AB 1858, as introduced, Perea. Commercial law: secured transactions.
The Uniform Commercial Code - Secured Transactions governs security interests in collateral, including personal property and fixtures, as well as certain sales of accounts, contract rights, and chattel paper. That code, among other things, specifies requirements and procedures regarding perfecting a security interest, including the filing of a financing statement with the Secretary of State. Existing law specifies that a financing statement sufficiently provides the name of a debtor, where the debtor is an individual, if it provides the individual name of the debtor or the surname and first personal name of the debtor.
This bill would revise the manner in which a financing statement sufficiently provides the name of the debtor, where that debtor is an individual, to provide that, where the Department of Motor Vehicles has issued a driver’s license that has not expired or identification card that has not expired to the individual, the statement sufficiently provides the name of the debtor only if the statement provides the name of the individual indicated on the license or card and, if the individual has not been issued a driver’s license or identification card, the statement sufficiently provides the name of the debtor if it provides the individual name of the debtor or the surname and first personal name of the debtor.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 9503 of the Commercial Code, as
2amended by Section 16 of Chapter 531 of the Statutes of 2013, is
3amended to read:
(a) A financing statement sufficiently provides the name
5of the debtor only if it does so in accordance with the following
6rules:
7(1) Except as otherwise provided in paragraph (3), if the debtor
8is a registered organization or the collateral is held in a trust that
9is a registered organization, only if the financing statement provides
10the name that is stated to be the registered organization’s name on
11the public organic record most recently filed with or issued or
12enacted by the registered organization’s jurisdiction of organization
13which purports to state, amend, or restate the registered
14organization’s name.
15(2) Subject to subdivision (f), if the collateral is being
16administered by the personal
representative of a decedent, only if
17the financing statement provides, as the name of the debtor, the
18name of the decedent and, in a separate part of the financing
19statement, indicates that the collateral is being administered by a
20personal representative.
21(3) If the collateral is held in a trust that is not a registered
22organization, only if the financing statement satisfies both of the
23following conditions:
24(A) Provides, as the name of the debtor, either of the following:
25(i) If the organic record of the trust specifies a name for the
26trust, the name specified.
27(ii) If the organic record of the trust does not specify a name
28for the trust, the name of the settlor or testator.
29(B) In a
separate part of the financing statement, the following
30information is provided, as applicable:
31(i) If the name is provided in accordance with clause (i) of
32subparagraph (A), the financing statement indicates that the
33collateral is held in a trust.
34(ii) If the name is provided in accordance with clause (ii) of
35subparagraph (A), the financing statement provides additional
P3 1information sufficient to distinguish the trust from other trusts
2having one or more of the same settlors or the same testator and
3indicates that the collateral is held in a trust, unless the additional
4information so indicates.
5(4) [Reserved]
6(5) If the debtor is an individual, only if
the financing statement
7provides either of the following:
8(A) The individual name of the debtor.
9(B) The surname and first personal name of the debtor.
end delete
10(4) Subject to subdivision (g), if the debtor is an individual to
11whom the Department of Motor Vehicles has issued a driver’s
12license that has not expired or an identification card that has not
13expired, only if the financing statement provides the name of the
14individual indicated on that driver’s license or identification card.
15(5) If debtor is an individual to whom paragraph (4) does not
16apply, only if the financing statement provides the individual name
17of the debtor or the surname and first personal name of the debtor.
18(6) In other cases, according to the following rules:
19(A) If the debtor has a name, only if the financing statement
20provides the organizational name of the debtor.
21(B) If the debtor does not have a name, only if the financing
22statement provides the names of the partners, members, associates,
23or other persons comprising the debtor, in a manner that each name
24provided would be sufficient if the person named were the debtor.
25(b) A financing statement that provides the name of the debtor
26in accordance with subdivision (a) is not rendered ineffective by
27the absence of either of the following:
28(1) A trade name or other name of the debtor.
29(2) Unless required under subparagraph (B) of paragraph (6) of
30subdivision (a), names of partners, members, associates, or other
31persons comprising the debtor.
32(c) A financing statement that provides only the debtor’s trade
33name does not sufficiently provide the name of the debtor.
34(d) Failure to indicate the representative capacity of a secured
35party or representative of a secured party does not affect the
36sufficiency of a financing statement.
37(e) A financing statement may provide the name of more than
38one debtor and the name of more than one secured party.
39(f) The name of the decedent indicated on the order appointing
40the personal representative of the decedent issued by the court
P4 1having jurisdiction over the collateral is sufficient as the “name
2of the decedent” under paragraph (2) of subdivision (a).
3(g) In this section, the “name of the settlor or testator” means
4either of the following:
5(g) If the Department of Motor Vehicles has issued to an
6individual more than
one driver’s licenses or identification cards
7of a kind described in paragraph (4) of subdivision (a), paragraph
8(4) of subdivision (a) refers to the most recently issued license or
9card.
10(h) For purposes of this section:
end insertbegin insert
11(1) “Driver’s license” includes a driver’s license issued
12pursuant to subdivision (a) of Section 12801.9 of the Vehicle Code.
13(2) “Name of the settlor or testator” means either of the
14following:
15(1)
end delete
16begin insert(A)end insert If the settlor is a registered organization, the name that is
17stated to be the settlor’s name on the public organic record most
18recently filed with or issued or enacted by the settlor’s jurisdiction
19of organization which purports to state, amend, or restate the
20settlor’s name.
21(2)
end delete
22begin insert(B)end insert In other cases, the name of the settlor or testator indicated
23in the trust’s organic record.
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