17may00......4369h

2000 SESSION

00-2608

03/09

SENATE BILL 378

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill changes the effective date of the computerized filing system for security interests under the Uniform Commercial Code from July 1, 2001 to a date which shall be 3 months after the secretary of state certifies to the governor that the participating cities and towns are prepared to accept filings on behalf of the centralized filing system, or December 31, 2001, whichever occurs earlier. This bill also establishes certain transition provisions for the filing system.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17may00......4369h

00-2608

03/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

Be it Enacted by the Senate and House of Representatives in General Court convened:

262:1 Uniform Conditional Sales Law; Destruction of Certain Records Authorized; References Changed. Amend RSA 361:10-a to read as follows:

361:10-a Destruction of Certain Records Authorized. Any town or city clerk may destroy any financing statement required to be filed in a town under RSA 382-A:9-401(1)(c) as effective until [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), and any amendments, continuation statements, termination statements, or other documents and records relating thereto after [July 1] 5 years after the certification date established pursuant to RSA 382-A:9-412(1). Any town or city clerk may destroy any financing statement required to be filed under RSA 382-A:9-401(1)(a) as effective until the certification date established pursuant to RSA 382-A:9-412(1), and any amendments, continuation statements, termination statements, or other documents and records relating thereto 6 years after the filing of the last continuation statement.

262:2 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Formal Requisites of Financing Statement, Amendments, Mortgage as Financing Statement; Amendments; Place of Filing. Amend RSA 382-A:9-402(4) to read as follows:

(4) A financing statement may be amended by filing a writing signed by both the debtor and the secured party. An amendment does not extend the period of effectiveness of a financing statement. If any amendment adds collateral, it is effective as to the added collateral only from the filing date of the amendment. In this Article, unless the context otherwise requires, the term "financing statement" means the original financing statement and any amendments. On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), any amendment to a financing statement filed [in a city or town or] prior to the certification date established pursuant to RSA 382-A:9-412(1)

(a) with the secretary of state under section [401(a) or (c)] 401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), [prior to July 1, 2001] shall only be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state, and shall reference the date and file number of the financing statement filed with the secretary of state;

(b) with the office of the clerk of a town under section 401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall only be filed according to RSA 382-A:9-412(3).

262:3 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; What Constitutes Filing, Duration of Filing, Effect of Lapsed Filing, Duties of Filing Officer; Continuation; Place of Filing. Amend RSA 382-A:9-403(3) to read as follows:

(3) A continuation statement may be filed by the secured party within 6 months prior to the expiration of the 5-year period specified in subsection (2). Any such continuation statement must be signed by the secured party, identify the original statement by file number, and state that the original statement is still effective. A continuation statement signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record and complying with subsection (2) of Section 9-405, including payment of the required fee. Upon timely filing of the continuation statement, the effectiveness of the original statement is continued for 5 years after the last date to which the filing was effective whereupon it lapses in the same manner as provided in subsection (2) unless another continuation statement is filed prior to such lapse. Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the original statement. Unless a statute on disposition of public records provides otherwise, the filing officer may remove a lapsed statement from the files and destroy it immediately if [he] the filing officer has retained a microfilm, electronic, or other record conforming to the requirements of section 410 of this article, or in other cases after one year after the lapse. The filing officer shall so arrange matters by physical annexation of financing statements to continuation statements or other related filings, or by other means, that if [he] the filing officer physically destroys or electronically erases the financing statements of a period more than 5-years past, those which have been continued by a continuation statement or which are still effective under subsection (6) shall be retained. On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), any continuation statement to a financing statement filed [in a city or town or] prior to the certification date established pursuant to RSA 382-A:9-412(1)

(a) with the secretary of state under section [401(a) or (c)] 401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), [prior to July 1, 2001] shall only be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state, and shall reference the date and file number of the financing statement filed with the secretary of state;

(b) with the office of the clerk of a town under section 401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall only be filed according to RSA 382-A:9-412(3).

262:4 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; What Constitutes Filing, Duration of Filing, Effect of Lapsed Filing, Duties of Filing Officer; Fees; Debtor Name. Amend RSA 382-A:9-403(5) to read as follows:

(5) The fee for filing each debtor name, indexing each debtor name, and furnishing filing data for an original or a continuation statement, or any amendment thereof, on a form conforming to standards prescribed by the secretary of state shall be in accordance with the fees established pursuant to RSA 478:17-g, or, if the statement does not conform to such form but otherwise conforms to the requirements of Section 9-402, the fee shall be in accordance with RSA 478:17-g.

262:5 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; What Constitutes Filing, Duration of Filing, Effect of Lapsed Filing, Duties of Filing Officer; Reference Changed. Amend RSA 382-A:9-403(8) to read as follows:

(8) On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), the secretary of state, registers of deeds, and those clerks of cities and towns participating in the centralized filing system administered by the secretary of state are filing officers for the purposes of this chapter and for all other filings required by law to be made with or through them in accordance with this chapter, including, but not limited to, filings under RSA 21-J, RSA 147-B, RSA 161-C, RSA 204-C, RSA 282-A, RSA 450, RSA 454-B, RSA 511, and RSA 511-A.

262:6 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Termination Statement; Place of Filing. Amend RSA 382-A:9-404(4) to read as follows:

(4) On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), any termination statement relating to a financing statement filed [in a city or town or] prior to the certification date established pursuant to RSA 382-A:9-412(1)

(a) with the secretary of state under section [401(a) or (c)] 401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), [prior to July 1, 2001] shall only be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state, and shall reference the date and file number of the financing statement filed with the secretary of state;

(b) with the office of the clerk of a town under section 401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall only be filed according to RSA 382-A:9-412(3).

262:7 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Assignment of Security Interest, Duties of Filing Officer, Fees; Assignment; Place of Filing. Amend RSA 382-A:9-405(4) to read as follows:

(4) On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), any assignment of a secured party's rights under a financing statement filed [in a city or town or] prior to the certification date established pursuant to RSA 382-A:9-412(1)

(a) with the secretary of state under section [401(a) or (c)] 401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), [prior to July 1, 2001] shall only be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state, and shall reference the date and file number of the financing statement filed with the secretary of state;

(b) with the office of the clerk of a town under section 401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall only be filed according to RSA 382-A:9-412(3).

262:8 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Release of Collateral, Duties of Filing Officer, Fees; Place of Filing. Amend RSA 382-A:9-406 to read as follows:

382-A:9-406 Release of Collateral; Duties of Filing Officer; Fees.

(1) A secured party of record may by his or her signed statement release all or a part of any collateral described in a filed financing statement. The statement of release is sufficient if it contains a description of the collateral being released, the name and address of the debtor, the name and address of the secured party, and the file number of the financing statement. A statement of release signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record and complying with subsection (2) of Section 9-405, including payment of the required fee. Upon presentation of such a statement of release to the filing officer, [he] the filing officer shall mark the statement with the hour and date of filing and shall note the same upon the margin of the index of the filing of the financing statement. On and after [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), any release of a financing statement filed [in a city or town or] prior to the certification date established pursuant to RSA 382-A:9-412(1)

(a) with the secretary of state under section [401(a) or (c)] 401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), [prior to July 1, 2001] shall only be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state, and shall reference the date and file number of the financing statement filed with the secretary of state;

(b) with the office of the clerk of a town under section 401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall only be filed according to RSA 382-A:9-412(3).

(2) The uniform fee for filing and noting such a statement of release shall be in accordance with the fees established pursuant to RSA 478:17-g.

262:9 Uniform Commercial Code; Secured Transactions; Information From Filing Officer. Amend RSA 382-A:9-407(2) to read as follows:

(2) Upon request of any person, the filing officer shall issue his certificate showing whether there is on file on the date and hour stated therein, any presently effective financing statement naming a particular debtor and any statement of assignment thereof and if there is, giving the date and hour of filing of each such statement and the names and addresses of each secured party therein. The fee for such a certificate shall be the sum of:

(a) $5 if the request for the certificate is in the standard form prescribed by the secretary of state and otherwise $7, plus

(b) A database search fee determined by the secretary of state pursuant to RSA 382-A:9-411(d) for any search or compilation of data in the centralized files maintained by the secretary of state.

In the case of certificates issued by the clerk of a city or town the fee charged under subparagraph (a) shall be retained by the city or town and the search fee under subparagraph (b) shall be transferred to the state treasurer to be administered in accord with RSA 293-A:1.37. The secretary of state may provide certificated and uncertificated search reports or compilations of data, charging database search fees to be determined by the secretary of state pursuant to RSA 382-A:9-411(d), and the resulting funds shall be administered in accordance with RSA 293-A:1.37. Upon request, the filing officer shall furnish a photocopy of any filed financing statement or statement of assignment for a uniform fee of $.75 per page.

262:10 Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Computerized Filing System; Date Changed. Amend RSA 382-A:9-411(b) to read as follows:

(b) The system shall, by [July 1, 2001] the certification date established pursuant to RSA 382-A:9-412(1), permit filings to be made in electronic form from the clerk's office of any participating city or town.

262:11 New Section; Uniform Commercial Code; Secured Transactions, Sales of Accounts and Chattel Paper; Filing; Transition Provisions for Computerized Filing System. Amend RSA 382-A by inserting after section 9-411 the following new section:

382-A:9-412 Transition Provisions for Computerized Filing System.

(1) For purposes of this chapter, "certification date" shall mean either a date which shall be 3 months after the secretary of state certifies to the governor that the participating cities and towns are prepared to accept filings on behalf of the centralized filing system, or December 31, 2001, whichever occurs earlier.

(2) A financing statement filed prior to the certification date established pursuant to RSA 382-A:9-412(1), at the office of the clerk of the town under section 9-401(1)(c) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall no longer be effective as of the certification date established pursuant to RSA 382-A:9-412(1). The related financing statement filed at the office of the secretary of state shall remain effective until lapsed, terminated, or continued according to this Article.

(3) A financing statement filed prior to the certification date established pursuant to RSA 382-A:9-412(1), at the office of the clerk of the town under section 9-401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), shall remain effective until lapsed or terminated, subject to subsection (3).

(4) At such time on or after the certification date established pursuant to RSA 382-A:9-412(1), that an amendment, assignment, release of collateral, continuation, or termination is required to a financing statement filed prior to the certification date established pursuant to RSA 382-A:9-412(1), at the office of the clerk of the town under section 9-401(1)(a) of this Article, as effective until the certification date established pursuant to RSA 382-A:9-412(1), in which the city or town does not participate in the centralized filing system administered by the secretary of state, a new financing statement shall be filed with the clerk of a city or town participating in the centralized filing system administered by the secretary of state before the financing statement would otherwise lapse. The new financing statement shall state, "This financing statement continues the financing statement dated _______, file number ______, filed in the town (city) of ___________." A copy of the financing statement so referenced, including any amendments, releases, assignments, and continuations, shall be attached to the new financing statement. The new financing statement continues the effectiveness of the financing statement so referenced.

(5) Any new financing statement or amendment, continuation, termination, assignment, or release of collateral, filed on or after the certification date established pursuant to RSA 382-A:9-412(1), under section 9-401(1)(a) or section 9-401(1)(c) of this Article, as effective until the certification date pursuant to RSA 382-A:9-412(1), with the secretary of state or a clerk of a city or town not participating in the centralized filing system administered by the secretary of state shall not be effective.

262:12 Conveyances and Mortgages of Realty; Registers of Deeds; Fees; Date Changed. Amend RSA 478:17-g, IV to read as follows:

IV. Commencing [July 1, 2001] on the certification date established pursuant to RSA 382-A:9-412(1), the secretary of state shall cease to accept filings of financing statements or amendments, assignments, releases, continuations, or terminations thereof (except for those pertaining to security interests in collateral of a transmitting utility). Commencing [July 1, 2001] on the certification date established pursuant to RSA 382-A:9-412(1), the secretary of state shall also cease to accept filings of attachments of personal property under RSA 511 and RSA 511-A. All such filings shall be made through the office of the clerk of a city or town participating in the centralized filing system administered by the secretary of state under RSA 382-A:9-411. Clerks of those cities and towns participating in the centralized filing system administered by the secretary of state under RSA 382-A shall charge a single fee of $30 for the first page of each filing under RSA 382-A and $8 for each additional page, one half of which shall be held for the use of the state and transferred quarterly to the state treasurer.

262:13 Amendments to Place of Filing; Effective Date Changed. Amend 1998, 382:16, I to read as follows:

I. Sections 2 and 13 of this act shall take effect [July 1, 2001] on the certification date established pursuant to RSA 382-A:9-412(1).

262:14 Effective Date.

I. Section 9 of this act shall take effect upon its passage.

(Approved: June 12, 2000)

(Effective Date: I. Section 9 shall take effect June 12, 2000