SB39 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

The bill updates Alabama's secured transactions rules to align with changes in the Uniform Commercial Code's Article 9A, especially how debtors are named on financing statements and related perfection rules.

What This Bill Does

It clarifies how to name debtors on financing statements: individuals may use the driver's license name or the legal name, and surnames with first names may be used; business entities use the name filed with the state. It changes the information required on financing statements, strengthens protections for secured parties when a debtor relocates or merges, and provides a safe harbor for transferring chattel paper under the Uniform Electronic Transactions Act. It creates a new Part 8 (Sections 7-9A-801 to 7-9A-809) implementing these changes, with an effective date of July 1, 2013 and transitional rules for pre-effective-date filings.

Who It Affects

• Secured parties/creditors would have clearer rules on debtor naming and stronger protections for after-acquired property when a debtor relocates or merges
• Debtors (individuals and registered organizations) would have clearer, more flexible naming requirements on financing statements and related protections when property changes location or status

Key Provisions

• Update Article 9A to incorporate changes to the Uniform Commercial Code, including how debtor name and perfection are treated
• Clarify debtor naming: individuals may use driver's license name or actual name; surname plus first name may be used; business entities use the name filed with the state
• Change the information required on financing statements and extend protections for after-acquired property when the debtor relocates to another state or merges
• Provide a safe harbor for transferring chattel paper in line with the Uniform Electronic Transactions Act
• Create new Part 8 (Sections 7-9A-801 to 7-9A-809) adding effective date, savings clause, and transition provisions for pre-effective-date filings and continuations
• Set July 1, 2013 as the act's effective date and outline transitional rules for how pre-effective-date financing statements are treated

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