S. 5502 2
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 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
S. 5502 3
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
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
S. 5502 4
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
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
S. 5502 5
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
with this article is not a retail installment sales contract, agreement,
or obligation as defined in this chapter nor a security interest as
S. 5502 6
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;
(5) in the case of an initial financing statement or an amendment
that provides a name of a debtor which was not previously
S. 5502 7
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
(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
S. 5502 8
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) 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
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
S. 5502 9
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 SET FORTH AS FORM UCC3 AND FORM
UCC3AD 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 COMMISSION-
ERS ON THE 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
TO DECEMBER 17, 2014, SHALL, WITHOUT THE ACTIONS REFERRED TO IN SUBDIVI-
S. 5502 10
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 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
S. 5502 11
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.
