WSR 04-16-053

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed July 29, 2004, 9:44 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-17-069.

Title of Rule and Other Identifying Information: WAC 308-390-201 Uniform Commercial Code.

Hearing Location(s): Department of Licensing, Business and Professions Division, 405 Black Lake Boulevard, 2nd Floor Conference Room, Olympia, WA 98502, on September 7, 2004, at 10:00 a.m.

Date of Intended Adoption: September 9, 2004.

Submit Written Comments to: Margaret Vogeli, Management Analyst, Uniform Commercial Code, P.O. Box 9660, Olympia, WA 98507-9660, fax (360) 586-4414.

Assistance for Persons with Disabilities: Contact Margaret Vogeli by TDD (360) 586-2788 or (360) 664-1530.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To provide acceptance requirements for national UCC addenda forms.

Explanation of Rule, its Purpose, and Anticipated Effects: The adoption of this rule will allow UCC filers to submit multiple party names using the national UCC1-AP and UCC3-AP forms. It limits filers to submitting one only of the current addenda (UCC1-AD) form and describes the allowable form combinations. These changes will make it easier and less costly for filers who have multiple party names to add to their initial and amendment statements. Acceptance of the multiple party forms will make Washington more uniform with the rest of the nation's UCC offices.

Proposal Changes the Following Existing Rules: Amends WAC 308-390-201 describing procedures and limitations for submitting addenda forms with the UCC Financing Statement and UCC Amendment forms.

Reasons Supporting Proposal: This rule is needed in order to accept national forms approved by the International Association of Commercial Administrators and to promote uniform procedures across the nation.

Statutory Authority for Adoption: RCW 62A.9-409 and 34.05.220.

Statute Being Implemented: Chapter 62A.9A RCW.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of Licensing, Uniform Commercial Code, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jon Donnellan, 405 Black Lake Boulevard, Olympia, WA, (360) 664-1530.

No small business economic impact statement has been prepared under chapter 19.85 RCW. RCW 34.05.310 (4)(c), 19.85.025(3), 62A.9A.-526(b).

These rules are proposed to adopt national standards in accordance with Revised Article 9, section 526 "to keep the filing office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this part, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions..."

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Department of Licensing is exempt from this statute.

July 26, 2004

Mykel Gable

Assistant Director

OTS-7433.1


AMENDATORY SECTION(Amending WSR 01-10-056, filed 4/27/01, effective 7/1/01)

WAC 308-390-201   Multiple names.   (1) To file multiple debtor and secured party names on a paper submittal, a filer must provide the additional names in ((boxes 2 or 11 only of the national UCC Financing Statement and box 7 only on the national UCC Financing Statement Amendment. Debtor names appearing in other boxes or on attachments will not be indexed. There is no limit to the number of addendum pages that may be attached.

(2) To file multiple secured party names on a paper submittal, a filer must provide the additional names in box 12 only of the national UCC Financing Statement Addendum and box 7 of the national UCC Financing Statement Amendment. Secured party names appearing in other boxes or on attachments will not be indexed. There is no limit to the number of addendum pages that may be attached)) designated boxes on approved addenda forms only. The approved addenda forms are UCC1Ad, UCC1Ap, and UCC3Ap. Addenda forms are approved as provided in WAC 308-390-104. The number of paper submittal addenda pages that may be attached is limited as set forth in subsection (2) of this section.

(2) The number and type of paper submittal addenda forms that may be filed and indexed is limited to the following combinations:

(a) UCC1 plus one addendum (UCC1Ad) form and/or one or two additional party (UCC1Ap) forms. This combination permits a maximum of nine debtor and six secured party names to be indexed.

(b) UCC3 plus one or two additional party (UCC3Ap) forms. This combination permits a maximum of seven debtor or five secured party names to be indexed.

(3) Debtor and secured party names appearing in the incorrect boxes or on paper submittal attachments or addenda in excess of that stated in subsection (2) of this section will be accepted but not added to the index.

(4) To file and index more names than provided on the allowable number of paper submittal addenda pages, a filer may file using the Washington UCC electronic filing function on the internet. Electronic filing permits an unlimited number of names to be filed and added to the index.

[Statutory Authority: Chapters 62A.9, 60.11, 60.13, 60.68, and 62A.9A RCW. 01-10-056, 308-390-201, filed 4/27/01, effective 7/1/01.]

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