Pub. 6 2011-2012 Issue 1

May/June 2011 19 Extraordinary Service for Extraordinary Members. N EBRASKA BANKERS SHOULD take note of two of the more significant provisions of the amendments: 1) changes to the requirements of identifying debtors’ names on financing statements; and 2) changes providing additional protec- tion to parties with security interests in after-acquired property. Requirements for Financing Statements • Debtor’s NameWhen theDebtor Is an Individual The amendments now more pre- cisely identify the name a financing statement must provide to be suffi- cient when the debtor is an individual. Under the pre-amendment rule, a financing statement was sufficient if it provided the “individual . . . name of the debtor.” Courts across the country, including Nebraska, found this rule problematic because individuals do not always have a single name. For example, in Genoa Nat’l Bank v. Sw. Implement, Inc. (In re Borden) , 353 B.R. 886 (Bankr. D. Neb. 2006), the debtor’s name on his birth certificate, driver’s license, and tax returns were different. In Borden , the secured creditor identified the debtor as “Mike Borden” on its financing statement. Although the name “Mike Borden” appeared on legal documents such as tax forms, the court determined that the financing statement should have reflected the name “Michael Borden” as indicated on the debtor’s birth cer- tificate and driver’s license. Since the financing statement improperly used the name “Mike Borden” instead of “Michael Borden,” the court held that the creditor’s financing statement was ineffective to perfect the creditor’s security interest. Recent Amendments to UCC Article 9 Brandon R. Tomjack & Eric J. Adams , Baird Holm LLP The Nebraska Legislature recently adopted amendments to Article 9 of the Uniform Commercial Code (UCC), which governs the attachment and perfection of security interests. Q UCC Article 9 — continued on page 20