HB284 Alabama 2013 Session

Summary

Primary Sponsor

Mike Jones

Republican

Co-Sponsor

Paul Beckman

Session

Regular Session 2013

Title

Secured Transactions, Uniform Commercial Code, Secs. 7-9A-102, 7-9A-105, 7-9A-307, 7-9A-311, 7-9A-316, 7-9A-317, 7-9A-326, 7-9A-406, 7-9A-408, 7-9A-502, 7-9A-503, 7-9A-507, 7-9A-515, 7-9A-516, 7-9A-518, 7-9A-521, 7-9A-607 am'd; Secs. 7-9A-801 to 7-9A-809, inclusive, added

Summary

HB284 updates Alabama's Uniform Commercial Code Article 9A (Secured Transactions) to modernize debtor naming, filing and perfection rules, adds cross-state and electronic-record safeguards, and establishes new transitional provisions with an effective date of July 1, 2013.

What This Bill Does

The bill integrates updated Article 9A provisions, clarifying how to name individual debtors (using driver’s-license name or actual name) and business entities (name filed with the state) on financing statements, and it broadens the information required on financing statements. It provides greater protection for secured parties who hold interests in after-acquired property when the debtor relocates or merges with another entity, and it creates a safe harbor for transferring chattel paper in line with the Uniform Electronic Transactions Act. It also adds a new Part 8 (Sections 7-9A-801 to 7-9A-809) to Chapter 9A and sets an effective date of July 1, 2013, with transitional rules for pre-effective-date filings and cross-jurisdiction issues.

Who It Affects

• Debtors (both individuals and registered organizations) - must use the updated, specific debtor names on financing statements and may have location reporting requirements that affect where filing occurs; misnaming could lead to seriously misleading filings or loss of perfection.
• Secured parties, lenders, filing offices, and record-keepers - face new rules for maintaining perfection across state changes, after-acquired property, and electronic records, plus transitional rules and safe harbors for chattel paper transfers.

Key Provisions

• Clarifies debtor naming on financing statements: individuals may use the driver’s license name or their actual name (or surname and first name), while business entities must use the name filed with the state; limitations and additional debtor information rules are also specified.
• Adds cross-state and after-acquired property protections: when a debtor relocates to another state or merges, existing secured interests in after-acquired property receive enhanced protection under the updated framework, with transitional guidance for changes in governing law.
• Provides a safe harbor for transferring chattel paper: transfers of chattel paper may be supported by a safe harbor mechanism compatible with the Uniform Electronic Transactions Act.
• Establishes a new Part 8 (Sections 7-9A-801 through 7-9A-809) implementing the updated Article 9A framework, sets the act’s July 1, 2013 effective date, and includes transitional provisions for pre-effective-date filings and changes in jurisdiction.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Uniform Commercial Code