Olson Burns Lee, P.C. Law Practice

August, 2002

Page 1

Welcome to the on-line
August 2002 issue of the
Community Bankers' Advisor
. . . . . . . . . . .

The Advisor is prepared by attorneys at Olson & Burns, P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to:

Community Bankers' Advisor
c/o Olson & Burns, P.C.
PO Box 1180
Minot, ND 58702-1180

olsonpc@minotlaw.com

Also, visit our web site at:
www.minotlaw.com

The attorneys at Olson & Burns represent a wide range of clients in the financial and commercial areas. Our attorneys represent more than 30 banks throughout North Dakota.

YOU ARE ASKING . . .

What exactly is an "in lieu" of filing?

It’s exactly what it sounds like. An "in lieu" of filing is an initial financing statement filed "in lieu" of a continuation statement when the place of filing changed due to Revised Article 9, but everything else is correct. File the “in lieu” of filing in the new, now-correct jurisdiction.

What information should an "in lieu" of filing contain?

You should ensure these three things are included: (1) Indicate that the UCC-1 is an "in lieu" continuation and that all financing statements listed are still active; (2) List each financing statement being moved by date, file number, jurisdiction and file number of continuations; (3) List the collateral.

How will changes in certain collateral definitions affect my existing filings?

Revised Article 9 amends certain collateral definitions to either expand or contract the type of collateral which they describe. For example, the definition of