Revised Article 9 Timeline and Explanation of Duties
RA9 takes effect July 1, 2001
A.Under RA9, UCC-1s are called "Financing Statements."
B.Under RA9, UCC-3s are called "Amendments" and can be one of the following types:
1. amendment (amending some kind of information, e.g. secured party address)
C. RA9 eliminates Partial Release as an amendment type.
Where to file a UCC document
A. The place to file a FINANCING STATEMENT (UCC-1) remains the same as it did before RA9.
1. There is one exception: if the financing statement deals with "consumer goods," then it should be filed with the Secretary of State.
2. See the flow chart attached.
B. The place to file an AMENDMENT (UCC-3) remains the same as it did before RA9.
1. There is one exception: If the AMENDMENT (UCC-3) deals with "consumer goods" and it is an amendment, continuation, or assignment of a UCC-1 that is at the county recorder's office, the filing should be made with the Secretary of State. When this type of AMENDMENT is filed with the Secretary of State, the filing must be accompanied by a "replacement" financing statement. There is no special form for this. The filer must file a financing statement (UCC-1) with the Secretary of State that has all the regular information asked for on the national (UCC-1) form, plus insert the following:
a) The name of the county recorder office where the original financing statement was filed,
b) The file number of the original financing statement and the last continuation (if applicable),
c) The file date of the original financing statement and the last continuation (if applicable), and
d) a statement saying ' the financing statement described here remains effective.' This information can be put in one of the following places:
a) in the collateral box,
b) on a separate sheet attached to the financing statement,
c) on the national form's addendum sheet in the box 10, marked "miscellaneous"
This is how filings "move" to the Secretary of State's office.
2. If the AMENDMENT (UCC-3) is a termination dealing with consumer goods filed at the county level ( i.e. before July 1, 2001), it should be filed with the county recorder.
3. See the attached flow chart.
A. RA9 requires that filing offices do not correct, change, check, reject or otherwise interfere with filings that have the minimum information required for filing.
B. Minimum information required for filing includes:
1. Debtor name
2. Secured Party name or name of the representative of the secured party
3. Indication of the collateral to be covered
Fixture filings and other non-UCC filings
A. County offices permanently continue to accept fixture filings.
B. Fixture filings will be submitted using the national form.
C. The filing will indicate whether it is a fixture filling or other non-UCC filing (see sections 5 and 6 of the national form and section 13 of the addendum to the National Form).
A. "Open drawer" concept: A large part of the way RA9 relieves the filing officer from making judgments and incurring liability is by letting the customer decide what the status is of a particular UCC lien. Open drawer means all active filings are left on record, whether lapsed or terminated, for the customer to see and interpret on their own. Under this system:
1. Searches shall include all filings that have not lapsed.
2. If a customer requests lapsed filings, all lapsed filings should be given that are up to one year past the lapse date (open drawer concept).
3. Searches should include even those filings that have been terminated up to the date they otherwise would have lapsed (open drawer concept).
4. After one year following lapse, the record is moved to the inactive file and should not be given when a search is conducted on a name.
B. A slightly different way to search
1. Search on the exact name given
a. For organization (corporate type) names, the search will find:
1. an exact hit on the name given.
2. RA9 assumes that the customer will know the exact legal name and that the filing was prepared using the exact legal name
b. For individual names, the search will find
1. the exact name requested.
2. If you search on an initial, all formulations of the name beginning with that initial ( applies to first and middle names only).
e.g. A search on "T.B. Brown" would return: T.B. Brown, Brown, T. Brown, T. Bradley Brown, B.Brown, Thomas B. Brown, Timothy Brown and Bill Brown
3. If only a surname is given, the listing would show all filings with that surname.
C. There is a standard search form ("information request") customers will use to request a search. See attached.
Retention (more "open drawer" concept)
A. RA9 requires recorders and the Secretary of State to keep Financing statements and Amendments "active" for one year after lapse date.
B. If the Financing statement was terminated, the Recorder's office and the Secretary of State must still keep the record on active status for one year past the date the record would have lapsed.
C. After one year following lapse, the record is moved to the inactive file and should not be given when a search is conducted on a name.
A. National Forms must be accepted by the Recorder's office and the Secretary of State for all filings.
B. All National forms are 81/2 inches by 11 inches.
C. Fixture filings may use the National Form.
D. See examples of the Forms enclosed.
Rejections A. Under RA9, a filing may only be rejected for the following reasons:
1. Insufficient fee (note that if the amount submitted is greater than the filing fee, the filing may not be rejected)
2. For amendments
a. no initial financing statement identified, or
b. identifies a statement that has already lapsed
3. Debtor's last name is not identified
4. The financing statement or amendment is being filed in the mortgage records or is a fixture filing and the filing does not include a description of the real property.
5. The name and address of the secured party are not provided.
6. The debtor mailing address is not provided.
7. There is no indication whether the debtor is an individual or organization.
8. For organizations:
a. type of organization,
c. organizational identification number (e.g. EIN )
9. An assignment does not contain the name and mailing address of the assignee.
10. A continuation is not filed within the six-month period when it must be filed.
11. Illegibility leading to impossibility of indexing debtor name.
B. If an Amendment document does not say "Amendment" or does not refer to the original financing statement number, it should be processed like an initial financing statement.
1. Initial filings or amendments 1 or 2 pages in length: $4
2. Initial filings or amendments more than 2 pages in length: $8
3. Additional debtor names: No additional fee
4. Filings performed via the Sos Web interface: no statutory fee.
1. Search fee per debtor name searched on (including all copies given): $5
2. Search performed using the SoS web interface: no statutory fee.
After June 30, 2002
County offices permanently continue to accept fixture filings and other non-UCC filings (see sections 5 and 6 of the national form and section 13 of the addendum to the national form).
All financing statements ( UCC-1s) should be filed at the Secretary of State's office. See attached flow chart.
All Amendments ( UCC-3s) should be filed at the Secretary of State's office.
A. Filers will use the "replacement" filing method described above.
B. See attached flow chart.
July 1, 2006
All remaining financing statements covering consumer goods on file at the county level lapse.
July 1, 2007
All remaining financing statements with farm products as collateral on file at the county level lapse.
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