AN ACT to amend Tennessee Code Annotated, Title 47, relative to Uniform Commercial Code financing statement filings.
Summary
SB0544 amends Tennessee’s Uniform Commercial Code provisions governing the filing and review of financing statements. The bill changes the process for handling a petition for review of a financing statement filing, requiring the filing office to forward the petition, the challenged financing statement, and the public official’s notarized affidavit to the Secretary of State’s administrative procedures division within three business days, along with a request for hearing.
The bill also adds new notice-and-documentation requirements after an administrative law judge issues a determination. If the secured party receives an adverse determination, the secured party must provide a copy to the filing office. Likewise, if a public official files an affidavit under this part, that official must provide the determination to the filing office, and if the secured party seeks judicial review under the Administrative Procedures Act, the secured party must notify the filing office within seven days of filing the petition for review.
Impact
The bill updates Tennessee Code Annotated § 47-9-513 to streamline and clarify the administrative review process for disputed UCC financing statement filings. Its practical effect is to impose specific deadlines and reporting duties on filing offices, secured parties, and public officials, improving the flow of information between the Secretary of State’s filing office and the administrative and judicial review process. The changes affect parties involved in secured transactions, lien filings, and challenges to allegedly improper financing statements.
Sentiment
The bill appears to have been received favorably and without opposition. It was recommended for passage in the Senate Commerce and Labor Committee by a 7-0 vote and then adopted on the Senate floor by a 30-0 vote, indicating broad bipartisan support and little controversy in the recorded votes.
Contention
No substantive opposition is reflected in the available committee or floor vote history. The only discernible issue is procedural: the bill tightens the timeline and notification requirements for petitions, administrative determinations, and judicial review in UCC filing disputes. Any concern would likely come from parties affected by the added compliance steps, such as secured parties or filing offices, but no specific objections are recorded in the provided materials.