New rules added to uniform commercial code

Northwestern Financial Review, Aug 1, 2001

[national summary]

After two years of preparation, new rules governing how banks perfect liens and how borrowers file collateral statements took effect july 1 in 46 states and the District of Columbia under a revised Article 9 of the Uniform Commercial Code. Article 9 of the UCC governs what lenders can accept as collateral and how collateral agreements must be documented. Its revised form sets parameters for using personal property, rather than real estate, as collateral for a loan. It also changes the filing system for financing statements that detail collateral. The revisions are intended to streamline these processes.