An amendment to Article 9 of the Minnesota Uniform Commercial Code will require secured creditors to identify individual debtors on financing statements exactly as they are identified on their Minnesota-issued driver’s licenses or state identification cards. The amended law, Minn. Stat.§ 336.9–503, becomes effective on July 1, 2013. All financing statements filed on or after July 1, 2013, must comply with the new requirements.
Financing statements that already satisfy the current requirements for individual debtor identification will not be immediately impacted by the amendment. Their current periods of effectiveness will continue as they would have under pre-amendment law. But these filings must be brought into compliance with the amendment at the time of their continuation. Failure to conform with the amendment’s new individual debtor identification requirements after the continuation date could cause pre-amendment filings to lose their effectiveness.
In light of these changes to Minnesota law, lenders should review driver’s licenses and other state-issued identification cards as part of their due diligence requirements in connection with loans to individual debtors. Lenders should also update their procedures for amendments in the event of a debtor name change. Finally, lenders should consider whether their existing financing statements are compliant with the amendment and take steps necessary to continue their effectiveness after July 1, 2013.
If you have any questions or would like more information regarding the applicability of the new amendment, please contact your Lindquist & Vennum attorney.
This Legal Update is a periodic publication of Lindquist & Vennum PLLP and is intended to provide basic information about new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.