- June 28, 2001
- All New York State Office Counsel, Mangers and Agents
- Article 9 of the Uniform Commercial Code
Pursuant to legislation signed this week by Governor Pataki, Article 9 of the Uniform Commercial Code has undergone substantial revision. Among the various changes, financing statements must now provide more detailed information in order to be accepted for filing. As a result, the current approved form of financing statement (UCC-1) will not be accepted for filing on or after the effective date of the Revised Article 9, that is, July 1, 2001. The Department of State has or will promulgate a regulation authorizing the use of the National UCC Financing Statement (Form UCC1) for the perfection of security interests in New York as of July 1. Currently, this form and the instructions for the completion of the form, are only available through the website maintained by the State Department. For further information, consult the "Notice of Changes to Uniform Commercial Code Filing Requirements" at http://www.dos.state.ny.us/corp/ucc9info.html . This page contains a link to the new forms under New UCC Forms. This is obviously a situation which will be rife with potential complications for the near future. Specific situations and circumstances will have to be addressed as they develop, but in the meantime, some general observations:
Filing fees remain the same (subject to future revision)
To perfect a security interest in a cooperative apartment, the appropriate addendum to the UCC 1 form must be used (also available as stated above)
Co-op filings as well as "fixture filings" are made in the office of the county clerk in the county where the property is located
The Department of State anticipates that forms will be available through more traditional means "sometime next week"
Carefully read and comply with the instructions that accompany the forms
Please Note: The Department of State maintains that any filing received by a filing office on or after July 1, 2001 which does not conform to the requirements of the revised statute will not be accepted for filing, will be returned to the filer and "any processing fees payable when a UCC record is submitted for filing will not be returned or refunded, even if the record is rejected and returned". Be guided accordingly.
Upon closer inspection of the new statute, further Bulletins may be forthcoming. In the interim, included with this Bulletin is a copy of the Notice posted on the Department of State website. If you have more specific questions or concerns, please call company counsel.
Note: An attachment accompanied this bulletin in hard copy. Please contact the New York District Office to obtain a copy of the attachment.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.