Date: March 28, 2001
Description: FFIEC Statement on Revisions to Uniform Commercial Code Article 9
The guidance attached to this bulletin continues to apply to federal savings associations.
On February 28, 2001, the Federal Financial Institutions Examination Council (FFIEC) issued the attached statement regarding a major revision of Article 9 of the Uniform Commercial Code (UCC) and its effect on financial institutions. Article 9 governs transactions involving the granting of credit secured by personal property. Revised Article 9 contains a number of new or revised rules for secured transactions that affect national banks' procedures, systems, documentation, and the enforceability of security interests.
National banks and their legal counsel should consider carefully the changes in state law brought about by revised Article 9 in order to ensure the attachment and perfection of their existing and future security interests.
Copies of the Uniform Commercial Code 2000 edition (2000 Official Text with Comments), which includes the revised Article 9, can be ordered online from The American Law Institute at http://www.ali.org. The street address is 4025 Chestnut Street, Philadelphia, PA 19104-3099. The telephone number is (215) 243-1600, ext. 700.
For further information, contact Credit & Market Risk (202) 649-6670.
David D. Gibbons