HB12 Alabama 2014 Session

Summary

Primary Sponsor

Mike Jones

Republican

Session

Regular Session 2014

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

HB12 updates Alabama's Uniform Commercial Code Article 9A to clarify debtor naming on financing statements, protect perfected interests when debtors relocate or merge, and provide safe harbors for transferring chattel paper under electronic transactions.

What This Bill Does

It adopts changes to Article 9A to specify exactly how to name debtors on financing statements—business entities by the state-filed name and individuals by the driver's license name or actual name— and revises the information required on financing statements, including a safe harbor for transferring chattel paper under the Uniform Electronic Transactions Act. It also strengthens protections for an existing secured party when the debtor relocates or merges, and creates a new Part 8 with definitions and procedures for the updated framework, effective July 1, 2014, with transitional rules for pre-effective date filings. Additionally, it addresses how changes in governing law and debtor location affect perfection and filing timelines, including continuations and amendments.

Who It Affects

• Debtors and secured parties (both individuals and business entities) involved in secured transactions in Alabama. They would face clearer rules for naming on financing statements, potential changes in filing requirements, and enhanced protection of perfected interests if the debtor relocates or merges; and they gain a safe harbor for transferring chattel paper under electronic transactions.
• Filing offices, banks, lenders, and others who handle financing statements and records of chattel paper. They must implement new forms and procedures for initial statements, amendments, continuations, and cross-border perfection rules, and apply transitional provisions including electronic record handling.

Key Provisions

• Clarifies proper debtor name on financing statements: for organizations, use the state-filed name; for individuals, use the name that appears on the driver's license or the debtor's actual name (or surname and first name).
• Revises information required on financing statements and provides a safe harbor for transfer of chattel paper in conformance with the Uniform Electronic Transactions Act.
• Provides greater protection for an existing secured party with a security interest in after-acquired property when the debtor relocates to another state or merges with another entity.
• Establishes a new Part 8 (Sections 7-9A-801 to 7-9A-809) adding definitions and procedures to Chapter 9A related to the Uniform Commercial Code-Secured Transactions, with an effective date of July 1, 2014.
• Includes transitional rules for pre-effective date filings, continuations, changes in governing law, and the impact of debtor relocation on perfection.

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