Print Friendly SENATE BILL NO. 1182 – Financing statements, requirements
SENATE BILL NO. 1182
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S1182................................................by JUDICIARY AND RULES
FINANCING STATEMENTS - Amends existing law relating to financing statements
covering farm products to revise requirements applicable to financing
statements and amendments to financing statements; and to permit the filing
of correction statements in connection with financing statements covering
02/27 Senate intro - 1st rdg - to printing
02/28 Rpt prt - to Jud
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/08 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Davis
Title apvd - to House
03/09 House intro - 1st rdg - to Bus
03/16 Rpt out - rec d/p - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
03/22 3rd rdg - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker(Luker), Marriott, Mathews,
McGeachin, Mortimer, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24),
Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Moyle
Floor Sponsor - Patrick
Title apvd - to Senate
03/23 To enrol
03/26 Rpt enrol - Pres signed - Sp signed - To Governor
03/30 Governor signed
Session Law Chapter 317
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1182
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO FINANCING STATEMENTS COVERING FARM PRODUCTS; AMENDING SECTION
3 28-9-502, IDAHO CODE, TO REVISE REQUIREMENTS APPLICABLE TO FINANCING
4 STATEMENTS AND AMENDMENTS TO FINANCING STATEMENTS; AND AMENDING SECTION
5 28-9-518, IDAHO CODE, TO PERMIT THE FILING OF CORRECTION STATEMENTS IN
6 CONNECTION WITH FINANCING STATEMENTS COVERING FARM PRODUCTS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 28-9-502, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 28-9-502. CONTENTS OF FINANCING STATEMENT -- RECORD OF MORTGAGE AS
11 FINANCING STATEMENT -- TIME OF FILING FINANCING STATEMENT -- FARM PRODUCTS.
12 (a) Subject to subsection (b) of this section, a financing statement is suffi-
13 cient only if it:
14 (1) Provides the name of the debtor;
15 (2) Provides the name of the secured party or a representative of the
16 secured party; and
17 (3) Indicates the collateral covered by the financing statement.
18 (b) Except as otherwise provided in section 28-9-501(b), to be suffi-
19 cient, a financing statement that covers as-extracted collateral or timber to
20 be cut, or which is filed as a fixture filing and covers goods that are or are
21 to become fixtures, must satisfy subsection (a) of this section and also:
22 (1) Indicate that it covers this type of collateral;
23 (2) Indicate that it is to be filed in the real property records;
24 (3) Provide a description of the real property to which the collateral is
25 related sufficient to give constructive notice of a mortgage under the law
26 of this state if the description were contained in a record of the mort-
27 gage of the real property; and
28 (4) If the debtor does not have an interest of record in the real prop-
29 erty, provide the name of a record owner.
30 (c) A record of a mortgage is effective, from the date of recording, as a
31 financing statement filed as a fixture filing or as a financing statement cov-
32 ering as-extracted collateral or timber to be cut only if:
33 (1) The record indicates the goods or accounts that it covers;
34 (2) The goods are or are to become fixtures related to the real property
35 described in the record or the collateral is related to the real property
36 described in the record and is as-extracted collateral or timber to be
38 (3) The record satisfies the requirements for a financing statement in
39 this section other than an indication that it is to be filed in the real
40 property records; and
41 (4) The record is recorded.
42 (d) A financing statement may be filed before a security agreement is
43 made or a security interest otherwise attaches.
1 (e) A financing statement covering farm products is sufficient if it:
2 contains the following information:
3 (1) Contains t The names and addresses of both the debtor and the secured
5 (2) The debtor's signature Is signed, authorized or otherwise authenti-
6 cated by the debtor;
7 (3) The name, address and signature of the secured party;
8 (4) Contains t The debtor's social security number of the debtor or other
9 unique number, combination of numbers and letters, or other identifier
10 selected by the secretary of state using a selection system or method
11 approved by the secretary of agriculture, or in the case of a debtor doing
12 business other than as an individual, the debtor's internal revenue ser-
13 vice taxpayer identification number or other approved unique identifier;
14 ( 54) A Contains a description by category of the farm products subject to
15 the security interest and the amount of such products, where applicable;
16 ( 65) A reasonable description of the real estate where Indicates the
17 county or counties in which the farm products are produced or located.
18 This provision may be satisfied by a designation of the county or coun-
19 ties, and a legal description is not required.
20 (f) A financing statement described in subsection (e) of this section
21 covering farm products must be amended in writing within three (3) months, and
22 similarly signed, authorized or authenticated, and filed, to reflect any mate-
23 rial changes. In the event such form is not incorporated within the financing
24 statement, the effectiveness and continuation of that form is to be treated as
25 if it were a part of the financing statement with which it is filed.
26 (g) If the financing statement covering farm products, or an amendment to
27 such statement, is filed electronically, neither the debtor's nor the secured
28 party's signature shall be required.
29 (h) In order to terminate a financing statement covering farm products,
30 the amendment must be terminated in writing and signed or authenticated by the
31 secured party.
32 SECTION 2. That Section 28-9-518, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 28-9-518. CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED RECORD. (a) A
35 person may file in the filing office a correction statement with respect to a
36 record indexed there under the person's name if the person believes that the
37 record is inaccurate or was wrongfully filed.
38 (b) A correction statement must:
39 (1) Identify the record to which it relates by the file number assigned
40 to the initial financing statement to which the record relates;
41 (2) Indicate that it is a correction statement; and
42 (3) Provide the basis for the person's belief that the record is inaccu-
43 rate and indicate the manner in which the person believes the record
44 should be amended to cure any inaccuracy or provide the basis for the
45 person's belief that the record was wrongfully filed.
46 (c) The filing of a correction statement does not affect the effective-
47 ness of an initial financing statement or other filed record.
48 (d) A correction statement may be filed in connection with the previous
49 filing of a financing statement covering farm products under section 28-9-502.
STATEMENT OF PURPOSE
The intent of this legislation is to provide an alternative to the
requirement that farm product financing statements under the
Uniform Commercial Code utilize Social Security Account Numbers or
Taxpayer Identification Numbers for debtors. The alternative will
be an approved unique identifier as selected by the Secretary of
State and approved by the Secretary of Agriculture pursuant to the
Food Security Act, 7 U.S.C. 1631(c), and 71 F.R. 56338. The bill
also eliminates the requirements for signatures on farm product
financing statements and amendments, which facilitates electronic
filing of these documents with the Secretary of State.
No fiscal impact is anticipated as a result of this legislation.
Name: Chuck Goodenough, Deputy Secretary of State, Commercial
Senator Bart Davis
STATEMENT OF PURPOSE/FISCAL NOTE S 1182