CORPORATE TRANSACTIONS & COMPLIANCE BLOG

Review of Requirements for All UCC E-Filing Only States

By: Despina Shields, COGENCY GLOBAL INC. on Fri, Jul 29, 2016

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On August 1, 2016, West Virginia joined four other state filing offices in eliminating UCC filing in paper form. The all-electronic UCC filing mandate also applies to Colorado, Delaware, New Jersey and North Dakota.

Key Requirements in the Five States that Require Electronic UCC Filing

Here is an overview of unique state requirements for each of the five “all-electronic” UCC filing states.   

Colorado Secretary of State:

  • The collateral field may not be left blank, even if an attachment is included.
  • The collateral description field is limited to a maximum of 1,000 characters, which includes spaces and punctuation.
  • The Secretary of State does not accept public-finance transaction UCCs.

Delaware Secretary of State:

  • Each party address line is limited to 55 characters.
  • City fields limited to 22 characters.
  • State field must be left blank for non-U.S. addresses.
  • For UCC filers that opt not to file UCCs via the state’s online filing portal or via XML filing systems like UCC ProFile, Delaware allows authorized service providers, such as COGENCY GLOBAL INC. to access the state’s computer system and enter your UCC filing information into the state index.

New Jersey Department of the Treasury: 

  • Each party address line is limited to 50 characters.
  • All UCC filings must be made through the Division of Revenue and Enterprise Services (DORES) online filing portal.
  • Exception to electronic-only filing requirement: Transmitting utility (TU) filings will still be accepted on paper since the state’s online portal will not allow for the TU designation.

North Dakota Secretary of State:

  • Social security numbers will be required for all individual debtors on initial filings (UCC1s) and debtor amendments (UCC3s).
  • Federal Tax ID numbers will be required for all organization debtors on initial filings (UCC1s) and debtor amendments (UCC3s).
  • Only one UCC3 amendment type may be selected per filing.
  • Acceptable attachment formats are limited to PDF, JPG, or PNG files.
  • Acceptable forms of payment include a credit card or eCheck.
  • The electronic-only UCC filing requirement also applies to county filings.

West Virginia Secretary of State (effective August 1, 2016): 

  • Collateral description text must be 2000 characters or less.
  • Attachments (PDF or Tiff) are acceptable but must be less than 2MB.
  • No personal identifiable information (PII) can be included.
  • Exception to electronic-only filing requirement: Transmitting utility (TU) filings will still be accepted on paper since the state’s online portal will not allow for the TU designation.

Note that the “electronic-only” UCC filing requirement applies only to state level filings except in North Dakota, where it also applies at the county level.

While at this time, only CO, DE, NJ, ND and, soon, WV require electronic UCC filing, it is expected that this trend will continue and we will likely see more states moving in this direction.

 

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

 

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