Banking and Finance Law Daily Wrap Up, SECURED TRANSACTIONS—Maryland adds notice requirement for financing statements filed against individuals, (Apr 9, 2014)

By Lisa M. Goolik, J.D.

Maryland has amended the procedures under Article 9 of the Uniform Commercial Code for the filing and recording of financing statements to require that, if both the secured party and debtor named on a filed financing statement are individuals, the filing office must provide notice to a debtor of the financing statement.

The filing office will be required to establish the form of the notice, but it must contain, at a minimum, the name and address of the secured party and the debtor and the remedies available to the debtor if the debtor believes that the financing statement is erroneously or fraudulently filed.

The new procedure does not apply to mortgages or deeds of trust.

The law (Ch. 58) takes effect on Oct. 1, 2014.

LegislativeActivity: MarylandNews SecuredTransactions