Assembly Judiciary Unanimously Passes CBA UCC Article 9 Measure
CBA’s sponsored measure Assembly Bill 1858 (Perea), relating to Article 9 of the Uniform Commercial Code and adopting what is known as “Alternative A” (a simplified methodology for identifying a debtor’s name on a financing statement filed with the secretary of state), passed unanimously from the Assembly Committee on Judiciary last Tuesday. The measure minimizes the current documentation needed to verify the identity of a business borrower, improving the customer experience. If enacted, the overall number of financing statements filed with the secretary of state will decline, reducing the filing cost for borrowers associated with these commercial loan transactions while streamlining the current filing system. As a result, secured creditors will achieve greater efficiency.
The measure will move directly to the Assembly floor for consideration. CBA extends its sincere thanks to CBA Legal Affairs Committee members Peter Munoz of the law firm Reed Smith and Neil Rubenstein of the law firm Buchalter Nemer for generously sharing their time and expertise in Sacramento to provide expert testimony on behalf of CBA at the hearing. If you have any questions on this issue, please do not hesitate to contact Kevin Gould, CBA’s senior vice president and director of state government relations, at email@example.com or (916) 438-4410.