- Changes to Florida’s Secured Transaction Laws to Take Effect July 1, 2013
- June 7, 2012 | Author: Gregory K. Bader
- Law Firm: Gunster - Fort Lauderdale Office
House Bill 483, which was signed by the Governor on April 6, 2012, adopts the 2010 amendments to Article 9 of the Uniform Commercial Code. Among other things, the bill revises Florida’s (i) debtor identification standards, (ii) procedures for filing information statements for inaccurate or wrongly filed records, (iii) perfection of certain security interests, and (iv) standards for control of electronic chattel paper. The changes are summarized below.
Identifying the debtor
The bill amends the Florida Statutes to more clearly specify acceptable names on UCC-1 financing statements. Under the new law, if the debtor is a registered organization, a financing statement is deemed to sufficiently name the debtor if it names the registered organization on the most recent “public organic record” filed or issued by the organization’s jurisdiction of organization. This also applies to a registered organization that holds collateral in trust.
Where the collateral is being administered by a personal representative of a decedent, the financing statement is sufficient if it provides the name of the decedent as the debtor and indicates that the collateral is being administered by a personal representative. The name of the decedent indicated on the order appointing the personal representative of the decedent, which was issued by a court having jurisdiction over the collateral, is sufficient as the name of the decedent.
If the collateral is held in a trust that is not a registered organization, the financing statement must indicate the name specified in the organic record of the trust and that the collateral is held in trust. If the organic record does not specify a name, the financing statement must indicate the name of the settlor or testator, additional information sufficient to distinguish the trust from other trusts, and that the collateral is held in a trust.
The new law also provides standards for the name of an individual debtor on a financing statement. If the debtor is an individual, the financing statement must provide the name on the debtor’s driver’s license if the license has not expired. If Florida has instead issued a non-driver’s identification card, the name provided on the identification card may be used with the same effect as a driver’s license name. If Florida has issued to an individual more than one driver’s license or identification card, the most recent driver’s license or identification card applies. If the debtor does not have a driver’s license or identification card, the financing statement must provide either debtor’s name under current law or the debtor’s surname and first personal name.
In other cases, if the debtor does not have a name, the financing statement must include the name of partners, members, associates, or others comprising the debtor. The names must be provided in a manner so that each name provided would be sufficient if the person named was the debtor.