CHAPTER 66

FORMERLY

HOUSE BILL NO. 238

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO COMMERCE AND TRADE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend Article 9, Title 6 of the Delaware Code by adding a new § 9-111 which shall read as follows:

Ҥ 9-111. Law Governing Creation, Attachment and Enforcement of Security Interests; Characterizations; and Certain Other Rights.

(a) Law governing classification of collateral and creation, attachment and enforcement of security interests. If a security agreement is governed by the Laws of the State of Delaware, then those Laws shall govern, among other things:

(1) the classification of the collateral subject to that agreement; and

(2) the creation, attachment, validity and enforcement of the security interest.

(b) Law governing characterization of certain transactions. If an agreement is governed by the Laws of the State of Delaware, then those Laws shall govern, among other things:

(1) the characterization of a transaction subject to that agreement as (A) an interest in personal property or fixtures that secures payment or performance of an obligation, or (B) a sale, lease, bailment or consignment; and

(2) the characterization of a transaction subject to that agreement as a securitization transaction for purposes of Chapter 27A of this Title.”.

Section 2. Amend § 9-502(c), Article 9, Title 6 of the Delaware Code by inserting after subparagraph (4) of subsection (c) thereof a new sentence reading:

“A record of a mortgage is not a financing statement but is effective as a financing statement as provided in § 9-502(c).”.

Section 3. Amend § 9-516(c), Article 9, Title 6 of the Delaware Code by removing the “and” at the end of subparagraph (1)(a) thereof, replacing the period at the end of subparagraph (2)(b) thereof with a semicolon and adding new subparagraphs (3), (4), (5) and (6) as follows:

“(3) for an initial financing statement filed in a filing office described in § 9-501(a)(1) on the form specified in § 9-521(a), the requirements of § 9605(f) of Title 9 may be satisfied by placing the county tax assessment parcel identification number in box 4 of the form;

(4) for a financing statement amendment filed in a filing office described in § 9-501(a)(1) on the form specified in § 9-521(b), the requirements of § 9605(f) of Title 9 may be satisfied by placing the county tax assessment parcel identification number in box 8 of the form;

(5) for an initial financing statement filed in a filing office described in § 9-501(a)(1), the requirements of § 9605(h) of Title 9 shall be satisfied by including the information required by § 9-502(b); and

(6) for a financing statement amendment filed in a filing office described in § 9-501(a)(1), the requirements of § 9605(h) of Title 9 shall be satisfied by including the information required by § 9-512(a).”.

Section 4. Amend § 9-706(c), Article 9, Title 6 of the Delaware Code by deleting existing subparagraph (2) thereof in its entirety and substituting in lieu thereof the following:

“(2) identify the pre-effective-date financing statement by indicating the office in which the pre-effective-date financing statement was filed and providing the dates of filing and file numbers, if any, of the initial pre-effective-date financing statement and of the most recent continuation statement filed with respect to that financing statement; provided, that if the law of the jurisdiction governing perfection prior to the effective date of this Act required the filing of the pre-effective-date financing statement in both a central filing office and a local filing office, then an identification of the filing in the central filing office suffices for purposes of this subsection (c)(2); and”.”

Section 5. Amend subsection (c), § 2708, Subtitle II, Title 6 of the Delaware Code by striking “§ 1-105(2)”, and substituting in lieu thereof “§ 1-301(c)”.

Approved June 28, 2005