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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 effectJuly 1, 2001. 45 (b) After this act takes effectJuly 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