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H.B. 247







Sponsor: Blake D. Chard

             9      CORRECTIONS.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          70A-9-402, as last amended by Chapter 172, Laws of Utah 1996
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 70A-9-402 is amended to read:
             15           70A-9-402. Formal requisites of financing statement -- Amendments -- Mortgage as
             16      financing statement -- Form of financing statement.
             17          (1) (a) A financing statement is sufficient if it:
             18          (i) is prepared in typewritten or machine printed form;
             19          [(i)] (ii) gives the names of the debtor and the secured party;
             20          [(ii)] (iii) is signed by the debtor;
             21          [(iii)] (iv) gives an address of the secured party from which information concerning the
             22      security interest may be obtained;
             23          [(iv)] (v) gives a mailing address of the debtor; and
             24          [(v)] (vi) contains a statement indicating the types, or describing the items, of collateral.
             25          (b) To facilitate the indexing of financing statements, persons filing financing statements
             26      are urged to supply either separately or as a part of the financing statement the Social Security
             27      number of the debtor or the federal income tax employer's identification number if the debtor is

             28      not an individual.
             29          (c) A financing statement may be filed before a security agreement is made or a security
             30      interest otherwise attaches.
             31          (d) When the financing statement covers crops growing or to be grown, the statement must
             32      also contain a legal description of the real estate concerned and the name of the record owner.
             33          (e) When the financing statement covers timber to be cut or covers minerals or the like
             34      (including oil and gas) or accounts subject to Subsection 70A-9-103 (5), or when the financing
             35      statement is filed as a fixture filing (Section 70A-9-313 ) and the collateral is goods which are or
             36      are to become fixtures, the statement must also comply with Subsection (5).
             37          (f) A copy of the security agreement is sufficient as a financing statement if it contains the
             38      above information and is signed by the debtor. A carbon, photographic, or other reproduction of
             39      a security agreement or a financing statement is sufficient as a financing statement if the security
             40      agreement so provides or if the original has been filed in this state.
             41          (g) A financing statement meeting the requirements of this section may be:
             42          (i) filed electronically; and
             43          (ii) signed electronically in the form provided by rule made by the Division of
             44      Corporations and Commercial Code in accordance with Title 63, Chapter 46a, Utah Administrative
             45      Rulemaking Act.
             46          (2) A financing statement which otherwise complies with Subsection (1) is sufficient when
             47      it is signed by the secured party instead of the debtor if it is filed to perfect a security interest in:
             48          (a) collateral already subject to a security interest in another jurisdiction when it is brought
             49      into this state, or when the debtor's location is changed to this state. Such a financing statement
             50      must state that the collateral was brought into this state or that the debtor's location was changed
             51      to this state under such circumstances;
             52          (b) proceeds under Section 70A-9-306 if the security interest in the original collateral was
             53      perfected. Such a financing statement must describe the original collateral;
             54          (c) collateral as to which the filing has lapsed; or
             55          (d) collateral acquired after a change of name, identity, or corporate structure of the debtor
             56      (Subsection (7)).
             57          (3) A form substantially as follows is sufficient to comply with Subsection (1):
             58          Name of debtor (or assignor)    ______________________________________________

             59          Address _____________________________________________________________
             60          Debtors Social Security number or employers identification number
             61          _____________________________________________________________________
             62          Name of secured party (or assignee)    ________________________________________
             63          Address ______________________________________________________________
             64          1.    This financing statement covers the following types (or items) of property:
             65              (Describe) ______________________________________________________
             66          2.    (If collateral is crops) The above-described crops are growing or are to be grown
             67              on:
             68              (Describe real estate and specify name of record owner) __________________
             69          3.    (If applicable) The above goods are to become fixtures on (Provide legal
             70      description of real estate) and this financing statement is to be recorded in the real
             71      estate records of the county recorder. (If the debtor does not have an interest of
             72      record.) The name of the record owner is
             73      ________________________________________________
             74          4.    (If products of collateral are claimed) Products of the collateral are also covered.
             75          (Use            ___________________________________________________
             76          whichever                Signature of Debtor (or Assignor)
             77          is            ___________________________________________________
             78          applicable)                Signature of Secured Party (or Assignee)
             79          (4) (a) Except as provided in Subsection (4)(b), a financing statement may be amended by
             80      filing a writing signed by both the debtor and the secured party.
             81          (b) A secured party may amend the secured party's name or address on a financing
             82      statement by filing a writing signed by the secured party.
             83          (c) An amendment does not extend the period of effectiveness of a financing statement.
             84          (d) If any amendment adds collateral, it is effective as to the added collateral only from
             85      the filing date of the amendment.
             86          (e) In this chapter, unless the context otherwise requires, the term "financing statement"
             87      means the original financing statement and any amendments.
             88          (5) A financing statement covering timber to be cut or covering minerals or the like
             89      (including oil and gas) or accounts subject to Subsection 70A-9-103 (5), or a financing statement

             90      filed as a fixture filing (Section 70A-9-313 ) where the debtor is not a transmitting utility, must
             91      show that it covers this type of collateral, must recite that it is to be recorded in the real estate
             92      records of the county recorder, and the financing statement (and any amendments of financing
             93      statements, continuation statements, termination statements, statements of assignment, or
             94      statements of release covering the same collateral) must contain a legal description of the real
             95      estate and must specify the name of the record owner.
             96          (6) (a) A mortgage is effective as a financing statement filed as a fixture filing from the
             97      date of its recording if:
             98          (i) the goods are described in the mortgage by item or type;
             99          (ii) the goods are or are to become fixtures related to the real estate described in the
             100      mortgage;
             101          (iii) the mortgage complies with the requirements for a financing statement in this section
             102      other than a recital that it is to be filed in the real estate records; and
             103          (iv) the mortgage is duly recorded.
             104          (b) No fee with reference to the financing statement is required other than the regular
             105      recording and satisfaction fees with respect to the mortgage.
             106          (7) A financing statement sufficiently shows the name of the debtor if it gives the
             107      individual, partnership, or corporate name of the debtor, whether or not it adds other trade names
             108      or the names of partners. Where the debtor so changes the debtor's name or in the case of an
             109      organization its name, identity, or corporate structure that a filed financing statement becomes
             110      seriously misleading, the filing is not effective to perfect a security interest in collateral acquired
             111      by the debtor more than four months after the change, unless a new appropriate financing statement
             112      is filed before the expiration of that time. A filed financing statement remains effective with
             113      respect to collateral transferred by the debtor even though the secured party knows of or consents
             114      to the transfer.
             115          (8) A financing statement substantially complying with the requirements of this section
             116      is effective even though it contains minor errors which are not seriously misleading.    

Legislative Review Note
    as of 1-19-99 1:22 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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