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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
]]]] 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
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