Part 11- Appendix B: Uniform Commercial Code, Note 28

Summary of Appendix B B-135 to B-138: Filing and Enforcement of Security Interests This section outlines procedures for managing records in filing offices and rights and duties associated with enforcing security interests under the Uniform Commercial Code (UCC). Key topics include record acknowledgment, maintenance, fees, rules harmonization, default rights, and procedures involving personal and real property. 1. Filing Office Duties (§ 9–519 to § 9–525) Acknowledgment and Communication (§ 9–523):   Acknowledgment of Filing: o Filing offices must confirm receipt of records with details including:  Assigned number.  Filing date and time. o Written requests must receive written or admissible acknowledgments. Response to Information Requests: o Filing offices must provide:  Whether financing statements for a specified debtor are on file.  Filing dates and times, and the information in each record. o Responses must be delivered within two business days. Record Maintenance and Destruction (§ 9–522):   Filing offices must keep records for at least one year after a financing statement lapses. Written records may be destroyed if an alternate format (e.g., digital) is retained. Public Access to Records (§ 9–523(f)):  Filing offices must offer bulk access to records, ensuring availability in different media formats. Filing Delays (§ 9–524):  Filing delays are excusable if caused by factors like: o System failures. o Emergencies. o Filing offices must exercise reasonable diligence in such situations. Fees (§ 9–525):    Fee structures vary based on: o Communication method (written, electronic). o Length of records. No additional fees apply to indexing debtor names unless specified by state law. Mortgage filings treated as fixture filings follow standard recording fee structures. 2. Harmonization and Oversight (§ 9–526 to § 9–527) Filing Office Rules (§ 9–526):   Filing rules must align with UCC provisions and harmonize with practices in other jurisdictions. Rules should consider technological compatibility and industry models like those by the International Association of Corporate Administrators. Reporting (§ 9–527):  Filing offices must report annually on: o Variations in rules compared to other jurisdictions. o Consistency with model rules and technology practices. 3. Rights and Duties After Default (§ 9–601 to § 9–606) Secured Party Rights (§ 9–601):   After default, secured parties may: o Enforce claims via judicial or other procedures. o Foreclose on collateral or reduce claims to judgment. For goods classified as fixtures, secured parties can pursue remedies under UCC or real property laws. Cumulative Rights and Liens (§ 9–601(c)-(e)):   Secured party rights are cumulative and may be exercised concurrently. Judgment liens relate back to the earliest date of perfection, filing, or statutory creation of agricultural liens. Fixture Removal (§ 9–604):  Secured parties with priority may remove fixtures but must reimburse property owners for physical repair costs. 4. Enforcement of Collateral Rights (§ 9–607):   Secured parties can: o Notify obligors to pay directly after default. o Collect and enforce payment rights. Buyers of payment intangibles, promissory notes, or similar rights have limited duties under these provisions. 5. Limitations on Waivers and Agreements (§ 9–602 to § 9–603):   Debtors cannot waive certain rights, including: o Peaceful possession during collateral recovery. o Proper disposition and accounting of collateral. o Redemption rights and surplus proceeds distribution. Agreements to define performance standards are valid unless they are manifestly unreasonable. 6. Real Property and Fixture Collateral (§ 9–604):   Enforcement for mixed collateral (personal and real property): o May be pursued separately for personal property or jointly under real property laws. Fixture removal: o Requires secured party priority and assurances for repair obligations.