SB28 Alabama 2014 Session

Summary

Primary Sponsor

Cam Ward

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

SB28 updates Alabama's secured transactions law to align with revised Uniform Commercial Code Article 9A, clarifying how security interests attach and are perfected, including electronic chattel paper and transitional rules.

What This Bill Does

SB28 amends numerous sections of Chapter 9A to adopt revised Article 9A definitions and rules for secured transactions. It adds Part 8, establishing the act's effective date, transitional provisions for pre-effective-date filings, and how continued perfection and priority work under the updated rules. It introduces a control standard for electronic chattel paper, clarifies when a security interest is perfected by compliance with other laws (such as certificate-of-title statutes), and updates debtor location and filing requirements. It also strengthens rules about assignment and enforcement of secured interests, and sets new priority and notice provisions for buyers, lessees, and lien creditors.

Who It Affects

• Secured parties, lenders, and other holders of security interests in collateral—these changes affect attachment and perfection of interests, including electronic chattel paper control and filing/priority rules.
• Debtors and account debtors (individuals, trusts, estates, corporations) whose collateral is pledged—these changes affect debtor location, notices related to assignments, and protections around certain health-care-related receivables and other rights.

Key Provisions

• Amends numerous sections (e.g., 7-9A-102, 7-9A-105, 7-9A-307, etc.) to adopt revised Article 9A definitions and rules, including electronic chattel paper, control, accounts, chattel paper, general intangibles, health-care-insurance receivables, and software, and clarifies attachment and perfection of security interests.
• Adds Part 8 (Sections 7-9A-801 to 7-9A-809) establishing an effective date of July 1, 2014, along with savings and transition rules for pre-effective-date filings, continuation, termination, amendments, and priority under the updated Article 9A.

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