Consumer And Commercial Transactions - Digest of Bills

Digest of Bills - 1995

CONSUMER AND COMMERCIAL TRANSACTIONS

S.B. 95-91 Security interests - filing requirements - central indexing system - appropriation. Creates a central system ("system") for the indexing of all filings made pursuant to the "Uniform Commercial Code - Secured Transactions". Creates the central indexing system board to oversee and implement the system, study its future expansion, establish filing fees, and determine which filings to perfect security interests and notices of other agricultural liens shall be indexed in the system.

Establishes the central indexing system cash fund to fund the system. Imposes a $1 surcharge on all filings and recordings, except those for which there is no charge, to fund computer and related expenses needed for the electronic filing and retrieval of lien index data. Repeals the surcharge, effective December 31, 2000.

Effective July 1, 1996, requires the office of the secretary of state and any county clerk and recorder receiving a filing to perfect a security interest or agricultural lien to transmit a copy of the filing to the central indexing system in a timely manner.

Before July 1, 1996, current law concerning the proper place to file in order to perfect a security interest is retained, except that:

A defect in the description of collateral in an effective financing statement shall not affect the validity of a financing statement filed with the county clerk and recorder pursuant to the Uniform Commercial Code; and
When an effective financing statement is filed within 45 days after the filing with the county clerk and recorder, the priority of the filing shall be determined by the date and time of the earlier filing, but if the effective financing statement is not filed within 45 days, the priority shall be determined by the date and time of the filing of the effective financing statement.

Effective July 1, 1996, the proper place to file in order to perfect a security interest is:

When the collateral is timber or other substances to be extracted or goods which are to become fixtures, then in the real estate records in the office of the county clerk and recorder where the real estate is located; or, in all other cases,
In the office of the secretary of state or the office of the county clerk and recorder of any county.

Eliminates a provision stating that a filing made in good faith but in the wrong place or not in all of the required places is effective to the extent it does comply with requirements. Eliminates the requirement that a financing statement be signed by the debtor. Eliminates the requirement that both spouses sign a financing statement for a security interest in consumer goods to be enforceable.

Eliminates a provision stating that a financing statement is sufficient to perfect a security interest in certain types of collateral when signed only by the secured party. Eliminates the requirement that a continuation statement be signed by the secured party when filed. Eliminates the requirement that a continuation statement signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record. Eliminates requirements that filings with the secretary of state be typed.

Enables a secured party of record to release the collateral described in the financing statement by using an unsigned statement of release. Increases filing, indexing, and other fees to $15.

Extends until December 31, 1996, the repeal date for the central filing system committee; except that if the members of the central indexing system board are appointed before that date, then the committee shall cease to exist on the final date of such appointment.

States that a financing or continuation statement filed before July 1, 1996, which has not lapsed by December 31, 1997, shall lose its priority rights unless a new continuation statement is filed after July 1, 1996, but on or before December 31, 1997. The new statement must identify the original statement and state that such original statement is still effective. The priority of the original filing shall be preserved for five years after the date of filing of the new statement. Provides that if a statement filed before July 1, 1996, lapses after that date but before December 31, 1997, it may be continued by filing a new continuation statement.

For the fiscal year beginning July 1, 1995, appropriates $1,915,584 to the department of state if the central indexing system board contracts for the purpose of implementing the central indexing system for the implementation of this act, of which $802,889 shall be appropriated to the department of state, $14,421 shall be appropriated to the department of law, and $410,595 shall be appropriated to the department of revenue.

For the fiscal year beginning July 1, 1995, appropriates $702,100 to the department of state if such department is selected to operate the central indexing system for the implementation of the act.

APPROVED by Governor May 31, 1995
EFFECTIVE July 1, 1996

H.B. 95-1039 Unsolicited goods - magazine subscription cancellation. Requires that the sender of a magazine or periodical cancel a subscription if the recipient returns the invoice marked "cancel" or otherwise notes that he or she wishes to terminate the subscription. Requires the sender to refund the price of the remainder of the cancelled prepaid subscription.

APPROVED by Governor May 4, 1995
EFFECTIVE July 1, 1995

H.B. 95-1076 Consumer credit transactions - delinquency charge limitation. Amends the "Uniform Consumer Credit Code" to limit the delinquency charge on an instalment not paid within ten days after the due date to not more than $15 with respect to a consumer loan, refinancing, or consolidation that is not precomputed and that is not secured by real property. Deletes current language limiting such charges to 5% of the unpaid amount or $10, whichever is less.

APPROVED by Governor April 7, 1995
EFFECTIVE April 7, 1995

H.B. 95-1242 Music copyrights - contracts for the payment of royalties - enforcement. Establishes requirements for contracts that require a proprietor to pay royalties to a copyright owner or performing rights society when certain nondramatic musical works are performed in public. Exempts contracts entered into between a performing rights society and a broadcaster licensed by the FCC.

Requires that certain information be provided to a proprietor at least 72 hours before the execution of a contract, but allows a proprietor to waive the 72-hour review period if there is no coercion or undue influence.

Requires that royalty contracts be in a certain form and include certain provisions, including a list of the copyrighted works licensed under the contract and notice of a 72-hour rescission period.

Prohibits a copyright owner, performing rights society, or an agent or employee of such an owner or society from:

Entering the property of a proprietor for the purpose of discussing the payment of royalties or the use of copyrighted works without first identifying himself or herself and making known the purpose of the investigation;
Collecting a royalty payment or other fee pursuant to a contract that does not meet stated requirements;
Engaging in coercive conduct or an unfair or deceptive trade practice that substantially disrupts a proprietor's business;
Using an unfair or deceptive act or practice in negotiating with a proprietor.

States that nothing in the Act shall prohibit a performing rights society from conducting investigations concerning the use of music or informing a proprietor of his or her obligations under federal copyright laws.

Grants proprietors the authority to sue or bring a counterclaim against a copyright owner or performing rights society to enjoin a violation and recover damages sustained as a result of a violation. Grants reasonable attorney fees to the prevailing party. If the prevailing party is a proprietor, he or she may also recover reasonable costs and treble damages, but in no event less than $1,000. Prohibits a proprietor from bringing a counterclaim against a party other than the original complainant.

APPROVED by Governor June 3, 1995
EFFECTIVE July 1, 1995