In states that enact Alternative A, individual debtor names on financing statements filed before the effective date may not be sufficient under new § 9-503(a)(4). Under the transition rules in new Part 8 of Article 9, these records will remain effective until either the lapse date or the end of the transition period, whichever comes first. To remain perfected after that time, the secured party will have to amend its financing statement to add the name provided on the individual’s driver’s license. In nearly all cases, that amendment will need to be filed before the next lapse date.
The best practice today for filing on individual debtors is to determine the correct name under current law and compare it to the driver’s license. If the names are different in any way, the secured party should file under both names as separate debtors. Doing so will ensure immediate compliance with the new law when it takes effect and eliminate the need for later amendments during the transition period.
Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota, Ohio, Oregon, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin.
Alaska, Arizona, Delaware, District of Columbia, Massachusetts, Missouri, Montana, Oklahoma, Pennsylvania, Utah, Wyoming.