Connecticut House Bill HB06274

Connecticut 2011 Regular Session

• Introduced: 2/3/11
• Refer: 2/3/11
• Report Pass: 3/30/11
• Refer: 4/11/11
• Report Pass: 4/18/11
• Engrossed: 5/5/11
• Report Pass: 5/9/11
• Chaptered: 6/21/11
• Enrolled: 6/24/11
• Passed: 7/8/11

Caption

An Act Concerning Amendments To Article 9 Of The Uniform Commercial Code Concerning Secured Transactions.

Impact

If enacted, HB06274 would have significant implications for commercial transactions within the state. It aims to align Connecticut's UCC provisions with national standards, which proponents argue will facilitate commerce by reducing confusion regarding security interests across jurisdictions. By allowing security interests to remain perfected under specific conditions, the bill enhances the predictability and security for lenders and businesses engaged in secured transactions, thus potentially fostering a more stable economic environment.

Summary

House Bill 06274, titled 'An Act Concerning Amendments To Article 9 Of The Uniform Commercial Code Concerning Secured Transactions', proposes changes to existing legislation governing secured transactions under the Uniform Commercial Code (UCC). The focal point of the bill is to enhance clarity and efficiency in the handling of secured transactions, particularly concerning the perfection of security interests and the rights of lien creditors. Through these amendments, the bill seeks to establish a clearer legal framework for parties involved in financing agreements and to streamline processes related to the attachment and perfection of security interests.

Sentiment

The sentiment around HB06274 appears largely supportive among business and legal entities that operate under the UCC framework. Stakeholders expressed a positive outlook, seeing the amendments as beneficial for expanding financial opportunities and promoting economic transparency. However, there may also be concerns among small businesses and less sophisticated borrowers who might find the complexities of secured transactions overwhelming or feel that their rights may be compromised under new legal interpretations.

Contention

Notable points of contention surrounding the bill include the balance of power between secured creditors and debtors, particularly how these changes may affect the ability of less powerful parties to navigate financing agreements. Critics could argue that while the intent is to streamline processes, certain provisions might inadvertently favor lenders over borrowers, leading to potential inequities in case of default or bankruptcy. The bill is expected to ignite discussions about the appropriate protections for all parties involved in secured lending.