July 1, 2013 is coming, but what does that really mean to UCC filers? Those familiar with UCCs are probably aware of the sweeping amendments to the UCC Revised Article 9 that are expected to be enacted in most, if not all, states. To date, 37 states have enacted legislation that will impact previously filed UCCs that are effective, as well as those that continue to be filed after the date the amendments take affect. On the other hand, 13 states as well as Washington, D.C. and the US Virgin Islands have yet to take any legislative action.
Of those states that have enacted legislation, we have learned that several will miss the July 1, 2013 mark. Arizona’s effective date is delayed until September 1, 2013, while California and Oklahoma have both announced a July 1, 2014 effective date—an entire year after the effective date of many other states. Furthermore, Missouri has yet to declare an effective date, although speculation is that it might be delayed until August 28, 2013. That means, come July 1, UCC filers could be operating under three rules for debtor names—the “Only If” option, the “Safe Harbor” option, and existing state protocol—depending on the state in which they are filing. No doubt, those working with UCCs are in for a bumpy road.
Working with a professional service provider can certainly help mitigate risk during this transition. Give our UCC department a call at 800.533.7272 if you’d like to enlist our help.