A bill recently enacted in North Dakota will have a significant impact on UCC filing in the state. House bill 1136, signed by the governor on April 29, 2013, will make North Dakota the second state to require that all UCC records be filed electronically. Colorado was the first, starting in 2012. The new law does not limit the electronic filing mandate to just UCC records. The Secretary of State is required to establish an electronic central index filing system that includes EFS records filed under the Food Security Act and a wide variety of statutory liens in addition to UCC records. Curiously, the new law reinstates the requirement that a UCC financing statement must provide the debtor’s Social Security Number or Internal Revenue Service Taxpayer Identification Number. North Dakota, one of only two states that continued to require tax numbers after Revised Article 9 took effect, removed that filing condition at the beginning of 2012. Once the new law takes effect, the filing office must again reject a UCC record that fails to provide the SSN or EIN of the debtor.
The new law is scheduled to take effect no later than August 1, 2015. However, it could take effect sooner. The law provides that it becomes effective 90 days after the Secretary of State certifies that its new system is ready.
If you have questions or need more information regarding Article 9 legislation, please contact Paul Hodnefield, Associate General Counsel, at email@example.com or 800-927-9801, ext. 62375.