11RS SB143
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SB143

11RS

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SB 143 (BR 1598) - J. Carpenter

     AN ACT relating to property.
     Repeal and reenact various sections of Subtitle 7 of KRS Chapter 355 and create several new sections of Subtitle 7 of KRS Chapter 355 to adopt the 2003 amendments to Article 7 of the Uniform Commercial Code, entitled “Documents of Title," to update and modernize Article 7; 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 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 forms for the “UCC Financing Statement” and the “UCC Financing Statement Addendum”; 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-526, 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, 355.9-326, 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, 355.9-521, 355.9-601, and 355.9-607 to conform; create new sections of Subtitle 9 of KRS Chapter 355 to provide that Sections 88 to 96 shall take effect on July 1, 2013; provide that Subtitle 9 applies to a transaction or lien within its scope, even if created prior the effective date of the new sections; provide that a security interest perfected immediately prior to the effective date of this Act shall be deemed a perfected security interest under Subtitle 9 but a security interest perfected immediately prior to the effective date of the new sections shall meet the applicable requirements for perfection under Subtitle 9, within one year of the effective date of the new sections; provide that the filing of a financing statement before the effective date shall satisfy the requirements for perfection under Subtitle 9 of KRS Chapter 355, but the perfection shall cease to be effective if it would have ceased to be effective at the time the new sections 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 the new sections take effect does not continue the effectiveness of the financing statement, but timely filing of the continuation statement after the effective date of the new sections and in accordance with the law of the jurisdiction shall make the financing statement effective before the new sections take effect for the period provided by the law of the other jurisdiction; 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 the newly created sections determine priority of conflicting claims to collateral unless the relative priorities of the claims were established before they take effect, in which Subtitle 9 of KRS Chapter 355 as it existed prior to the effective date determines priority; amend KRS 131.515 to require the Secretary of State to index notices of tax liens in a tax lien index accessible to the public in the same manner as filing statements filed with the Secretary of State under Article 9 of KRS Chapter 355, including online and searchable databases; amend KRS 382.430 to require that a lien or other note of indebtedness include the address of the lienholder to be filed for record by the county clerk; require the mailing address of the assignee if an assignment of a mortgage, conveyance, or other lien or security is filed of record with the county clerk; provide that a mortgage recorded with a county clerk shall not be invalid for failure to include the principal place of business of the mortgagee or holder of the note; amend KRS 382.480 to require that federal tax liens and all other liens payable to the United States be filed in the Office of the Secretary of State, in addition to the office of the county clerk in the county wherein the subject property is located; require the Secretary of State to enter the filing of the lien in a federal tax lien index and make it accessible to the public in the same manner as financing statements filed with the Secretary of State under Subtitle 9 of KRS Chapter 355, including online and searchable databases; amend KRS 382.500 to provide that the Secretary of State shall be entitled to a fee from the Internal Revenue Service for each notice of tax lien filed or discharged, pursuant to KRS 355.9-515(1); provide that Sections 88 to 96 of this Act take effect July 1, 2013.

SB 143 - AMENDMENTS


     SCS - Retain original provisions and add new language clarifying requirements for the filing of tax liens and certificates of discharge; Sections 88 to 94, EFFECTIVE July 1, 2013.
     HCS - Make technical correction.
     HFA (1, T. Couch) - Insert provisions establishing filing requirements for county clerks receiving notices of certain tax liens.
     HFA (2, T. Couch) - Insert provisions establishing filing requirements for county clerks receiving notices of certain tax liens.
     HFA (3, J. Tilley) - Expand the delayed effective date of July 1, 2013 to encompass all amendments to Article 9 of the UCC contained in the bill.

     Feb 10-introduced in Senate
     Feb 14-taken from Committee on Committees (S); 1st reading; returned to Committee on Committees (S); to Judiciary (S)
     Feb 15-taken from Judiciary (S); 2nd reading; returned to Judiciary (S)
     Feb 17-reported favorably, to Rules with Committee Substitute ; posted for passage in the Regular Orders of the Day for Thursday, February 17, 2011; 3rd reading, passed 36-0 with Committee Substitute
     Feb 18-received in House
     Feb 22-to Judiciary (H)
     Feb 28-posting waived; taken from Judiciary (H); 1st reading; returned to Judiciary (H)
     Mar 1-reported favorably, 2nd reading, to Rules with Committee Substitute as a Consent Bill; floor amendment (1) filed
     Mar 2-posted for passage in the Consent Orders of the Day for Thursday, March 3, 2011; floor amendments (2) and (3) filed to Committee Substitute
     Mar 3-taken from the Consent Orders of the Day, placed in the Regular Orders of the Day; 3rd reading, passed 87-0 with Committee Substitute, floor amendments (2) and (3) ; received in Senate
     Mar 4-posted for passage for concurrence in House Committee Substitute, floor amendments (2) and (3) ; Senate concurred in House Committee Substitute, floor amendments (2) and (3) ; passed 37-0; enrolled, signed by each presiding officer; delivered to Governor
     Mar 16-vetoed

Vote History
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