House Bill No. 1137 Summary

• Revises North Dakota's Uniform Commercial Code Article 9 governing secured transactions, effective July 1, 2013, at the request of the Commission on Uniform State Laws.

• Amends definitions and rules for secured transactions including accounts, chattel paper, collateral, debtors, and secured parties, with expanded definitions covering electronic documents and various financial instruments.

• Modifies requirements for perfecting security interests, including rules for electronic chattel paper control, filing procedures, debtor naming conventions, and perfection when debtors change locations or business names.

• Establishes transition provisions allowing previously perfected security interests to remain effective under the revised law, with a one-year grace period for compliance with new perfection requirements.

• Changes filing office procedures and adds new provisions for "information statements" to challenge inaccurate financing records, replacing previous "correction statement" language.