The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5502--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the uniform commercial code, the civil practice law and
  rules, the lien law, the general obligations law, the banking law, the
  general business law, the  arts  and  cultural  affairs  law  and  the
  personal  property law, in relation to making technical corrections to
  conform with revisions to the uniform commercial code;  and  to  amend
  chapter  505  of the laws of 2014 amending the uniform commercial code
  relating to modernizing commercial law in New York state, in  relation
  to making technical amendments thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (g) of subsection 1 of  section  4-A-105  of  the
uniform commercial code, as added by chapter 208 of the laws of 1990, is
amended to read as follows:
(g) "Prove"  with  respect  to a fact means to meet the burden of estab-
       lishing the fact (subsection (B)(8) of section [1-201] 1--201).
  S 2. Subsection 1 of section 4-A-106 of the uniform  commercial  code,
as  added  by  chapter  208  of  the laws of 1990, is amended to read as
follows:
  (1) The time of receipt of a payment order or communication cancelling
or amending a payment order is determined by  the  rules  applicable  to
receipt  of  a  notice  stated  in  [subsection (27) of] Section [1-201]
1--202.  A receiving bank may fix a cut-off time or times  on  a  funds-
transfer  business  day for the receipt and processing of payment orders
and communications cancelling  or  amending  payment  orders.  Different
cut-off times may apply to payment orders, cancellations, or amendments,
or  to  different categories of payment orders, cancellations, or amend-
ments. A cut-off time may apply to senders generally or  different  cut-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07881-05-5

S. 5502--A                          2

off  times  may  apply  to  different  senders  or categories of payment
orders. If a payment order or communication  cancelling  or  amending  a
payment  order  is received after the close of a funds-transfer business
day  or  after the appropriate cut-off time on a funds-transfer business
day, the receiving bank may treat the payment order or communication  as
received at the opening of the next funds-transfer business day.
  S  3.  Subsection 2 of section 4-A-204 of the uniform commercial code,
as added by chapter 208 of the laws of  1990,  is  amended  to  read  as
follows:
  (2)  Reasonable time under subsection (1) may be fixed by agreement as
stated in [subsection (1) of] Section [1-204] 1--302(B), but  the  obli-
gation of a receiving bank to refund payment as stated in subsection (1)
may not otherwise be varied by agreement.
  S  4. Subsection (c) of section 5--103 of the uniform commercial code,
as added by chapter 471 of the laws of  2000,  is  amended  to  read  as
follows:
  (c) With  the exception of this subsection, subsections (a) and (d) of
this section, paragraphs (9) and  (10)  of  subsection  (a)  of  section
5--102,  subsection (d) of section 5--106, and subsection (d) of section
5--114, and except to the  extent  prohibited  in  [subsection  (3)  of]
section [1--102] 1--302 and subsection (d) of section 5--117, the effect
of  this  article may be varied by agreement or by a provision stated or
incorporated by reference in an undertaking. A term in an  agreement  or
undertaking  generally excusing liability or generally limiting remedies
for failure to perform obligations is not sufficient to vary obligations
prescribed by this article.
  S 5. Subdivision (c) of rule 4518 of the civil practice law and rules,
as amended by chapter 170 of the laws of 1994, is  amended  to  read  as
follows:
  (c)  Other records. All records, writings and other things referred to
in sections 2306 and 2307 are admissible in evidence under this rule and
are prima facie evidence of the facts contained, provided  they  bear  a
certification or authentication by the head of the hospital, laboratory,
department  or  bureau of a municipal corporation or of the state, or by
an employee delegated for that purpose  or  by  a  qualified  physician.
Where  a  hospital  record  is in the custody of a warehouse[, or "ware-
houseman"] as that term is defined by paragraph [(h) of subdivision one]
THIRTEEN OF SUBSECTION (A) of section  [7-102]  7--102  of  the  uniform
commercial  code,  pursuant  to  a plan approved in writing by the state
commissioner of health, admissibility  under  this  subdivision  may  be
established by a certification made by the manager of the warehouse that
sets  forth (i) the authority by which the record is held, including but
not limited to a court order, order of the  commissioner,  or  order  or
resolution  of  the governing body or official of the hospital, and (ii)
that the record has been in the exclusive custody of such warehouse  [or
warehousemen] since its receipt from the hospital or, if another has had
access  to it, the name and address of such person and the date on which
and the circumstances under which such access was had.  Any  [warehouse-
man] WAREHOUSE providing a certification as required by this subdivision
shall  have  no liability for acts or omissions relating thereto, except
for intentional misconduct, and the [warehouseman] WAREHOUSE is  author-
ized to assess and collect a reasonable charge for providing the certif-
ication described by this subdivision.
  S 6. Section 200 of the lien law, as amended by chapter 30 of the laws
of 1968, is amended to read as follows:

S. 5502--A                          3

  S  200.  Sale  of  personal property to satisfy a lien. A lien against
personal property, other than the lien  of  a  [warehouseman]  WAREHOUSE
pursuant to section 7--209 of the uniform commercial code, the lien of a
carrier  pursuant  to  section  7--307 of the uniform commercial code, a
security  interest  in goods and the lien of a keeper of a hotel, apart-
ment hotel, inn, boarding-house or lodging-house,  except  an  immigrant
lodging-house,  if  in the legal possession of the lienor, may be satis-
fied by the sale of such property according to the  provisions  of  this
article.
  S  7.  Subdivision 1 of section 5-1401 of the general obligations law,
as added by chapter 421 of the laws of  1984,  is  amended  to  read  as
follows:
  1.  The  parties to any contract, agreement or undertaking, contingent
or otherwise, in consideration of, or relating to any obligation arising
out of a transaction covering in the aggregate not less than two hundred
fifty thousand dollars, including a  transaction  otherwise  covered  by
subsection [one] (A) of section [1-105] 1--301 of the uniform commercial
code, may agree that the law of this state shall govern their rights and
duties  in  whole or in part, whether or not such contract, agreement or
undertaking bears a reasonable relation  to  this  state.  This  section
shall  not apply to any contract, agreement or undertaking (a) for labor
or personal services, (b) relating  to  any  transaction  for  personal,
family  or  household  services,  or  (c)  to the extent provided to the
contrary in subsection [two]  (C)  of  section  [1-105]  1--301  of  the
uniform commercial code.
  S  8. Subdivision 1-c of section 7-101 of the general obligations law,
as amended by chapter 84 of the laws of 2001,  is  amended  to  read  as
follows:
  1-c.  This  section  shall  apply  to  money  deposited or advanced on
contracts for the use or rental of personal  property  as  security  for
performance  of  the  contract  or  to  be applied to payments upon such
contract when due, only if (a) such contract is governed by the laws  of
this  state as the result of a choice of law provision in such contract,
in accordance with section [1-105] 1--301 of the uniform commercial code
(subject to the limitations on choice of law by the parties to a consum-
er lease under section 2-A-106 of the uniform commercial code), or  such
contract  is  otherwise governed by the laws of this state in accordance
with applicable conflict of laws rules, and (b) the  lessee  under  such
contract is located within this state, within the meaning of the uniform
commercial code (with respect to the location of debtors), except that a
foreign  air carrier under the Federal Aviation Act of 1958, as amended,
shall not be deemed located in this state solely as a result of having a
designated office of an agent upon whom service of process may  be  made
located in this state.
  S  9.  Subdivisions  1  and  2  of  section 138 of the banking law, as
amended by chapter 689 of the laws of  1984,  are  amended  to  read  as
follows:
  1.  Notwithstanding  section  [1-105] 1--301 of the uniform commercial
code, any bank or trust company or national bank located in  this  state
which  in  accordance  with  the provisions of this chapter or otherwise
applicable law shall have opened and occupied a branch office or  branch
offices  in  any  foreign  country  shall  be liable for contracts to be
performed at such branch office or offices and for deposits to be repaid
at such branch office or offices to no greater extent than a bank, bank-
ing  corporation  or  other  organization  or  association  for  banking
purposes  organized  and existing under the laws of such foreign country

S. 5502--A                          4

would be liable under its laws. The laws of such foreign country for the
purpose of this section shall be deemed to include  all  acts,  decrees,
regulations  and  orders promulgated or enforced by a dominant authority
asserting  governmental,  military  or  police  power of any kind at the
place where any such branch office is located, whether or not such domi-
nant authority be recognized as a de facto or de jure government.
  2. Notwithstanding section [1-105] 1--301 of  the  uniform  commercial
code,  if  by  action of any such dominant authority which is not recog-
nized by the United States as the de  jure  government  of  the  foreign
territory  concerned,  any  property  situated  in  or  any amount to be
received in such foreign territory and carried as an asset of any branch
office of such bank or trust company or national bank  in  such  foreign
territory  is seized, destroyed or cancelled, then the liability of such
bank or trust company or  national  bank  for  any  deposit  theretofore
received  and thereafter to be repaid by it, and for any contract there-
tofore made and thereafter to be performed by it, at any  branch  office
in  such  foreign territory shall be reduced pro tanto by the proportion
that the value (as shown by the books or other records of such  bank  or
trust  company or national bank at the time of such seizure, destruction
or cancellation) of such assets bears to the aggregate of all the depos-
it and contract liabilities of the branch office or offices of such bank
or trust company or national bank in such foreign territory, as shown at
such time by the books or other records of such bank or trust company or
national bank.
  S 10. Paragraphs (a) and (b) of subdivision 3 of section 204-a of  the
banking  law, as amended by chapter 552 of the laws of 1962, are amended
to read as follows:
  (a) Notwithstanding section [1-105] 1--301 of the  uniform  commercial
code, any foreign banking corporation doing business in this state under
a license issued by the superintendent in accordance with the provisions
of  this  chapter  shall  be  liable  in  this state for contracts to be
performed at its office or offices  in  any  foreign  country,  and  for
deposits  to  be  repaid at such office or offices, to no greater extent
than a bank, banking corporation or other  organization  or  association
for  banking  purposes  organized  and  existing  under the laws of such
foreign country would be liable under its laws. The laws of such foreign
country for the purpose of this subdivision shall be deemed  to  include
all  acts,  decrees, regulations and orders promulgated or enforced by a
dominant authority asserting governmental, military or police  power  of
any  kind  at the place where any such office is located, whether or not
such dominant authority be recognized as a de facto or de  jure  govern-
ment.
  (b)  Notwithstanding  section [1-105] 1--301 of the uniform commercial
code, if by action of any such dominant authority which  is  not  recog-
nized  by  the  United  States  as the de jure government of the foreign
territory concerned, any property  situated  in  or  any  amount  to  be
received in such foreign territory and carried as an asset of any office
of such foreign banking corporation in such foreign territory is seized,
destroyed  or  cancelled,  then  the liability, if any, in this state of
such foreign banking corporation for any  deposit  theretofore  received
and thereafter to be repaid by it, and for any contract theretofore made
and  thereafter  to  be  performed  by it, at any office in such foreign
territory shall be reduced pro tanto by the proportion  that  the  value
(as  shown  by the books or other records of such foreign banking corpo-
ration, at the time of such seizure,  destruction  or  cancellation)  of
such  assets  bears  to  the  aggregate  of all the deposit and contract

S. 5502--A                          5

liabilities of the office or offices of such foreign banking corporation
in such foreign territory, as shown at such time by the books  or  other
records  of such foreign banking corporations. Nothing contained in this
paragraph  shall  diminish or otherwise affect the liability of any such
foreign banking corporation to any corporation, firm or individual which
at the time of such seizure, destruction or  cancellation  was  incorpo-
rated or resident in any state of the United States.
  S  11. Subdivision 4 of section 11.01 of the arts and cultural affairs
law, as added by chapter 849 of the laws of 1984, is amended to read  as
follows:
  4.  "Creditors"  means  "creditor"  as defined in [subdivision twelve]
PARAGRAPH THIRTEEN of SUBSECTION (B) OF section [1-201]  1--201  of  the
uniform [commerical] COMMERCIAL code.
  S  12.  Subdivision  5 of section 331 of the personal property law, as
added by chapter 1 of the laws of 1994, is amended to read as follows:
  5. "Retail lease agreement" or "agreement" means an agreement, entered
into in this state, for the lease of a  motor  vehicle,  and  which  may
include  the  purchase  of  goods  or  services incidental thereto, by a
retail lessee for a scheduled term exceeding four months, whether or not
the lessee has the option to purchase or otherwise become the  owner  of
the  vehicle  at the expiration of the agreement. The term includes such
an agreement wherever entered into if executed by  the  lessee  in  this
state and if solicited in person by a person acting on his own behalf or
that  of  the  lessor.  The  term  does  not include a retail instalment
contract or a rental-purchase agreement as defined in articles nine  and
eleven  of  this  chapter. An agreement that substantially complies with
this article does not create a security interest in a motor  vehicle  as
the  term  "security  interest" is defined in [subdivision thirty-seven]
PARAGRAPH THIRTY-FIVE of SUBSECTION (B) OF section [1-201] 1--201 of the
uniform commercial code.
  S 13. Paragraph (e) of subdivision 7 of section 399-w of  the  general
business  law, as amended by chapter 140 of the laws of 1995, is amended
to read as follows:
  (e) "Retail  lease  agreement"  or  "agreement"  means  an  agreement,
entered into in this state, for the lease of goods and which may include
the  purchase  of goods or services incidental thereto by a lessee for a
scheduled term exceeding four months, whether or not the lessee has  the
option  to  purchase  or  otherwise become the owner of the goods at the
expiration of the agreement. The term includes such an agreement wherev-
er entered into if executed by the lessee in this state and if solicited
in person by a person acting on his or her own behalf  or  that  of  the
lessor.  The  term  does  not  include a retail instalment contract or a
rental-purchase agreement as defined in articles ten and eleven  of  the
personal  property  law.  An  agreement that substantially complies with
this article does not create a security interest in  the  goods  as  the
term  "security interest" is defined in [subdivision thirty-seven] PARA-
GRAPH THIRTY-FIVE of SUBSECTION (B) OF section  [1-201]  1--201  of  the
uniform commercial code.
  S  14.  Subdivision  6 of section 500 of the personal property law, as
amended by chapter 309 of the laws  of  2010,  is  amended  to  read  as
follows:
  6.  "Rental-purchase  agreement"  means  an  agreement  for the use of
merchandise by a consumer for primarily personal, family,  or  household
purposes,  for an initial period of four months or less, that is renewa-
ble with each payment after the initial  period  and  that  permits  the
consumer to become the owner of the property. An agreement that complies

S. 5502--A                          6

with this article is not a retail installment sales contract, agreement,
or  obligation  as  defined  in  this chapter nor a security interest as
defined  in  [subdivision  thirty-seven]    PARAGRAPH   THIRTY-FIVE   of
SUBSECTION (B) OF section [1-201] 1--201 of the uniform commercial code.
  S  15.    Subsection  (e)  of section 9--406 of the uniform commercial
code, as added by chapter 84 of the laws of 2001, is amended to read  as
follows:
  (e) Inapplicability of subsection (d) to certain sales. Subsection (d)
does  not  apply to the sale of a payment intangible or promissory note,
OTHER THAN A SALE PURSUANT TO A DISPOSITION UNDER SECTION 9--610  OR  AN
ACCEPTANCE OF COLLATERAL UNDER SECTION 9--620.
  S 16. Subsection (b) of section 9--408 of the uniform commercial code,
as  added  by  chapter  84  of  the  laws of 2001, is amended to read as
follows:
  (b) Applicability of subsection (a) to  sales  of  certain  rights  to
payment.  Subsection  (a)  applies  to  a security interest in a payment
intangible or promissory note only if the security interest  arises  out
of  a  sale  of  the payment intangible or promissory note, OTHER THAN A
SALE PURSUANT TO A DISPOSITION UNDER SECTION 9--610 OR AN ACCEPTANCE  OF
COLLATERAL UNDER SECTION 9--620.
  S 17. Subsection (b) of section 9--516 of the uniform commercial code,
as  added  by  chapter  84  of  the  laws of 2001, is amended to read as
follows:
  (b) Refusal to accept record; filing does not occur. Filing  does  not
occur  with  respect  to a record that a filing office refuses to accept
because:
       (1) the record is not communicated  by  a  method  or  medium  of
           communication authorized by the filing office;
       (2) an  amount equal to or greater than the applicable filing fee
           is not tendered;
       (3) the filing office is unable to index the record because:
           (A) in the case of an initial financing statement, the record
               does not provide a name for the debtor;
           (B) in the case of an amendment or  [correction]  INFORMATION
               statement, the record:
               (i) does  not identify the initial financing statement as
                   required by Section 9--512 or 9--518, as  applicable;
                   or
               (ii) identifies  an  initial  financing  statement  whose
                    effectiveness has lapsed under Section 9--515;
           (C) in the  case  of  an  initial  financing  statement  that
               provides the name of a debtor identified as an individual
               or  an amendment that provides a name of a debtor identi-
               fied as an individual which was not  previously  provided
               in  the  financing statement to which the record relates,
               the record does not identify  the  debtor's  [last  name]
               SURNAME; or
           (D) in  the  case  of  a  record  filed  in the filing office
               described in Section 9--501 (a) (1), the record does  not
               provide  a sufficient description of the real property to
               which it relates;
       (4) in the case of an initial financing statement or an amendment
           that adds a secured party of  record,  the  record  does  not
           provide  a  name and mailing address for the secured party of
           record;

S. 5502--A                          7

       (5) in the case of an initial financing statement or an amendment
           that provides a name of a debtor  which  was  not  previously
           provided  in  the  financing statement to which the amendment
           relates, the record does not:
           (A) provide a mailing address for the debtor; or
           (B) indicate  whether  the  NAME  PROVIDED AS THE NAME OF THE
               debtor is THE NAME OF an individual or an organization;
           [(C) if the financing statement indicates that the debtor  is
               an organization, provide:
               (i) a type of organization for the debtor, or
               (ii) a jurisdiction of organization for the debtor; or]
       (6) in  the case of an assignment reflected in an initial financ-
           ing statement under Section 9--514(a) or an  amendment  filed
           under  Section  9--514(b), the record does not provide a name
           and mailing address for the assignee; or
       (7) in the case of a continuation statement, the  record  is  not
           filed  within  the  six-month  period  prescribed  by Section
           9--515(d).
  S 18. Section 9--518 of the uniform commercial code, as added by chap-
ter 84 of the laws of 2001 and subsection (d) as added by chapter 490 of
the laws of 2013, is amended to read as follows:
Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record.
  (a) [Correction statement] STATEMENT WITH RESPECT  TO  RECORD  INDEXED
UNDER  PERSON'S  NAME.  A  person  may  file  in  the  filing  office [a
correction] AN INFORMATION statement with respect to  a  record  indexed
there  under the person's name if the person believes that the record is
inaccurate or was wrongfully filed.
  (b) [Sufficiency] CONTENTS of [correction] statement UNDER  SUBSECTION
(A)  OF  THIS  SECTION.  [A  correction]  AN INFORMATION statement UNDER
SUBSECTION (A) OF THIS SECTION must:
       (1) identify the record to which it relates by:
           (A) the file number assigned to the initial financing  state-
               ment to which the record relates; and
           (B) if  the  [correction]  INFORMATION statement relates to a
               record filed in a  filing  office  described  in  Section
               9--501(a)(1),  the date and time that the initial financ-
               ing statement was filed and the information specified  in
               Section 9--502(b);
       (2) indicate  that it is [a correction] AN INFORMATION statement;
           and
       (3) provide the basis for the person's belief that the record  is
           inaccurate  and  indicate  the  manner  in  which  the person
           believes the record should be amended to cure any  inaccuracy
           or  provide the basis for the person's belief that the record
           was wrongfully filed.
  (c) STATEMENT BY SECURED PARTY OF RECORD. A PERSON  MAY  FILE  IN  THE
FILING  OFFICE  AN  INFORMATION STATEMENT WITH RESPECT TO A RECORD FILED
THERE IF THE PERSON IS A SECURED PARTY OF RECORD  WITH  RESPECT  TO  THE
FINANCING  STATEMENT  TO  WHICH THE RECORD RELATES AND BELIEVES THAT THE
PERSON THAT FILED THE RECORD WAS NOT ENTITLED TO  DO  SO  UNDER  SECTION
9--509(D).
  (D)  CONTENTS  OF  STATEMENT  UNDER SUBSECTION (C) OF THIS SECTION. AN
INFORMATION STATEMENT UNDER SUBSECTION (C) OF THIS SECTION MUST:
  (1) IDENTIFY THE RECORD TO WHICH IT RELATES BY:
  (A) THE FILE NUMBER ASSIGNED TO THE  INITIAL  FINANCING  STATEMENT  TO
WHICH THE RECORD RELATES; AND

S. 5502--A                          8

  (B) IF THE INFORMATION STATEMENT RELATES TO A RECORD FILED IN A FILING
OFFICE  DESCRIBED  IN  SECTION  9--501(A)(1),  THE DATE THAT THE INITIAL
FINANCING STATEMENT WAS FILED AND THE INFORMATION SPECIFIED  IN  SECTION
9--502(B);
  (2) INDICATE THAT IT IS AN INFORMATION STATEMENT; AND
  (3)  PROVIDE  THE  BASIS  FOR THE PERSON'S BELIEF THAT THE PERSON THAT
FILED THE RECORD WAS NOT ENTITLED TO DO SO UNDER SECTION 9--509(D).
  (E) Record not affected by  [correction]  INFORMATION  statement.  The
filing  of  [a  correction] AN INFORMATION statement does not affect the
effectiveness of an initial financing statement or other filed record.
  [(d)] (F) Special proceeding to redact or expunge a falsely  filed  or
amended  financing  statement.  (1) Provided he or she is an employee of
the state or a political subdivision thereof, a person identified  as  a
debtor in a financing statement filed pursuant to this subpart may bring
a  special  proceeding  against the named filer of such statement or any
amendment thereof to invalidate the filing or  amendment  thereof  where
such statement was falsely filed or amended; except that an attorney who
is  not  an employee of the state or a political subdivision thereof may
also bring a special proceeding hereunder where he or she represents  or
has represented the respondent therein in a criminal court. Such special
proceeding  shall  be governed by article four of the civil practice law
and rules, and shall be commenced in the supreme court of Albany county,
the county of the petitioner's residence or a county within the judicial
district in which any property covered by  the  financing  statement  is
located. No fee pursuant to article eighty of the civil practice law and
rules shall be collected in such special proceeding.
  (2) The petition in a special proceeding hereunder shall plead that:
  (A)  the financing statement filed or amended by the respondent pursu-
ant to section 9--509 was falsely filed or amended to retaliate for: (i)
the performance of the petitioner's official duties in his or her capac-
ity as an employee of the state or a political subdivision  thereof,  or
(ii)  in  the case of a special proceeding brought by an attorney who is
not an employee of the state or  a  political  subdivision  thereof,  to
retaliate  for  the performance of the petitioner's duties in his or her
capacity as an attorney for the respondent in a criminal court; and
  (B) such financing statement does not  relate  to  an  interest  in  a
consumer-goods transaction, a commercial transaction, or any other actu-
al transaction between the petitioner and the respondent; and
  (C) the collateral covered in such financing statement is the property
of the petitioner; and
  (D)  prompt  redaction  or  invalidation of the financing statement is
necessary to avert or mitigate prejudice to the petitioner.
  (3) If the court makes a written finding that the allegations in para-
graph two of this subsection are established, the court shall order  the
expungement  of such statement or its redaction in the public records in
the office in which the financing statement is  filed,  as  appropriate,
and  may  grant  any  additional relief authorized by section 9--625. In
such case, the court shall cause a copy of its order to  be  filed  with
the  secretary  of  state or other appropriate filing office pursuant to
this chapter. Upon a finding  that  the  respondent  has  engaged  in  a
repeated  pattern  of  false filings as found under this subsection, the
court also may enjoin the respondent from filing or amending any further
financing statement pursuant to this article without leave of the court.
If the respondent is incarcerated at the time the court issues an  order
containing  such  an  injunction,  the court shall cause the head of the
correctional facility in which the respondent is incarcerated to receive

S. 5502--A                          9

a copy of such determination. The head of such a facility shall cause  a
copy of such order to be provided to the respondent. In any instances of
the  issuance  of such an injunction where the respondent has defaulted,
the court shall direct service of such injunction upon the respondent.
  S 19. Section 9--521 of the uniform commercial code, as added by chap-
ter 84 of the laws of 2001, is amended to read as follows:
Section 9--521. Uniform  Form of Written Financing Statement; Amendment;
                  and Cooperative Addendum.
  (a) Initial financing statement form. A  filing  office  that  accepts
written  records  may  not  refuse to accept a written initial financing
statement AND ADDENDUM in the form AND FORMAT THAT  IS  EITHER  (1)  SET
FORTH  IN  THE  OFFICIAL TEXT OF THE 2010 AMENDMENTS TO ARTICLE 9 OF THE
UNIFORM COMMERCIAL CODE PROMULGATED BY THE AMERICAN  LAW  INSTITUTE  AND
THE  NATIONAL  CONFERENCE  OF COMMISSIONERS ON UNIFORM STATE LAWS OR (2)
promulgated by the department of state, IN EACH CASE except for a reason
as set forth in Section 9--516(b).
  (b) Amendment form. A filing office that accepts written  records  may
not  refuse  to  accept a written [financing statement amendment] RECORD
AND ADDENDUM in the form AND FORMAT THAT IS EITHER (1) SET FORTH IN  THE
FINAL  OFFICIAL  TEXT OF THE 2010 AMENDMENTS TO ARTICLE 9 OF THE UNIFORM
COMMERCIAL CODE promulgated  by  THE  AMERICAN  LAW  INSTITUTE  AND  THE
NATIONAL  CONFERENCE  OF  COMMISSIONERS  ON  UNIFORM  STATE LAWS, OR (2)
PROMULGATED BY THE DEPARTMENT OF STATE, IN EACH CASE except for a reason
as set forth in Section 9--516 (b).
  (c) Cooperative addendum form. A filing office  that  accepts  written
records  may  not refuse to accept a written cooperative addendum in the
form promulgated by the department of state except for a reason  as  set
forth in Section 9--516 (b).
  S  20.    Section  51  of chapter 505 of the laws of 2014 amending the
uniform commercial code relating to modernizing commercial  law  in  New
York state, is amended to read as follows:
  S 51. This act shall take effect immediately and shall apply to trans-
actions entered into on or after [such date] DECEMBER 17, 2014; PROVIDED
HOWEVER THAT:
  (A)  WITH  RESPECT  TO  SECTIONS TWENTY-SIX THROUGH FIFTY OF THIS ACT,
SUBJECT TO SUBDIVISION (B) OF THIS SECTION, A "TRANSACTION ENTERED  INTO
ON OR AFTER DECEMBER 17, 2014" SHALL MEAN THE CREATION OF AN ENFORCEABLE
SECURITY  INTEREST  BETWEEN THE DEBTOR AND THE SECURED PARTY PURSUANT TO
AN AGREEMENT ORIGINALLY ENTERED INTO ON OR AFTER DECEMBER  17,  2014.  A
TERM  SHEET  OR  OTHER  PROPOSAL FOR THE CREATION OF A SECURITY INTEREST
SHALL NOT CONSTITUTE A "TRANSACTION."
  (B) A "TRANSACTION ENTERED INTO ON OR AFTER DECEMBER 17,  2014"  SHALL
ALSO  INCLUDE  ANY  ENFORCEABLE SECURITY INTEREST CREATED PURSUANT TO AN
AGREEMENT ORIGINALLY ENTERED INTO PRIOR TO DECEMBER 17,  2014  THAT  HAS
BEEN  AMENDED, MODIFIED, SUPPLEMENTED OR RESTATED ON OR AFTER   DECEMBER
17, 2014 IF, BUT ONLY IF, SUCH AMENDMENT,  MODIFICATION,  SUPPLEMENT  OR
RESTATEMENT EXPRESSLY PROVIDES THAT THE PARTIES INTEND THAT THE SECURITY
INTEREST THEREUNDER CONSTITUTE A "TRANSACTION" SUBJECT TO THIS SECTION.
  (C)  EXCEPT  AS OTHERWISE PROVIDED IN SUBDIVISION (B) OF THIS SECTION,
NEITHER (I) THE PROVISION OF ADDITIONAL FINANCING TO A DEBTOR SECURED BY
AN AGREEMENT ORIGINALLY ENTERED INTO PRIOR TO DECEMBER  17,  2014,  (II)
THE  ATTACHMENT  OF  THE SECURITY INTEREST TO AFTER-ACQUIRED PROPERTY OF
THE DEBTOR PURSUANT TO AN AGREEMENT ORIGINALLY  ENTERED  INTO  PRIOR  TO
DECEMBER 17, 2014, NOR (III) THE DEBTOR'S PROVISION OF ADDITIONAL COLLA-
TERAL  TO  THE  SECURED  PARTY  PURSUANT  TO AN AMENDMENT, MODIFICATION,
SUPPLEMENT OR RESTATEMENT OF AN AGREEMENT ORIGINALLY ENTERED INTO  PRIOR

S. 5502--A                         10

TO DECEMBER 17, 2014, SHALL, WITHOUT THE ACTIONS REFERRED TO IN SUBDIVI-
SION  (B)  OF THIS SECTION, CONSTITUTE A "TRANSACTION ENTERED INTO ON OR
AFTER DECEMBER 17, 2014" WITHIN THE MEANING OF THIS SECTION.  SIMILARLY,
EXCEPT  AS  OTHERWISE  PROVIDED  IN  SUBDIVISION  (D)  OF  THIS SECTION,
SECTIONS TWENTY-SIX THROUGH FIFTY OF THIS ACT SHALL NOT APPLY TO ACTIONS
TAKEN ON  OR  AFTER  DECEMBER  17,  2014  TO  PERFECT  OR  MAINTAIN  THE
PERFECTION  OF  A  SECURITY INTEREST UNLESS THE CREATION OF THE SECURITY
INTEREST TO WHICH SUCH PERFECTION RELATES SHALL CONSTITUTE A TRANSACTION
WITHIN THE MEANING OF EITHER SUBDIVISION (A) OR (C) OF THIS SECTION.
  (D) NOTWITHSTANDING THE FOREGOING, THIS ACT SHALL APPLY TO ALL INITIAL
FINANCING STATEMENTS FILED ON OR AFTER DECEMBER 17, 2014  REGARDLESS  OF
WHETHER  OR  NOT  THEY RELATE TO A "TRANSACTION ENTERED INTO ON OR AFTER
DECEMBER 17, 2014." CONVERSELY, THIS ACT  SHALL  NOT  APPLY  TO  INITIAL
FINANCING  STATEMENTS  FILED PRIOR TO DECEMBER 17, 2014 OR TO ANY AMEND-
MENTS THEREOF REGARDLESS OF WHEN SUCH AMENDMENTS ARE FILED EVEN IF  SUCH
FINANCING  STATEMENTS  RELATE TO A "TRANSACTION ENTERED INTO ON OR AFTER
DECEMBER 17, 2014."
  (E) THIS ACT SHALL NOT APPLY TO A DOCUMENT OF TITLE THAT IS ISSUED  OR
A BAILMENT THAT ARISES BEFORE THE EFFECTIVE DATE OF THIS ACT.
  S  21.  This  act  shall  take effect on the same date and in the same
manner as chapter 505 of the laws of 2014 took effect, and  shall  apply
to  transactions  entered  into on or after December 17, 2014; provided,
however, that:
  (a) With respect to sections fifteen through  nineteen  of  this  act,
subject  to subdivision (b) of this section, a "transaction entered into
on or after December 17, 2014" shall mean the creation of an enforceable
security interest between the debtor and the secured party  pursuant  to
an  agreement  originally  entered into on or after December 17, 2014. A
term sheet or other proposal for the creation  of  a  security  interest
shall not constitute a "transaction."
  (b)  A  "transaction entered into on or after December 17, 2014" shall
also include any enforceable security interest created  pursuant  to  an
agreement  originally  entered  into prior to December 17, 2014 that has
been amended, modified, supplemented or restated on  or  after  December
17,  2014  if,  but only if, such amendment, modification, supplement or
restatement expressly provides that the parties intend that the security
interest thereunder constitute a "transaction" subject to this section.
  (c) Except as otherwise provided in subdivision (b) of  this  section,
neither (i) the provision of additional financing to a debtor secured by
an  agreement  originally  entered into prior to December 17, 2014, (ii)
the attachment of the security interest to  after-acquired  property  of
the  debtor  pursuant  to  an agreement originally entered into prior to
December 17, 2014, nor (iii) the debtor's provision of additional colla-
teral to the secured  party  pursuant  to  an  amendment,  modification,
supplement  or restatement of an agreement originally entered into prior
to December 17, 2014, shall, without the actions referred to in subdivi-
sion (b) of this section, constitute a "transaction entered into  on  or
after December 17, 2014" within the meaning of this section.  Similarly,
except  as  otherwise  provided  in  subdivision  (d)  of  this section,
sections fifteen through nineteen of this act shall not apply to actions
taken on  or  after  December  17,  2014  to  perfect  or  maintain  the
perfection  of  a  security interest unless the creation of the security
interest to which such perfection relates shall constitute a transaction
within the meaning of either this subdivision or subdivision (a) of this
section.

S. 5502--A                         11

  (d) Notwithstanding the foregoing, this act shall apply to all initial
financing statements filed on or after December 17, 2014  regardless  of
whether  or  not  they relate to a "transaction entered into on or after
December 17, 2014." Conversely, this act  shall  not  apply  to  initial
financing  statements  filed prior to December 17, 2014 or to any amend-
ments thereof regardless of when such amendments are filed even if  such
financing  statements  relate to a "transaction entered into on or after
December 17, 2014."
  (e) This act shall not apply to a document of title that is issued  or
a bailment that arises before the effective date of this act.