Report Title:

Uniform Commercial Code; Secured Transactions; Fixtures

Description:

Provides that all financing statements, including fixture filings, are to be filed in the bureau of conveyances, except for fixture filings that are part of a mortgage, which will be recorded in the applicable recording office for the mortgage.

HOUSE OF REPRESENTATIVES

H.B. NO.

1753

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to secured transactions.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 490:9-501, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as otherwise provided in subsection (b), if the local law of this State governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:

(1) The office designated for the filing or recording of a record of a mortgage on the related real property, if[:] a mortgage is intended to serve as a fixture filing or as a financing statement pursuant to section 490:9-502(c); or

[(A) The collateral is as-extracted collateral or timber to be cut; or

(B) The financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures; or]

(2) The bureau of conveyances, in all other cases, including a case in which the collateral [is goods] described in the financing statement, other than a mortgage, includes:

(A) As-extracted collateral;

(B) Timber to be cut; or

(C) Goods that are or are to become fixtures [and] regardless of whether the financing statement is or is not filed as a fixture filing."

SECTION 2. Section 490:9-502, Hawaii Revised Statutes, is amended by amending subsection (b) and (c) to read as follows:

"(b) Except as otherwise provided in section 490:9-501(b), to be sufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture filing and covers goods that are or are to become fixtures, must satisfy subsection (a) and also:

(1) Indicate that it covers this type of collateral;

[(2) Indicate that it is to be filed for record in the real property records;

(3)] (2) Provide a description of the real property to which the collateral is related; and

[(4)] (3) If the debtor does not have an interest of record in the real property, provide the name of a record owner.

(c) A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut only if:

(1) The record indicates the goods or accounts that it covers;

(2) The goods are or are to become fixtures related to the real property described in the record or the collateral is related to the real property described in the record and is as-extracted collateral or timber to be cut;

(3) The record satisfies with the requirements for a financing statement in this section [other than an indication that it is to be filed in the real property records]; and

(4) The record is duly recorded."

SECTION 3. Section 490:9-516, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Filing does not occur with respect to a record that a filing office refuses to accept because:

(1) The record is not communicated by a method or medium of communication authorized by the filing office;

(2) An amount equal to or greater than the applicable filing fee is not tendered;

(3) The filing office is unable to index the record because:

(A) In the case of an initial financing statement, the record does not provide a name for the debtor;

(B) In the case of an amendment or correction statement, the record:

(i) Does not identify the initial financing statement as required by section 490:9-512 or 490:9-518, as applicable; or

(ii) Identifies an initial financing statement whose effectiveness has lapsed under section 490:9-515; or

(C) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's last name; [or

(D) In the case of a record filed in the filing office described in section 490:9-501(a)(1), the record does not provide a sufficient description of the real property to which it relates;]

(4) In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

(5) In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

(A) Provide a mailing address for the debtor;

(B) Indicate whether the debtor is an individual or an organization; or

(C) If the financing statement indicates that the debtor is an organization, provide:

(i) A type of organization for the debtor;

(ii) A jurisdiction of organization for the debtor; or

(iii) An organizational identification number for the debtor or indicate that the debtor has none;

(6) In the case of an assignment reflected in an initial financing statement under section 490:9-514(a) or an amendment filed under section 490:9-514(b), the record does not provide a name and mailing address for the assignee; or

(7) In the case of a continuation statement, the record is not filed within the six-month period prescribed by section 490:9-515(d)."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

_____________________________