First
American Title Insurance Company
of New York
This is a special bulletin for clients of First American. Prior issues are maintained on the Internet at
www.titlelaw-newyork.com. For further information please contact Michael Berey, Senior Underwriting Counsel, at mberey@firstam.com.The revision in New York State to Article 9 to the Uniform Commercial Code on Secured Transactions is anticipated to be enacted this month and be effective on July 1, 2001. Similar legislation will be in effect on July 1 in most other states. In general, financing statements will be required to be filed in the state in which the Debtor is located and in the office of the applicable state’s Department of State. The exceptions to central filing in New York State will be when the collateral is fixtures, as extracted collateral (mineral rights), timber to be cut or cooperative interests in which instances filings will continue to be made in the office of the county clerk.
New forms of financing statements will be required under with
Revised Article 9. In connection with that change, and in anticipation of
enactment of the revision, the New York State Department of State has on its WEB
site a "Notice of Anticipated Changes to Uniform Commercial Code Filing
Requirements" which indicates -that "the New York State Standard
Forms now used for filing under existing UCC Article 9 are not compatible with
the new requirements under Revised Article 9 and will not be accepted for filing
at any time after Revised Article 9 becomes effective in New York State".
The Notice also provides the following information. "For
the purpose of determining whether a UCC record should comply with existing
Article 9 or Revised Article 9, the date of the filing officer’s receipt of
the filing will control. A UCC record received by a filing office on or after
the effective date of Revised Article 9 must comply with Revised Article 9, even
if the record was mailed or otherwise transmitted by the filer prior to that
effective date". (Emphasis added)
It can be anticipated that county clerks in New York for will take the same position on financing statements submitted to them on and after July 1, 2001.
Although the new forms are not yet available, certain model forms can be viewed on the WEB site of the International Association of Corporation Administrators at
http://www.iaca.org/sts.The State Department’s Notice is at
http://www.dos.state.ny.us/corp/ucc9info.htmlJune 13, 2001