Important UCC law change!
Category: UCC | Posted on 02/01/2008
Texas Update for the Articles of Incorporation Texas continues its tradition of pioneering changes to the UCC law. Click below to read what is new and what may be coming to your state.
Texas Update for the Articles of Incorporation 9.503 NAME OF DEBTOR AND SECURED PARTY. (a) A financing statement sufficiently provides the name of the debtor: (1) if the debtor is a registered organization, only if the financing statement provides the name of the debtor indicated on the debtor's formation documents that are filed of public record in the debtor's jurisdiction of organization to create the registered organization and that show the debtor to have been organized, including any amendments to those documents for the express purpose of amending the debtor's name. This means that the debtor's legal name, if a registered entity, must be obtained from the formation documents (Articles of Incorporation), not the state's public record (Corporate Certificate). Texas has always been the pioneer for changes to the UCC law. We anticipate that the other states will enact similar laws in the future. In anticipation of this, we are advising our clients to always request the Articles of Incorporation (and debtor name amendments) to verify the name of a registered organization, instead of only doing the Corporate Certificate.