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I Thought the Idea of the Uniform Commercial Code Was to Be Uniform…?!

By: Despina Shields, COGENCY GLOBAL on Thu, Jul 07, 2016

IndividualStandingOutOfLine_Fotolia_89906133_XS.jpgNon-Uniform UCC Requirements You Should Know About

Ever wonder why it’s called the Uniform Commercial Code (UCC)?  How “uniform” is Article 9 of the UCC? If you have spent time preparing, filing, and/or searching for UCCs, then you have likely encountered situations that have left you wondering about this so-called uniform law and all the nuances one needs to master from state to state. Why are there differences if it is the Uniform Commercial Code?

Article 9 of the Uniform Commercial Code is really just a model act. If each state adopted the model act without changes, then Article 9 of the UCC would indeed be uniform. However, states can and do enact variations to the model act with language tailored to meet the unique needs of the specific state. Some jurisdictions may even omit sections of the model act altogether. Therefore, adaptations, changes and omissions to the model act are common. It has been this way since 1952 when the Uniform Commercial Code first became law. While uniformity has always been the goal, once Article 9 was enacted by each state, deviations proliferated from one jurisdiction to the next. 

If you are a secured lender or represent secured lenders, then take this short quiz and see how your UCC Article 9 knowledge measures up. (The answers appear at the end of this posting.)

  1. Which state requires electronic UCC filing at the central AND local filing levels?*
    1. New Jersey
    2. North Dakota
    3. Delaware
    4. Colorado

*To learn more about jurisdictions requiring electronic filing, click here

  1. All states have adopted the Amendments to Article 9 (AA9). Which state(s) did NOT adopt the AA9 UCC forms to go along with the 2010 Amendments?
    1. New York
    2. Oklahoma
    3. Kentucky & Florida
    4. West Virginia

  1. Which jurisdictions will reject for the lack of a debtor’s tax ID number (EIN or SSN)?
    1. North Dakota and South Dakota
    2. South Dakota and Iowa
    3. North Dakota only
    4. North Dakota and Idaho

  2. One state provides for a 10-year statutory effective period instead of five years for standard initial financing statements (UCC1s) (those not indicating public finance, manufactured home, or a transmitting utility designation). Which state has this provision?
    1. Tennessee
    2. Arizona
    3. Maryland
    4. Wyoming

  3. One jurisdiction will reject an initial financing statement (UCC1) if the organization debtor was not formed there. Which jurisdiction is this?
    1. District of Columbia
    2. Louisiana
    3. Puerto Rico
    4. Georgia

  4. Which state provides for ONLY a five year statutory period for transmitting utility debtor filings when all other jurisdictions provide for an indefinite (until terminated) UCC lifespan? (9-515(f))
    1. Alabama
    2. Georgia
    3. Louisiana
    4. Puerto Rico

  5. Which state accepts tribal identification cards as a source of the correct name of individual debtors?
    1. Oklahoma
    2. Montana
    3. Idaho
    4. Wyoming

  6. Most states typically provide for a 30-year statutory period when filing UCCs in connection with manufactured home transactions. Which two states listed below, although there are more than two, have deviated from the 30-year statutory period? **
    1. Georgia and North Dakota
    2. Georgia and Texas
    3. West Virginia and Wyoming
    4. Louisiana and Vermont

**For more information about the effective life of financing statement under Article 9, click here.

  1. Which state or states require UCC filers to comply with various tax requirements and tax language on the UCC form at the state level when filing a UCC?
    1. Arkansas
    2. Hawaii
    3. Florida & Tennessee
    4. All of the above

  2. In which state must “the name of the secured party or a representative of the secured party, which discloses the identity of the secured party or representative…” be indicated on a UCC financing statement? (12A:9-502)
  1. Kansas
  2. Maine
  3. Texas
  4. New Jersey

Answers:              1.B         2.A         3. A        4. D        5. C        6. B        7. B        8. A        9. C        10. D

So… How did you do? Did you get all of the questions right? To stay tuned in to important UCC news and changes, visit the UCC Article 9 Filing and Searching Info page of our website or sign up for our UCC e-mail updates.


This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Article 9 Filing, Searching and Due Diligence, UCC