HB32 Summary

• Amends Alabama's adoption of Article 9 (Secured Transactions) of the Uniform Commercial Code to incorporate changes to the UCC, effective July 1, 2014.

• Updates debtor name requirements on financing statements: for individuals, allows the name on driver's license, actual name, or surname and first personal name; for registered organizations, requires the name stated on public organic records filed with the state.

• Provides greater protection for secured parties with security interests in after-acquired property when debtors relocate to another state or merge with other entities through expanded transition provisions.

• Establishes a safe harbor for transfers of chattel paper in conformance with the Uniform Electronic Transaction Act and clarifies requirements for electronic chattel paper control.

• Adds transitional provisions (Sections 7-9A-801 through 7-9A-809) governing effectiveness of pre-existing security interests, financing statements, and priority rules during the transition from prior law to amended Article 9.