S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5502
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 14, 2015
                                      ___________
       Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary
       AN ACT to amend the uniform commercial code, the civil practice law  and
         rules, the lien law, the general obligations law, the banking law, the
         general  business  law,  the  arts  and  cultural  affairs law and the
         personal property law, in relation to making technical corrections  to
         conform  with  revisions  to the uniform commercial code; and to amend
         chapter 505 of the laws of 2014 amending the uniform  commercial  code
         relating  to modernizing commercial law in New York state, in relation
         to making technical amendments thereto
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph  (g)  of subsection 1 of section 4-A-105 of the
    2  uniform commercial code, as added by chapter 208 of the laws of 1990, is
    3  amended to read as follows:
    4  (g) "Prove" with respect to a fact means to meet the  burden  of  estab-
    5         lishing the fact (subsection (B)(8) of section [1-201] 1--201).
    6    S  2.  Subsection 1 of section 4-A-106 of the uniform commercial code,
    7  as added by chapter 208 of the laws of  1990,  is  amended  to  read  as
    8  follows:
    9    (1) The time of receipt of a payment order or communication cancelling
   10  or  amending  a  payment  order is determined by the rules applicable to
   11  receipt of a notice stated  in  [subsection  (27)  of]  Section  [1-201]
   12  1--202.    A  receiving bank may fix a cut-off time or times on a funds-
   13  transfer business day for the receipt and processing of  payment  orders
   14  and  communications  cancelling  or  amending  payment orders. Different
   15  cut-off times may apply to payment orders, cancellations, or amendments,
   16  or to different categories of payment orders, cancellations,  or  amend-
   17  ments.  A  cut-off time may apply to senders generally or different cut-
   18  off times may apply  to  different  senders  or  categories  of  payment
   19  orders.  If  a  payment  order or communication cancelling or amending a
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07881-04-5
       S. 5502                             2
    1  payment order is received after the close of a  funds-transfer  business
    2  day  or  after the appropriate cut-off time on a funds-transfer business
    3  day, the receiving bank may treat the payment order or communication  as
    4  received at the opening of the next funds-transfer business day.
    5    S  3.  Subsection 2 of section 4-A-204 of the uniform commercial code,
    6  as added by chapter 208 of the laws of  1990,  is  amended  to  read  as
    7  follows:
    8    (2)  Reasonable time under subsection (1) may be fixed by agreement as
    9  stated in [subsection (1) of] Section [1-204] 1--302(B), but  the  obli-
   10  gation of a receiving bank to refund payment as stated in subsection (1)
   11  may not otherwise be varied by agreement.
   12    S  4. Subsection (c) of section 5--103 of the uniform commercial code,
   13  as added by chapter 471 of the laws of  2000,  is  amended  to  read  as
   14  follows:
   15    (c) With  the exception of this subsection, subsections (a) and (d) of
   16  this section, paragraphs (9) and  (10)  of  subsection  (a)  of  section
   17  5--102,  subsection (d) of section 5--106, and subsection (d) of section
   18  5--114, and except to the  extent  prohibited  in  [subsection  (3)  of]
   19  section [1--102] 1--302 and subsection (d) of section 5--117, the effect
   20  of  this  article may be varied by agreement or by a provision stated or
   21  incorporated by reference in an undertaking. A term in an  agreement  or
   22  undertaking  generally excusing liability or generally limiting remedies
   23  for failure to perform obligations is not sufficient to vary obligations
   24  prescribed by this article.
   25    S 5. Subdivision (c) of rule 4518 of the civil practice law and rules,
   26  as amended by chapter 170 of the laws of 1994, is  amended  to  read  as
   27  follows:
   28    (c)  Other records. All records, writings and other things referred to
   29  in sections 2306 and 2307 are admissible in evidence under this rule and
   30  are prima facie evidence of the facts contained, provided  they  bear  a
   31  certification or authentication by the head of the hospital, laboratory,
   32  department  or  bureau of a municipal corporation or of the state, or by
   33  an employee delegated for that purpose  or  by  a  qualified  physician.
   34  Where  a  hospital  record  is in the custody of a warehouse[, or "ware-
   35  houseman"] as that term is defined by paragraph [(h) of subdivision one]
   36  THIRTEEN OF SUBSECTION (A) of section  [7-102]  7--102  of  the  uniform
   37  commercial  code,  pursuant  to  a plan approved in writing by the state
   38  commissioner of health, admissibility  under  this  subdivision  may  be
   39  established by a certification made by the manager of the warehouse that
   40  sets  forth (i) the authority by which the record is held, including but
   41  not limited to a court order, order of the  commissioner,  or  order  or
   42  resolution  of  the governing body or official of the hospital, and (ii)
   43  that the record has been in the exclusive custody of such warehouse  [or
   44  warehousemen] since its receipt from the hospital or, if another has had
   45  access  to it, the name and address of such person and the date on which
   46  and the circumstances under which such access was had.  Any  [warehouse-
   47  man] WAREHOUSE providing a certification as required by this subdivision
   48  shall  have  no liability for acts or omissions relating thereto, except
   49  for intentional misconduct, and the [warehouseman] WAREHOUSE is  author-
   50  ized to assess and collect a reasonable charge for providing the certif-
   51  ication described by this subdivision.
   52    S 6. Section 200 of the lien law, as amended by chapter 30 of the laws
   53  of 1968, is amended to read as follows:
   54    S  200.  Sale  of  personal property to satisfy a lien. A lien against
   55  personal property, other than the lien  of  a  [warehouseman]  WAREHOUSE
   56  pursuant to section 7--209 of the uniform commercial code, the lien of a
       S. 5502                             3
    1  carrier  pursuant  to  section  7--307 of the uniform commercial code, a
    2  security interest in goods and the lien of a keeper of a  hotel,  apart-
    3  ment  hotel,  inn,  boarding-house or lodging-house, except an immigrant
    4  lodging-house,  if  in the legal possession of the lienor, may be satis-
    5  fied by the sale of such property according to the  provisions  of  this
    6  article.
    7    S  7.  Subdivision 1 of section 5-1401 of the general obligations law,
    8  as added by chapter 421 of the laws of  1984,  is  amended  to  read  as
    9  follows:
   10    1.  The  parties to any contract, agreement or undertaking, contingent
   11  or otherwise, in consideration of, or relating to any obligation arising
   12  out of a transaction covering in the aggregate not less than two hundred
   13  fifty thousand dollars, including a  transaction  otherwise  covered  by
   14  subsection [one] (A) of section [1-105] 1--301 of the uniform commercial
   15  code, may agree that the law of this state shall govern their rights and
   16  duties  in  whole or in part, whether or not such contract, agreement or
   17  undertaking bears a reasonable relation  to  this  state.  This  section
   18  shall  not apply to any contract, agreement or undertaking (a) for labor
   19  or personal services, (b) relating  to  any  transaction  for  personal,
   20  family  or  household  services,  or  (c)  to the extent provided to the
   21  contrary in subsection [two]  (C)  of  section  [1-105]  1--301  of  the
   22  uniform commercial code.
   23    S  8. Subdivision 1-c of section 7-101 of the general obligations law,
   24  as amended by chapter 84 of the laws of 2001,  is  amended  to  read  as
   25  follows:
   26    1-c.  This  section  shall  apply  to  money  deposited or advanced on
   27  contracts for the use or rental of personal  property  as  security  for
   28  performance  of  the  contract  or  to  be applied to payments upon such
   29  contract when due, only if (a) such contract is governed by the laws  of
   30  this  state as the result of a choice of law provision in such contract,
   31  in accordance with section [1-105] 1--301 of the uniform commercial code
   32  (subject to the limitations on choice of law by the parties to a consum-
   33  er lease under section 2-A-106 of the uniform commercial code), or  such
   34  contract  is  otherwise governed by the laws of this state in accordance
   35  with applicable conflict of laws rules, and (b) the  lessee  under  such
   36  contract is located within this state, within the meaning of the uniform
   37  commercial code (with respect to the location of debtors), except that a
   38  foreign  air carrier under the Federal Aviation Act of 1958, as amended,
   39  shall not be deemed located in this state solely as a result of having a
   40  designated office of an agent upon whom service of process may  be  made
   41  located in this state.
   42    S  9.  Subdivisions  1  and  2  of  section 138 of the banking law, as
   43  amended by chapter 689 of the laws of  1984,  are  amended  to  read  as
   44  follows:
   45    1.  Notwithstanding  section  [1-105] 1--301 of the uniform commercial
   46  code, any bank or trust company or national bank located in  this  state
   47  which  in  accordance  with  the provisions of this chapter or otherwise
   48  applicable law shall have opened and occupied a branch office or  branch
   49  offices  in  any  foreign  country  shall  be liable for contracts to be
   50  performed at such branch office or offices and for deposits to be repaid
   51  at such branch office or offices to no greater extent than a bank, bank-
   52  ing  corporation  or  other  organization  or  association  for  banking
   53  purposes  organized  and existing under the laws of such foreign country
   54  would be liable under its laws. The laws of such foreign country for the
   55  purpose of this section shall be deemed to include  all  acts,  decrees,
   56  regulations  and  orders promulgated or enforced by a dominant authority
       S. 5502                             4
    1  asserting governmental, military or police power  of  any  kind  at  the
    2  place where any such branch office is located, whether or not such domi-
    3  nant authority be recognized as a de facto or de jure government.
    4    2.  Notwithstanding  section  [1-105] 1--301 of the uniform commercial
    5  code, if by action of any such dominant authority which  is  not  recog-
    6  nized  by  the  United  States  as the de jure government of the foreign
    7  territory concerned, any property  situated  in  or  any  amount  to  be
    8  received in such foreign territory and carried as an asset of any branch
    9  office  of  such  bank or trust company or national bank in such foreign
   10  territory is seized, destroyed or cancelled, then the liability of  such
   11  bank  or  trust  company  or  national  bank for any deposit theretofore
   12  received and thereafter to be repaid by it, and for any contract  there-
   13  tofore  made  and thereafter to be performed by it, at any branch office
   14  in such foreign territory shall be reduced pro tanto by  the  proportion
   15  that  the  value (as shown by the books or other records of such bank or
   16  trust company or national bank at the time of such seizure,  destruction
   17  or cancellation) of such assets bears to the aggregate of all the depos-
   18  it and contract liabilities of the branch office or offices of such bank
   19  or trust company or national bank in such foreign territory, as shown at
   20  such time by the books or other records of such bank or trust company or
   21  national bank.
   22    S  10. Paragraphs (a) and (b) of subdivision 3 of section 204-a of the
   23  banking law, as amended by chapter 552 of the laws of 1962, are  amended
   24  to read as follows:
   25    (a)  Notwithstanding  section [1-105] 1--301 of the uniform commercial
   26  code, any foreign banking corporation doing business in this state under
   27  a license issued by the superintendent in accordance with the provisions
   28  of this chapter shall be liable  in  this  state  for  contracts  to  be
   29  performed  at  its  office  or  offices  in any foreign country, and for
   30  deposits to be repaid at such office or offices, to  no  greater  extent
   31  than  a  bank,  banking corporation or other organization or association
   32  for banking purposes organized and  existing  under  the  laws  of  such
   33  foreign country would be liable under its laws. The laws of such foreign
   34  country  for  the purpose of this subdivision shall be deemed to include
   35  all acts, decrees, regulations and orders promulgated or enforced  by  a
   36  dominant  authority  asserting governmental, military or police power of
   37  any kind at the place where any such office is located, whether  or  not
   38  such  dominant  authority be recognized as a de facto or de jure govern-
   39  ment.
   40    (b) Notwithstanding section [1-105] 1--301 of the  uniform  commercial
   41  code,  if  by  action of any such dominant authority which is not recog-
   42  nized by the United States as the de  jure  government  of  the  foreign
   43  territory  concerned,  any  property  situated  in  or  any amount to be
   44  received in such foreign territory and carried as an asset of any office
   45  of such foreign banking corporation in such foreign territory is seized,
   46  destroyed or cancelled, then the liability, if any,  in  this  state  of
   47  such  foreign  banking  corporation for any deposit theretofore received
   48  and thereafter to be repaid by it, and for any contract theretofore made
   49  and thereafter to be performed by it, at  any  office  in  such  foreign
   50  territory  shall  be  reduced pro tanto by the proportion that the value
   51  (as shown by the books or other records of such foreign  banking  corpo-
   52  ration,  at  the  time  of such seizure, destruction or cancellation) of
   53  such assets bears to the aggregate  of  all  the  deposit  and  contract
   54  liabilities of the office or offices of such foreign banking corporation
   55  in  such  foreign territory, as shown at such time by the books or other
   56  records of such foreign banking corporations. Nothing contained in  this
       S. 5502                             5
    1  paragraph  shall  diminish or otherwise affect the liability of any such
    2  foreign banking corporation to any corporation, firm or individual which
    3  at the time of such seizure, destruction or  cancellation  was  incorpo-
    4  rated or resident in any state of the United States.
    5    S  11. Subdivision 4 of section 11.01 of the arts and cultural affairs
    6  law, as added by chapter 849 of the laws of 1984, is amended to read  as
    7  follows:
    8    4.  "Creditors"  means  "creditor"  as defined in [subdivision twelve]
    9  PARAGRAPH THIRTEEN of SUBSECTION (B) OF section [1-201]  1--201  of  the
   10  uniform [commerical] COMMERCIAL code.
   11    S  12.  Subdivision  5 of section 331 of the personal property law, as
   12  added by chapter 1 of the laws of 1994, is amended to read as follows:
   13    5. "Retail lease agreement" or "agreement" means an agreement, entered
   14  into in this state, for the lease of a  motor  vehicle,  and  which  may
   15  include  the  purchase  of  goods  or  services incidental thereto, by a
   16  retail lessee for a scheduled term exceeding four months, whether or not
   17  the lessee has the option to purchase or otherwise become the  owner  of
   18  the  vehicle  at the expiration of the agreement. The term includes such
   19  an agreement wherever entered into if executed by  the  lessee  in  this
   20  state and if solicited in person by a person acting on his own behalf or
   21  that  of  the  lessor.  The  term  does  not include a retail instalment
   22  contract or a rental-purchase agreement as defined in articles nine  and
   23  eleven  of  this  chapter. An agreement that substantially complies with
   24  this article does not create a security interest in a motor  vehicle  as
   25  the  term  "security  interest" is defined in [subdivision thirty-seven]
   26  PARAGRAPH THIRTY-FIVE of SUBSECTION (B) OF section [1-201] 1--201 of the
   27  uniform commercial code.
   28    S 13. Paragraph (e) of subdivision 7 of section 399-w of  the  general
   29  business  law, as amended by chapter 140 of the laws of 1995, is amended
   30  to read as follows:
   31    (e) "Retail  lease  agreement"  or  "agreement"  means  an  agreement,
   32  entered into in this state, for the lease of goods and which may include
   33  the  purchase  of goods or services incidental thereto by a lessee for a
   34  scheduled term exceeding four months, whether or not the lessee has  the
   35  option  to  purchase  or  otherwise become the owner of the goods at the
   36  expiration of the agreement. The term includes such an agreement wherev-
   37  er entered into if executed by the lessee in this state and if solicited
   38  in person by a person acting on his or her own behalf  or  that  of  the
   39  lessor.  The  term  does  not  include a retail instalment contract or a
   40  rental-purchase agreement as defined in articles ten and eleven  of  the
   41  personal  property  law.  An  agreement that substantially complies with
   42  this article does not create a security interest in  the  goods  as  the
   43  term  "security interest" is defined in [subdivision thirty-seven] PARA-
   44  GRAPH THIRTY-FIVE of SUBSECTION (B) OF section  [1-201]  1--201  of  the
   45  uniform commercial code.
   46    S  14.  Subdivision  6 of section 500 of the personal property law, as
   47  amended by chapter 309 of the laws  of  2010,  is  amended  to  read  as
   48  follows:
   49    6.  "Rental-purchase  agreement"  means  an  agreement  for the use of
   50  merchandise by a consumer for primarily personal, family,  or  household
   51  purposes,  for an initial period of four months or less, that is renewa-
   52  ble with each payment after the initial  period  and  that  permits  the
   53  consumer to become the owner of the property. An agreement that complies
   54  with this article is not a retail installment sales contract, agreement,
   55  or  obligation  as  defined  in  this chapter nor a security interest as
       S. 5502                             6
    1  defined  in  [subdivision  thirty-seven]    PARAGRAPH   THIRTY-FIVE   of
    2  SUBSECTION (B) OF section [1-201] 1--201 of the uniform commercial code.
    3    S  15.    Subsection  (e)  of section 9--406 of the uniform commercial
    4  code, as added by chapter 84 of the laws of 2001, is amended to read  as
    5  follows:
    6    (e) Inapplicability of subsection (d) to certain sales. Subsection (d)
    7  does  not  apply to the sale of a payment intangible or promissory note,
    8  OTHER THAN A SALE PURSUANT TO A DISPOSITION UNDER SECTION 9--610  OR  AN
    9  ACCEPTANCE OF COLLATERAL UNDER SECTION 9--620.
   10    S 16. Subsection (b) of section 9--408 of the uniform commercial code,
   11  as  added  by  chapter  84  of  the  laws of 2001, is amended to read as
   12  follows:
   13    (b) Applicability of subsection (a) to  sales  of  certain  rights  to
   14  payment.  Subsection  (a)  applies  to  a security interest in a payment
   15  intangible or promissory note only if the security interest  arises  out
   16  of  a  sale  of  the payment intangible or promissory note, OTHER THAN A
   17  SALE PURSUANT TO A DISPOSITION UNDER SECTION 9--610 OR AN ACCEPTANCE  OF
   18  COLLATERAL UNDER SECTION 9--620.
   19    S 17. Subsection (b) of section 9--516 of the uniform commercial code,
   20  as  added  by  chapter  84  of  the  laws of 2001, is amended to read as
   21  follows:
   22    (b) Refusal to accept record; filing does not occur. Filing  does  not
   23  occur  with  respect  to a record that a filing office refuses to accept
   24  because:
   25         (1) the record is not communicated  by  a  method  or  medium  of
   26             communication authorized by the filing office;
   27         (2) an  amount equal to or greater than the applicable filing fee
   28             is not tendered;
   29         (3) the filing office is unable to index the record because:
   30             (A) in the case of an initial financing statement, the record
   31                 does not provide a name for the debtor;
   32             (B) in the case of an amendment or  [correction]  INFORMATION
   33                 statement, the record:
   34                 (i) does  not identify the initial financing statement as
   35                     required by Section 9--512 or 9--518, as  applicable;
   36                     or
   37                 (ii) identifies  an  initial  financing  statement  whose
   38                      effectiveness has lapsed under Section 9--515;
   39             (C) in the  case  of  an  initial  financing  statement  that
   40                 provides the name of a debtor identified as an individual
   41                 or  an amendment that provides a name of a debtor identi-
   42                 fied as an individual which was not  previously  provided
   43                 in  the  financing statement to which the record relates,
   44                 the record does not identify  the  debtor's  [last  name]
   45                 SURNAME; or
   46             (D) in  the  case  of  a  record  filed  in the filing office
   47                 described in Section 9--501 (a) (1), the record does  not
   48                 provide  a sufficient description of the real property to
   49                 which it relates;
   50         (4) in the case of an initial financing statement or an amendment
   51             that adds a secured party of  record,  the  record  does  not
   52             provide  a  name and mailing address for the secured party of
   53             record;
   54         (5) in the case of an initial financing statement or an amendment
   55             that provides a name of a debtor  which  was  not  previously
       S. 5502                             7
    1             provided  in  the  financing statement to which the amendment
    2             relates, the record does not:
    3             (A) provide a mailing address for the debtor; or
    4             (B) indicate  whether  the  NAME  PROVIDED AS THE NAME OF THE
    5                 debtor is THE NAME OF an individual or an organization;
    6             [(C) if the financing statement indicates that the debtor  is
    7                 an organization, provide:
    8                 (i) a type of organization for the debtor, or
    9                 (ii) a jurisdiction of organization for the debtor; or]
   10         (6) in  the case of an assignment reflected in an initial financ-
   11             ing statement under Section 9--514(a) or an  amendment  filed
   12             under  Section  9--514(b), the record does not provide a name
   13             and mailing address for the assignee; or
   14         (7) in the case of a continuation statement, the  record  is  not
   15             filed  within  the  six-month  period  prescribed  by Section
   16             9--515(d).
   17    S 18. Section 9--518 of the uniform commercial code, as added by chap-
   18  ter 84 of the laws of 2001 and subsection (d) as added by chapter 490 of
   19  the laws of 2013, is amended to read as follows:
   20  Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record.
   21    (a) [Correction statement] STATEMENT WITH RESPECT  TO  RECORD  INDEXED
   22  UNDER  PERSON'S  NAME.  A  person  may  file  in  the  filing  office [a
   23  correction] AN INFORMATION statement with respect to  a  record  indexed
   24  there  under the person's name if the person believes that the record is
   25  inaccurate or was wrongfully filed.
   26    (b) [Sufficiency] CONTENTS of [correction] statement UNDER  SUBSECTION
   27  (A)  OF  THIS  SECTION.  [A  correction]  AN INFORMATION statement UNDER
   28  SUBSECTION (A) OF THIS SECTION must:
   29         (1) identify the record to which it relates by:
   30             (A) the file number assigned to the initial financing  state-
   31                 ment to which the record relates; and
   32             (B) if  the  [correction]  INFORMATION statement relates to a
   33                 record filed in a  filing  office  described  in  Section
   34                 9--501(a)(1),  the date and time that the initial financ-
   35                 ing statement was filed and the information specified  in
   36                 Section 9--502(b);
   37         (2) indicate  that it is [a correction] AN INFORMATION statement;
   38             and
   39         (3) provide the basis for the person's belief that the record  is
   40             inaccurate  and  indicate  the  manner  in  which  the person
   41             believes the record should be amended to cure any  inaccuracy
   42             or  provide the basis for the person's belief that the record
   43             was wrongfully filed.
   44    (c) STATEMENT BY SECURED PARTY OF RECORD. A PERSON  MAY  FILE  IN  THE
   45  FILING  OFFICE  AN  INFORMATION STATEMENT WITH RESPECT TO A RECORD FILED
   46  THERE IF THE PERSON IS A SECURED PARTY OF RECORD  WITH  RESPECT  TO  THE
   47  FINANCING  STATEMENT  TO  WHICH THE RECORD RELATES AND BELIEVES THAT THE
   48  PERSON THAT FILED THE RECORD WAS NOT ENTITLED TO  DO  SO  UNDER  SECTION
   49  9--509(D).
   50    (D)  CONTENTS  OF  STATEMENT  UNDER SUBSECTION (C) OF THIS SECTION. AN
   51  INFORMATION STATEMENT UNDER SUBSECTION (C) OF THIS SECTION MUST:
   52    (1) IDENTIFY THE RECORD TO WHICH IT RELATES BY:
   53    (A) THE FILE NUMBER ASSIGNED TO THE  INITIAL  FINANCING  STATEMENT  TO
   54  WHICH THE RECORD RELATES; AND
   55    (B) IF THE INFORMATION STATEMENT RELATES TO A RECORD FILED IN A FILING
   56  OFFICE  DESCRIBED  IN  SECTION  9--501(A)(1),  THE DATE THAT THE INITIAL
       S. 5502                             8
    1  FINANCING STATEMENT WAS FILED AND THE INFORMATION SPECIFIED  IN  SECTION
    2  9--502(B);
    3    (2) INDICATE THAT IT IS AN INFORMATION STATEMENT; AND
    4    (3)  PROVIDE  THE  BASIS  FOR THE PERSON'S BELIEF THAT THE PERSON THAT
    5  FILED THE RECORD WAS NOT ENTITLED TO DO SO UNDER SECTION 9--509(D).
    6    (E) Record not affected by  [correction]  INFORMATION  statement.  The
    7  filing  of  [a  correction] AN INFORMATION statement does not affect the
    8  effectiveness of an initial financing statement or other filed record.
    9    [(d) Special proceeding to  redact  or  expunge  a  falsely  filed  or
   10  amended  financing  statement.  (1) Provided he or she is an employee of
   11  the state or a political subdivision thereof, a person identified  as  a
   12  debtor in a financing statement filed pursuant to this subpart may bring
   13  a  special  proceeding  against the named filer of such statement or any
   14  amendment thereof to invalidate the filing or  amendment  thereof  where
   15  such statement was falsely filed or amended; except that an attorney who
   16  is  not  an employee of the state or a political subdivision thereof may
   17  also bring a special proceeding hereunder where he or she represents  or
   18  has represented the respondent therein in a criminal court. Such special
   19  proceeding  shall  be governed by article four of the civil practice law
   20  and rules, and shall be commenced in the supreme court of Albany county,
   21  the county of the petitioner's residence or a county within the judicial
   22  district in which any property covered by  the  financing  statement  is
   23  located. No fee pursuant to article eighty of the civil practice law and
   24  rules shall be collected in such special proceeding.
   25    (2) The petition in a special proceeding hereunder shall plead that:
   26    (A)  the financing statement filed or amended by the respondent pursu-
   27  ant to section 9--509 was falsely filed or amended to retaliate for: (i)
   28  the performance of the petitioner's official duties in his or her capac-
   29  ity as an employee of the state or a political subdivision  thereof,  or
   30  (ii)  in  the case of a special proceeding brought by an attorney who is
   31  not an employee of the state or  a  political  subdivision  thereof,  to
   32  retaliate  for  the performance of the petitioner's duties in his or her
   33  capacity as an attorney for the respondent in a criminal court; and
   34    (B) such financing statement does not  relate  to  an  interest  in  a
   35  consumer-goods transaction, a commercial transaction, or any other actu-
   36  al transaction between the petitioner and the respondent; and
   37    (C) the collateral covered in such financing statement is the property
   38  of the petitioner; and
   39    (D)  prompt  redaction  or  invalidation of the financing statement is
   40  necessary to avert or mitigate prejudice to the petitioner.
   41    (3) If the court makes a written finding that the allegations in para-
   42  graph two of this subsection are established, the court shall order  the
   43  expungement  of such statement or its redaction in the public records in
   44  the office in which the financing statement is  filed,  as  appropriate,
   45  and  may  grant  any  additional relief authorized by section 9--625. In
   46  such case, the court shall cause a copy of its order to  be  filed  with
   47  the  secretary  of  state or other appropriate filing office pursuant to
   48  this chapter. Upon a finding  that  the  respondent  has  engaged  in  a
   49  repeated  pattern  of  false filings as found under this subsection, the
   50  court also may enjoin the respondent from filing or amending any further
   51  financing statement pursuant to this article without leave of the court.
   52  If the respondent is incarcerated at the time the court issues an  order
   53  containing  such  an  injunction,  the court shall cause the head of the
   54  correctional facility in which the respondent is incarcerated to receive
   55  a copy of such determination. The head of such a facility shall cause  a
   56  copy of such order to be provided to the respondent. In any instances of
       S. 5502                             9
    1  the  issuance  of such an injunction where the respondent has defaulted,
    2  the court shall direct service of such injunction upon the respondent.]
    3    S 19. Section 9--521 of the uniform commercial code, as added by chap-
    4  ter 84 of the laws of 2001, is amended to read as follows:
    5  Section 9--521. Uniform  Form of Written Financing Statement; Amendment;
    6                    and Cooperative Addendum.
    7    (a) Initial financing statement form. A  filing  office  that  accepts
    8  written  records  may  not  refuse to accept a written initial financing
    9  statement AND ADDENDUM in the form AND FORMAT THAT  IS  EITHER  (1)  SET
   10  FORTH  IN  THE  OFFICIAL TEXT OF THE 2010 AMENDMENTS TO ARTICLE 9 OF THE
   11  UNIFORM COMMERCIAL CODE PROMULGATED BY THE AMERICAN  LAW  INSTITUTE  AND
   12  THE  NATIONAL  CONFERENCE  OF COMMISSIONERS ON UNIFORM STATE LAWS OR (2)
   13  promulgated by the department of state, IN EACH CASE except for a reason
   14  as set forth in Section 9--516(b).
   15    (b) Amendment form. A filing office that accepts written  records  may
   16  not  refuse  to  accept a written [financing statement amendment] RECORD
   17  AND ADDENDUM in the form AND FORMAT SET FORTH  AS  FORM  UCC3  AND  FORM
   18  UCC3AD  THAT  IS  EITHER (1) SET FORTH IN THE FINAL OFFICIAL TEXT OF THE
   19  2010 AMENDMENTS TO ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE  promulgated
   20  by THE AMERICAN LAW INSTITUTE AND THE NATIONAL CONFERENCE OF COMMISSION-
   21  ERS  ON  THE UNIFORM STATE LAWS, OR (2) PROMULGATED BY THE DEPARTMENT OF
   22  STATE, IN EACH CASE except for a reason as set forth in  Section  9--516
   23  (b).
   24    (c) Cooperative  addendum  form.  A filing office that accepts written
   25  records may not refuse to accept a written cooperative addendum  in  the
   26  form  promulgated  by the department of state except for a reason as set
   27  forth in Section 9--516 (b).
   28    S 20.  Section 51 of chapter 505 of the  laws  of  2014  amending  the
   29  uniform  commercial  code  relating to modernizing commercial law in New
   30  York state, is amended to read as follows:
   31    S 51. This act shall take effect immediately and shall apply to trans-
   32  actions entered into on or after [such date] DECEMBER 17, 2014; PROVIDED
   33  HOWEVER THAT:
   34    (A) WITH RESPECT TO SECTIONS TWENTY-SIX THROUGH  FIFTY  OF  THIS  ACT,
   35  SUBJECT  TO SUBDIVISION (B) OF THIS SECTION, A "TRANSACTION ENTERED INTO
   36  ON OR AFTER DECEMBER 17, 2014" SHALL MEAN THE CREATION OF AN ENFORCEABLE
   37  SECURITY INTEREST BETWEEN THE DEBTOR AND THE SECURED PARTY  PURSUANT  TO
   38  AN  AGREEMENT  ORIGINALLY  ENTERED INTO ON OR AFTER DECEMBER 17, 2014. A
   39  TERM SHEET OR OTHER PROPOSAL FOR THE CREATION  OF  A  SECURITY  INTEREST
   40  SHALL NOT CONSTITUTE A "TRANSACTION."
   41    (B)  A  "TRANSACTION ENTERED INTO ON OR AFTER DECEMBER 17, 2014" SHALL
   42  ALSO INCLUDE ANY ENFORCEABLE SECURITY INTEREST CREATED  PURSUANT  TO  AN
   43  AGREEMENT  ORIGINALLY  ENTERED  INTO PRIOR TO DECEMBER 17, 2014 THAT HAS
   44  BEEN AMENDED, MODIFIED, SUPPLEMENTED OR RESTATED ON OR AFTER    DECEMBER
   45  17,  2014  IF,  BUT ONLY IF, SUCH AMENDMENT, MODIFICATION, SUPPLEMENT OR
   46  RESTATEMENT EXPRESSLY PROVIDES THAT THE PARTIES INTEND THAT THE SECURITY
   47  INTEREST THEREUNDER CONSTITUTE A "TRANSACTION" SUBJECT TO THIS SECTION.
   48    (C) EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION (B) OF  THIS  SECTION,
   49  NEITHER (I) THE PROVISION OF ADDITIONAL FINANCING TO A DEBTOR SECURED BY
   50  AN  AGREEMENT  ORIGINALLY  ENTERED INTO PRIOR TO DECEMBER 17, 2014, (II)
   51  THE ATTACHMENT OF THE SECURITY INTEREST TO  AFTER-ACQUIRED  PROPERTY  OF
   52  THE  DEBTOR  PURSUANT  TO  AN AGREEMENT ORIGINALLY ENTERED INTO PRIOR TO
   53  DECEMBER 17, 2014, NOR (III) THE DEBTOR'S PROVISION OF ADDITIONAL COLLA-
   54  TERAL TO THE SECURED  PARTY  PURSUANT  TO  AN  AMENDMENT,  MODIFICATION,
   55  SUPPLEMENT  OR RESTATEMENT OF AN AGREEMENT ORIGINALLY ENTERED INTO PRIOR
   56  TO DECEMBER 17, 2014, SHALL, WITHOUT THE ACTIONS REFERRED TO IN SUBDIVI-
       S. 5502                            10
    1  SION (B) OF THIS SECTION, CONSTITUTE A "TRANSACTION ENTERED INTO  ON  OR
    2  AFTER DECEMBER 17, 2014" WITHIN THE MEANING OF THIS SECTION.  SIMILARLY,
    3  EXCEPT  AS  OTHERWISE  PROVIDED  IN  SUBDIVISION  (D)  OF  THIS SECTION,
    4  SECTIONS TWENTY-SIX THROUGH FIFTY OF THIS ACT SHALL NOT APPLY TO ACTIONS
    5  TAKEN  ON  OR  AFTER  DECEMBER  17,  2014  TO  PERFECT  OR  MAINTAIN THE
    6  PERFECTION OF A SECURITY INTEREST UNLESS THE CREATION  OF  THE  SECURITY
    7  INTEREST TO WHICH SUCH PERFECTION RELATES SHALL CONSTITUTE A TRANSACTION
    8  WITHIN THE MEANING OF EITHER SUBDIVISION (A) OR (C) OF THIS SECTION.
    9    (D) NOTWITHSTANDING THE FOREGOING, THIS ACT SHALL APPLY TO ALL INITIAL
   10  FINANCING  STATEMENTS  FILED ON OR AFTER DECEMBER 17, 2014 REGARDLESS OF
   11  WHETHER OR NOT THEY RELATE TO A "TRANSACTION ENTERED INTO  ON  OR  AFTER
   12  DECEMBER  17,  2014."  CONVERSELY,  THIS  ACT SHALL NOT APPLY TO INITIAL
   13  FINANCING STATEMENTS FILED PRIOR TO DECEMBER 17, 2014 OR TO  ANY  AMEND-
   14  MENTS  THEREOF REGARDLESS OF WHEN SUCH AMENDMENTS ARE FILED EVEN IF SUCH
   15  FINANCING STATEMENTS RELATE TO A "TRANSACTION ENTERED INTO ON  OR  AFTER
   16  DECEMBER 17, 2014."
   17    (E)  THIS ACT SHALL NOT APPLY TO A DOCUMENT OF TITLE THAT IS ISSUED OR
   18  A BAILMENT THAT ARISES BEFORE THE EFFECTIVE DATE OF THIS ACT.
   19    S 21. This act shall take effect on the same  date  and  in  the  same
   20  manner  as  chapter 505 of the laws of 2014 took effect, and shall apply
   21  to transactions entered into on or after December  17,  2014;  provided,
   22  however, that:
   23    (a)  With  respect  to  sections fifteen through nineteen of this act,
   24  subject to subdivision (b) of this section, a "transaction entered  into
   25  on or after December 17, 2014" shall mean the creation of an enforceable
   26  security  interest  between the debtor and the secured party pursuant to
   27  an agreement originally entered into on or after December  17,  2014.  A
   28  term  sheet  or  other  proposal for the creation of a security interest
   29  shall not constitute a "transaction."
   30    (b) A "transaction entered into on or after December 17,  2014"  shall
   31  also  include  any  enforceable security interest created pursuant to an
   32  agreement originally entered into prior to December 17,  2014  that  has
   33  been  amended,  modified,  supplemented or restated on or after December
   34  17, 2014 if, but only if, such amendment,  modification,  supplement  or
   35  restatement expressly provides that the parties intend that the security
   36  interest thereunder constitute a "transaction" subject to this section.
   37    (c)  Except  as otherwise provided in subdivision (b) of this section,
   38  neither (i) the provision of additional financing to a debtor secured by
   39  an agreement originally entered into prior to December  17,  2014,  (ii)
   40  the  attachment  of  the security interest to after-acquired property of
   41  the debtor pursuant to an agreement originally  entered  into  prior  to
   42  December 17, 2014, nor (iii) the debtor's provision of additional colla-
   43  teral  to  the  secured  party  pursuant  to an amendment, modification,
   44  supplement or restatement of an agreement originally entered into  prior
   45  to December 17, 2014, shall, without the actions referred to in subdivi-
   46  sion  (b)  of this section, constitute a "transaction entered into on or
   47  after December 17, 2014" within the meaning of this section.  Similarly,
   48  except as  otherwise  provided  in  subdivision  (d)  of  this  section,
   49  sections fifteen through nineteen of this act shall not apply to actions
   50  taken  on  or  after  December  17,  2014  to  perfect  or  maintain the
   51  perfection of a security interest unless the creation  of  the  security
   52  interest to which such perfection relates shall constitute a transaction
   53  within the meaning of either subdivision (a) or (c) of this section.
   54    (d) Notwithstanding the foregoing, this act shall apply to all initial
   55  financing  statements  filed on or after December 17, 2014 regardless of
   56  whether or not they relate to a "transaction entered into  on  or  after
       S. 5502                            11
    1  December  17,  2014."  Conversely,  this  act shall not apply to initial
    2  financing statements filed prior to December 17, 2014 or to  any  amend-
    3  ments  thereof regardless of when such amendments are filed even if such
    4  financing  statements  relate to a "transaction entered into on or after
    5  December 17, 2014."
    6    (e) This act shall not apply to a document of title that is issued  or
    7  a bailment that arises before the effective date of this act.