Community Bankers' Advisor

i  August, 2002

Page 3  


Get It Filed

The “new and improved” UCC has been law for just over a year now, but the newness of it all still causes some uncertainty. In many ways, filing is easier than before, but there are several things that should be added to your checklist to ensure that your filing will not be rejected by the filing office. In that any one of these things could lead to rejection in a given situation, they are of equal importance:

1. List the social security and/or tax identification numbers for all debtors.

2. The Central Notice (CNS) filing must be signed by both debtor and secured party.

3. The initial filing must provide the name and mailing address of the debtor or secured party.

4. If the debtor is an organization your filing must indicate these things: (1) type of organization, (2) jurisdiction (state of origin) of organization, and (3) organizational number (system ID number), if any.

5. A continuation must be filed within the six-month period before expiration.

6. An amendment must contain the complete number of the initial filing.

7. An amendment, continuation, or termination must be sent to the office of the initial filing – in North Dakota amendments must be filed in the same filing office as the initial filing.

 

Still Waiting for the Bankruptcy Reform Act

This newsletter has contained articles about the pending bankruptcy reform bill, prematurely it now appears because we have waited in vain for its arrival. Both the House and the Senate approved bankruptcy legislation but interested parties have delayed it for several years. President Bush has indicated he would sign it, but he may have to wait yet another year if Republican and Democratic negotiators can't resolve an abortion-related provision in the near future.

Senate Democrats want to add a provision to keep people who attack or block access to abortion clinics from declaring bankruptcy to avoid paying court-ordered fines. The provision was targeted directly at abortion protesters, but through negotiation with Senate Republicans it was changed to harassing, intimidating, or threatening anyone providing or trying to obtain “lawful goods or services.” However, House Republicans never included that provision in their bankruptcy bill and have been trying to get the Senate sponsor of the provision to modify it again. The issue has yet to be resolved

Supporters of bankruptcy legislation say stricter rules are needed immediately to stop abuse of

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