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Minnesota Office of the Secretary of State

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NEWS RELEASE: Changes to UCC Filings Effective July 1, 2013
Posted Date: 6/20/2013

***NEWS RELEASE***

CONTACT: DENNIS SMITH (651) 297-8919

Changes to UCC Filings Effective July 1, 2013

New Downloadable Paper Forms Available on Minnesota Secretary of State Website

ST. PAUL, Minn. — June 20, 2013—Changes to Uniform Commercial Code (UCC) online filings for Revised Article 9 will occur on July 1, 2013. All applicable new paper forms with those changes are now available on the Office of the Minnesota Secretary of State (OSS) website. The office serves as the state’s central filing system for lien information.

A 30-day grace period for accepting both the current and new UCC paper forms will be allowed through July 31, 2013. Beginning August 1, 2013, only the new UCC paper forms will be accepted for filing.

The UCC is a comprehensive set of laws governing commercial transactions occurring within U.S. states and territories. These transactions include borrowing money, leasing equipment, establishing contracts, and the sale of goods. Revised Article 9 covers secured financing, in which loans are made by banks and other lenders in return for an interest in collateral, most frequently machinery.

In Minnesota, approximately 170,000 secured transactions are registered with OSS each year.

The changes to the UCC forms are a result of revisions to UCC Revised Article 9 which relates to all transactions, other than a finance lease, that maintain a creditor's interest in a debtor's personal property. The debtor may be an individual or any business entity, ranging from a registered corporation to a single proprietorship.

Some key provisions to the 2013 revisions are listed below:

  • New for states is that the correct name to list on the financing statement for business entities is now the name on the "public organic record,” which is defined as the record available for public inspection, filed with or by the state to form an organization (e.g., articles of incorporation, articles of organization, limited partnership agreements). For individuals, the correct name to list is the name on their Minnesota driver’s license or Minnesota identification card.

  • Clarification of rules pertaining to "control" of Electronic Chattel Paper (ECP) to give secured parties more leeway for developing reliable systems for keeping track of and controlling such documents. The revised form retains the six-factor test and adds a general test requiring that the system employed to evidence the transfer of the ECP "reliably establish the secured party as the person to which the chattel paper was assigned.”

  • Addition of a new subsection that provides for continued perfection of the newly acquired security interests that attach within four months after the debtor moves, as long as the secured party has taken steps that would have perfected the security interest in the debtor's original state. The perfection extends until the end of the four-month period.

Requirements related to financing statements are found in Minnesota Statutes, Chapter 336, Article 9. Statutory liens are created and/or established by Minnesota Statutes, Chapter 514.

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