SB 97 (BR 1080) - J. Carpenter
AN ACT relating to property.
Repeal and reenact various sections of Article 7 of KRS Chapter 355 and create several new sections of Article 7 of KRS Chapter 355 to adopt the 2003 amendments to Article 7 of the Uniform Commercial Code, entitled “Documents of Title"; update and modernize Article 7 to provide a domestic legal framework for documents of title to conform to international standards, including recognition of electronic documents of title, in addition to tangible documents of title; establish requirements for negotiable and nonnegotiable documents of title; delete obsolete references to tariffs, classifications, and regulations that do not track current commercial practices; amend KRS 355.1-201 to update the definitions to include references to electronic documents and tangible documents of title; amend KRS 355.2-103 to reference the definition of “control”; amend KRS 355.9-521 to establish the forms to be used for recording a financing statement, addendum, or amendment in the form and format set forth in the official text of the 2010 amendment to Article 9 of the Uniform Commercial Code promulgated by the American Law Institute and the National Conference of Commissioners on Uniform State Laws; amend KRS 355.2-104, 355.2-310, 355.2-503, 355.2-505, 355.2-506, 355.2-509, 355.2-605,355.2-705, 355.2A-103, 355.2A-514, 355.2A-514, 355.2A-526, KRS 355.4-104, 355.4-210, 355.8- 103, 355.9-102, 355.9-105, 355.9-203, 355.9-207, 355.9-208, 355.9-301, 355.9-307, 355.9-310,355.9-311, 355.9-312, 355.9-313, 355.9-314, 355.9-316, 355.9-317, 355.0-326, 355.9-338, 355.9-406, 355.9-408, 355.9-502, 355.9-503, 355.9-507, 355.9-510, 355.9-515, 355.9-516, 355.9-518, 355.9-520 355.9-601, and 355.9-607, to conform; create new sections of Article 9 of KRS 355.9-156 Chapter 355 to prohibit filing of a financing statement if not authorized under KRS 355.9-509 or 355.9-708 or if the financing statement is not related to a valid or potential commercial or financial transaction, and which is filed with an intent to harass, hinder, or defraud a qualified person identified in the financing statement; authorize a qualified person to file an affidavit, in a form to be developed by the Secretary of State, asserting that the individual who filed a financing statement was not authorized or permitted to file the statement with the Secretary of State under penalty of perjury; require the Secretary of State to promptly transmit a financing statement which is required by KRS 355.9-501 to the office designated for the filing or recording of a record of a mortgage on real property including an affidavit, and to promptly file a termination statement with respect to the financing statement identified in the affidavit and advise the secured party of record of the termination statement filing; provide that the individual who is the secured party of record may request administrative review of the filing or bring an action in Circuit Court against the individual who filed the affidavit, and that the Secretary of State shall comply with the order of the court with respect to filing the termination or noting that an action has been filed; provide that Sections 91 to 99 shall take effect on July 1, 2013; provide that Article 9 applies to a transaction or lien within its scope, even if created prior the effective date; provide that a security interest perfected immediately prior to the effective date of Sections 91 to 99 of this Act shall be deemed a perfected security interest under Article 9 but a security interest perfected immediately prior to the effective date shall meet the applicable requirements for perfection under Article 9 within one year of the effective date of Sections 91 to 99 of this Act; establish the method of perfecting a security interest which was unperfected on or before the effective date of Section 91 to 99 of this Act; provide that the filing of a financing statement before Sections 91 to 99 of this Act take effect shall satisfy the requirements for perfection under Article 9, but the perfection shall cease to be effective if it would have ceased to be effective at the time Sections 91 to 99 of this Act take effect or if the financing is filed in another jurisdiction and would have ceased to be effective under that jurisdiction’s law or on June 30, 2018; provide that the filing of a continuation statement after Sections 91 to 99 of this Act take effect does not continue the effectiveness of the financing statement, but timely filing of the continuation statement afterward and in accordance with the law of the jurisdiction shall make the financing statement effective before Sections 91 to 99 of this Act take effect for the period provided by the law of the other jurisdiction; provide that an unperfected security interest immediately preceding the effective date of Sections 91 to 99 of this Act shall be perfected without further action if the requirements of Article 9 were met on Sections 91 to 99 of this Act’s effective date, or if the requirements of Sections 91 to 99 are met after their effective date; regulate the initial filing of a financing statement; define “pre-effective-date financing statement” and establish the effectiveness of the statement dependent on the jurisdiction governing perfection; authorize a person to file an initial financing statement or a continuation statement subject to stated filing requirements; provide that Sections 91 to 99 of this Act determine priority of conflicting claims to collateral, unless the relative priorities of the claims were established before they took effect; amend KRS 360.100 to amend the definition of a "high-cost home loan" to include a mortgage with points and fees that exceeds the maximum threshold established by the Home Ownership and Equity Protection Act of 1994, Pub. L. No. 103-325, 15 U.S.C. sec. 1602(bb); delete existing references to allowable points and fees associated with a mortgage loan; amend KRS 382.480 to require the Secretary of State to maintain a federal lien index and require county clerks to transmit federal tax lien information to the Secretary of State, in a manner and within a time period designated by the Secretary of State to allow the Secretary of State to maintain the federal lien index; amend KRS 64.012 to provide that the recording and indexing fee for a United States lien, release of a United States lien, a notice of lien issued by the Internal Revenue Service or a notice of lien discharge issued by the Internal Revenue Service shall be $24, with $6 to be retained by the county clerk, $6 to be transferred to the affordable housing trust fund, $6 to the Secretary of State, and $6 to be retained by the county clerks to be applied to the county clerk's technology fund; amend KRS 131.515 to require any notice of a state tax lien, except liens for unpaid property taxes, be filed in the same manner as a lis pendens, with the file to be designated miscellaneous state and city delinquent and unpaid tax liens; require the Secretary of State to index notices of tax liens filed in a tax lien index which shall be accessible to the public in the same manner as financing statements filed with the Secretary of State, including online and searchable databases, under Article 9 of KRS Chapter 355; provide that Sections 91 to 99 of this Act take effect July 1, 2013.
SB 97 - AMENDMENTS
SCS - Retain original provisions except delete KRS Sections 382.480, 64.012, and 131.515 relating to federal lien filing with county clerks and the establishment of a statewide federal lien index by the Secretary of State; add and amend KRS 382.430 to require every writing constituting a lien and every assignment of a lien received by the county clerk for record include the mailing address of the lienholder, and provide that any mortgage that has been recorded by the county clerk shall not be deemed invalid or ineffective for failure to include the principal place of business of the mortgagee or holder of the note or other evidence of indebtedness; amend KRS 355.9-521 to include the uniform 2010 amendments to Article 9 for the form and format of a financing statement, including Form UCC3 and UCC3 Ad; create a new section of KRS Chapter 186A to provide that leases of motor vehicles or trailers which contain a terminal rental adjustment clause do not become sales contracts or create security interests in the vehicles or trailers solely because of the presence of the price adjustment clause.
HFA (1, J. Fischer) - Amend to restrict certain actions to individuals and to remove the recoverability of punitive damages.
Jan 11-introduced in Senate
Jan 12-to Judiciary (S)
Feb 9-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 10-2nd reading, to Rules
Feb 14-posted for passage in the Regular Orders of the Day for Wednesday, February 15, 2012
Feb 15-3rd reading, passed 37-0 with Committee Substitute
Feb 16-received in House
Feb 21-to Judiciary (H)
Mar 19-posted in committee
Mar 21-reported favorably, 1st reading, to Calendar
Mar 22-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, March 23, 2012
Mar 23-floor amendment (1) filed
Mar 28-3rd reading; floor amendment (1) defeated ; 3rd reading, passed 88-8
Mar 29-received in Senate
Mar 30-enrolled, signed by each presiding officer; delivered to Governor
Apr 11-signed by Governor (Acts ch. 132)