amount  of  bonds  or
 35    notes  the holders of which must consent thereto, and the manner in which such
 36    consent may be given;
 37        (i)  Limitations on the amount of moneys derived from  a  facility  to  be
 38    expended for operating, administrative or other expenses of the authority;
 39        (j)  Defining  the  acts  or  omissions  to  act  which shall constitute a
 40    default in the duties of the authority to holders of its obligations and  pro-
 41    viding the rights and remedies of such holders in the event of a default;
 42        (k)  The  mortgaging of a facility and the site thereof for the purpose of
 43    securing the bondholders or noteholders; and
 44        (l)  Such other additional covenants, agreements, and  provisions  as  are
 45    judged advisable or necessary by the authority for the security of the holders
 46    of such bonds or notes.
 47        Any  pledge made by the authority shall be valid and binding from the time
 48    when the pledge is made; the revenues, moneys,  or  property  so  pledged  and
 49    thereafter  received by the authority shall immediately be subject to the lien
 50    of such pledge without any  physical delivery thereof or further act, and  the
 51    lien  of  such pledge shall be valid and binding as against all parties having
 52    claims of any kind in tort, contract or otherwise against the authority, irre-
 53    spective of whether such parties have notice thereof. Neither  the  resolution
 54    nor  any  other instrument by which a pledge is created need be recorded. Each
 55    pledge, agreement, lease, indenture, mortgage and deed of trust made  for  the
                                                                        
                                           15
                                                                        
  1    benefit or security of any of the bonds of the authority shall continue effec-
  2    tive until the principal of and interest on the bonds for the benefit of which
  3    the  same  were  made shall have been fully paid or provision for such payment
  4    duly made. In the event of default in such payment or in any agreements of the
  5    authority made as a part of the contract under which the  bonds  were  issued,
  6    whether  contained  in  the  resolutions authorizing the bonds or in any trust
  7    indenture, mortgage or deed of trust executed as security therefor, said  pay-
  8    ment  or  agreement  may  be  enforced by suit, mandamus, the appointment of a
  9    receiver in equity or by foreclosure of any mortgage and deed of trust, or any
 10    one (1) or more of said remedies.
 11        In addition to the foregoing, bonds of the authority may be secured  by  a
 12    pooling  of leases whereby the authority may assign its rights, as lessor, and
 13    pledge rents under two (2) or more leases of the facilities with  two  (2)  or
 14    more  participating  health  institutions,  as lessees respectively, upon such
 15    terms as may be provided for in the resolutions of the authority or as may  be
 16    provided for in a trust indenture authorized by the authority.
 17        (m)  Notwithstanding  any  other  provision  of chapter 9, title 28, Idaho
 18    Code, to the contrary, this section expressly governs  the  creation,  perfec-
 19    tion,  priority  and  enforcement  of a security interest created by the Idaho
 20    health facilities authority.

Statement of Purpose / Fiscal Impact


	              STATEMENT OF PURPOSE
                          RS 11764

This legislation amends and clarifies certain sections of Article 9 
to the Uniform Commercial Code which was totally revised and adopted 
by the Legislature in 2001 and makes a technical correction to a 
related provision of Idaho Code.


                        FISCAL IMPACT


None



Contact
Name:	Dale G. Higer, Commission on Uniform State Laws
Phone:	387 4288



STATEMENT OF PURPOSE/FISCAL NOTE                H 540