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Delaware enacts 2010 Amendments to UCC Article 9

Delaware has joined the list of states that have enacted the 2010 Amendments to UCC Article 9.  The governor signed House Bill 8 on May 3, 2013.  The bill takes effect on July 1, 2013.

The bill was originally introduced with a non-uniform rule for individual debtor name sufficiency.  However, that was amended during the legislative process.  As enacted, HB 8 adopts the Alternative B safe harbor approach for the sufficiency of individual debtor names in Section 9-503(a)(4).  

The bill also departed from the official text by adding new Section 9-512(f).   This new provision clarifies whether Section 9-507(c) or Section 9-508 applies when a filed financing statement becomes seriously misleading following the conversion of the debtor from one entity type to another. 

Section 9-521 also departs from the official text.  It incorporates images of the 4/20/2011 forms set forth in the official text, but includes some additional non-uniform forms.  Section 9-521 includes optional amendment and amendment addendum forms.  The optional forms are very similar to the regular UCC3 forms, but they include an extra action for “Amendment (Other)”.  

Additional resources on the 2010 Amendments to UCC Article 9, including legislative status charts, are available at http://csctransactionwatch.com/amendments/.
 
If you have questions or need more information on Article 9 legislation, please contact Paul Hodnefield, Associate General Counsel, at phodnefi@cscinfo.com or 800-927-9801, ext. 62375.