SCS HB 1066 -- UNIFORM COMMERCIAL CODE

This bill modifies Article 8 of the Uniform Commercial Code by
specifying that the August 28, 1997, amendments to the article
do not affect actions commenced before that date.  The bill also
specifies that if a security interest in a security is perfected
on August 28, 1997, but not in a manner that would be sufficient
to perfect the interest under the article as amended, the
interest remains perfected until December 31, 1998.  After that
date, the interest remains perfected if appropriate action under
the amended article is taken by December 31, 1998.  If a
security interest in a security is perfected on August 28, 1997,
and the interest was perfected in a manner that would be
sufficient to perfect the interest under the amended article, no
additional action is required to continue perfection.

The bill also gives a perfected security interest in a
manufactured home priority over the interests of encumbrances
upon the underlying real estate.  The priority only applies if
the security interest is perfected before the manufactured home
is placed on the real estate.

HB 1066 -- UNIFORM COMMERCIAL CODE (Clayton)

This bill modifies Article 8 of the Uniform Commercial Code by
specifying that the August 28, 1997, amendments to the article
do not affect actions commenced before that date.  The bill also
specifies that, if a security interest in a security is
perfected on August 28, 1997, but not in a manner that would be
sufficient to perfect the interest under the article as amended,
the interest remains perfected until December 31, 1998.  After
that date, the interest remains perfected if appropriate action
under the amended article is taken by December 31, 1998.  If a
security interest in a security is perfected on August 28, 1997,
and the interest was perfected in a manner that would be
sufficient to perfect the interest under the amended article, no
additional action is required to continue perfection.

FISCAL NOTE:  No impact on state funds.

HB 1066 -- UNIFORM COMMERCIAL CODE

SPONSOR:  Clayton

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Civil and Administrative Law by a vote of 13 to 0.

This bill modifies Article 8 of the Uniform Commercial Code by
specifying that the August 28, 1997, amendments to the article
do not affect actions commenced before that date.  The bill also
specifies that, if a security interest in a security is
perfected on August 28, 1997, but not in a manner that would be
sufficient to perfect the interest under the article as amended,
the interest remains perfected until December 31, 1998.  After
that date, the interest remains perfected if appropriate action
under the amended article is taken by December 31, 1998.  If a
security interest in a security is perfected on August 28, 1997,
and the interest was perfected in a manner that would be
sufficient to perfect the interest under the amended article, no
additional action is required to continue perfection.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill operates as cleanup
legislation that allows lenders to make a smooth transition to
the new law.

Testifying for the bill were Representative Clayton; and
Missouri Bar Association, Business Law Committee.

OPPONENTS:  There was no opposition voiced to the committee.

Michael Warrick, Legislative Analyst

HB 1066 -- Uniform Commercial Code

Sponsor:  Clayton

This bill modifies Article 8 of the Uniform Commercial Code by
specifying that the August 28, 1997, amendments to the article
do not affect actions commenced before that date.  The bill also
specifies that, if a security interest in a security is
perfected on August 28, 1997, but not in a manner that would be
sufficient to perfect the interest under the article as amended,
the interest remains perfected until December 31, 1998.  After
that date, the interest remains perfected if appropriate action
under the amended article is taken by December 31, 1998.  If a
security interest in a security is perfected on August 28, 1997,
and the interest was perfected in a manner that would be
sufficient to perfect the interest under the amended article, no
additional action is required to continue perfection.