SB23 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

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-607 am'd; Secs. 7-9A-801 to 7-9A-809, inclusive, added

Summary

SB23 updates Alabama's secured transactions rules under Article 9 of the Uniform Commercial Code, focusing on how debtor names are shown on financing statements, protections for after-acquired property, and a safe harbor for transferring chattel paper, plus transitional provisions.

What This Bill Does

The bill updates Article 9 to clarify the proper names used on financing statements. For business entities and other registered organizations, the name filed with the state is the correct name for protection purposes; for individuals, the name on the driver's license, the debtor's actual name, or the surname and first name may be used. It also changes the information required on financing statements, strengthens protections for existing secured parties when the debtor moves to another state or merges, and provides a safe harbor for transferring chattel paper under the Uniform Electronic Transactions Act. Additionally, it adds a new Part 8 with transitional rules about when security interests are perfected or remain effective, especially for pre-effective-date filings.

Who It Affects

• Individual debtors — the naming rules on financing statements specify acceptable names (driver's license name or actual name) and allow surname plus first name, affecting how their obligations are recorded.
• Businesses and other registered organizations and secured lenders — the naming rules use the state-filed name for protection, and the bill provides greater protection for secured parties with after-acquired property when the debtor relocates or merges, plus a safe harbor for transferring chattel paper.

Key Provisions

• Clarifies that individual debtors may be named on financing statements using the driver's license name, actual name, or surname and first name.
• Requires registered organizations to use the name filed with the state as the proper name for protection on financing statements.
• Enhances security interest protection for after-acquired property when the debtor relocates to another state or merges with another entity.
• Provides a safe harbor for transfer of chattel paper in compliance with the Uniform Electronic Transactions Act.
• Adds Part 8 (Sections 7-9A-801 to 7-9A-809) with transitional provisions governing effectiveness, perfection, and pre-effective-date filings under the amended Article 9.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Uniform Commercial Code