December 2007

Each month, we will update this Industry News section with a quick look at important legislative changes affecting UCC filing.

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December State Office Holiday Schedule:
Day:
11th Inauguration Day
State:
KY

Day:
24th Christmas Eve (Observed)
State:
AR, IL, KY, MI, NC, OK, TX, VA, WI

Day:
24th Washington's Birthday (Observed)
State:
GA, IN

Day:
25th Christmas Day
State:
All States

Day:
26th Day After Christmas
State:
NC, SC, TX

Day:
31st New Year's Eve (Observed)
State:
KY, MI, VA, WI
UCC News:

FloridaIn re: John's Bean Farm of Homestead, Inc,. Case No. 07-11868-BKC-LMI, Chapter 7 (U.S. Bankruptcy Court, S.D. Fla), decided November 1, 2007, further defines the definition of a “seriously misleading” debtor name under the Florida UCC statutes. Debtor's corporate name was “John's Bean Farm of Homestead, Inc.”. Creditor filed a UCC-1 financing statement against the debtor name “John Bean Farms, Inc.”, which was duly recorded and indexed in the Florida Secured Transactions Registry. The Florida Secured Transactions Registry UCC index is a “telephone book” style directory, which lists 20 debtor names on each screen. Creditor's UCC-1 filing against the incorrect name was not displayed on the initial screen when a search against the correct name was conducted. The court ruled that the creditor did not hold a secured claim, as the name used on the financing statement was “seriously misleading” and could not be considered a minor error. The court further ruled that a searching party need only conduct the search using the correct debtor name, and is not obligated to scroll through numerous screens of debtor names in an attempt to uncover name variations and incorrect debtor names.

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