SB28 Summary

• Amends Alabama's Uniform Commercial Code Article 9A (Secured Transactions) to modernize provisions governing security agreements, financing statements, and attachment of security interests, effective July 1, 2014.

• Updates definitions and requirements for perfecting security interests, including new provisions for electronic chattel paper, debtor naming requirements, and filing procedures for various types of collateral.

• Establishes transition rules for security interests perfected before the July 1, 2014 effective date, allowing previously filed financing statements to remain effective under specified conditions.

• Adds new provisions authorizing secured parties to enforce collection of obligations, including the ability to record affidavits to enforce mortgages nonjudicially and deduct collection expenses from proceeds.

• Creates standardized UCC financing statement forms (Form UCC1, Amendment Form UCC3) with detailed field requirements for debtors, secured parties, and collateral descriptions.