HB32 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

HB32 updates Alabama's secured transactions rules to align with changes to the Uniform Commercial Code, clarifying debtor naming on financing statements, strengthening protections for after-acquired property, and creating a new framework for electronic chattel paper under the UETA.

What This Bill Does

It updates Article 9A to provide clearer rules on the proper names to use for debtors on financing statements (entities use the name filed with the state; individuals may use the driver's license name or their actual name, including surname and first name). It also changes the information required on financing statements and gives greater protection for secured parties with after-acquired property when a debtor relocates to another state or merges. The bill adds a safe harbor for transferring chattel paper in line with the Uniform Electronic Transactions Act. Finally, it creates a new Part 8 (Sections 7-9A-801 to 7-9A-809) setting the effective date, savings provisions, and detailed rules on perfection, continuation, amendments, and priority under Article 9A.

Who It Affects

• Individual debtors, who may have their names on financing statements clarified and potentially simplified (using driver's license name or full legal name).
• Business entities and registered organizations, which must use the name filed with the state for purposes of protection and priority.
• Secured parties (lenders, banks, trustees) who would benefit from clearer naming rules, stronger protections for after-acquired property when debtors move or merge, and a safe method for transferring chattel paper electronically.
• Filing offices and practitioners handling secured transactions, who must apply the new filing requirements and continuations under the updated Article 9A.

Key Provisions

• Clarification of debtor naming on financing statements: entities use the name filed with the state; individuals may use the driver's license name, the debtor's actual name, or the surname plus first name on the financing statement.
• Changes to financing statement content and procedures to align with the updated Article 9A, including protections for after-acquired property when a debtor relocates or merges and a safe harbor for transferring chattel paper under the Uniform Electronic Transactions Act.
• Creation of a new Part 8 (Sections 7-9A-801 to 7-9A-809) establishing the act's effective date (July 1, 2014), savings provisions, rules for continuing or converting pre-effective date filings, and detailed priority rules for security interests under the amended code.

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