This Article takes effect on July 1, 2001.
(1) Except as otherwise provided in this part, this Article applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before this Article takes effect.
(2) Except as otherwise provided in subsection (c) and sections 9-1703 to 9-1709:
(a) Transactions and liens that were not governed by former Article 9, were validly entered into or created before this Article takes effect and would be subject to this Article if they had been entered into or created after this Article takes effect and the rights, duties and interests flowing from those transactions and liens remain valid after this Article takes effect; and
(b) The transactions and liens may be terminated, completed, consummated and enforced as required or permitted by this Article or by the law that otherwise would apply if this Article had not taken effect.
(3) This Article does not affect an action, case or proceeding commenced before this Article takes effect.
§9-1703. Security interest perfected before effective date
(1) A security interest that is enforceable immediately before this Article takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this Article if, when this Article takes effect, the applicable requirements for enforceability and perfection under this Article are satisfied without further action.
(2) Except as otherwise provided in section 9-1705, if, immediately before this Article takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable require-ments for enforceability or perfection under this Article are not satisfied when this Article takes effect, the security interest:
(a) Is a perfected security interest for one year after this Article takes effect;
(b) Remains enforceable thereafter only if the security interest becomes enforceable under section 9-1203 before the year expires; and
(c) Remains perfected thereafter only if the applicable requirements for perfection under this Article are satisfied before the year expires.
§9-1704. Security interest unperfected before effective date
A security interest that is enforceable immediately before this Article takes effect but which would be subordinate to the rights of a person that becomes a lien creditor at that time:
(1) Remains an enforceable security interest for one year after this Article takes effect;
(2) Remains enforceable thereafter if the security interest becomes enforceable under section 9-1203 when this Article takes effect or within one year thereafter; and
(3) Becomes perfected:
(a) Without further action, when this Article takes effect if the applicable requirements for perfection under this Article are satisfied before or at that time; or
(b) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.
§9-1705. Effectiveness of action taken before effective date
(1) If action, other than the filing of a financing statement, is taken before this Article takes effect and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before this Article takes effect, the action is effective to perfect a security interest that attaches under this Article within one year after this Article takes effect. An attached security interest becomes unperfected one year after this Article takes effect unless the security interest becomes a perfected security interest under this Article before the expiration of that period.
(2) The filing of a financing statement before this Article takes effect is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this Article.
(3) This Article does not render ineffective an effective financing statement that, before this Article takes effect, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in former section 9-103. However, except as otherwise provided in subsections (4) and (5) and section 9-1706, the financing statement ceases to be effective at the earlier of:
(a) The time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or
(b) June 30, 2006.
(4) The filing of a continuation statement after this Article takes effect does not continue the effectiveness of the financing statement filed before this Article takes effect. However, upon the timely filing of a continuation statement after this Article takes effect and in accordance with the law of the jurisdiction governing perfection as provided in part 3, the effectiveness of a financing statement filed in the same office in that jurisdiction before this Article takes effect continues for the period provided by the law of that jurisdiction.
(5) Subsection (3), paragraph (b) applies to a financing statement that, before this Article takes effect, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in former section 9-103 only to the extent that Part 3 provides that the law of a jurisdiction other than jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
(6) A financing statement that includes a financing statement filed before this Article takes effect and a continuation statement filed after this Article takes effect is effective only to the extent that it satisfies the requirements of part 5 for an initial financing statement.
§9-1706. When initial financing statement suffices to continue effectiveness of financing statement
(1) The filing of an initial financing statement in the office specified in section 9-1501 continues the effectiveness of a financing statement filed before this Article takes effect if:
(a) The filing of an initial financing statement in that office would be effective to perfect a security interest under this Article;
(b) The pre-effective-date financing statement was filed in an office in another state or another office in this State; and
(c) The initial financing statement satisfies subsection (3).
(2) The filing of an initial financing statement under subsection (1) continues the effectiveness of the pre-effective-date financing statement:
(a) If the initial financing statement is filed before this Article takes effect, for the period provided in former section 9-403 with respect to a financing statement; and
(b) If the initial financing statement is filed after this Article takes effect, for the period provided in section 9-1515 with respect to an initial financing statement.
(3) To be effective for purposes of subsection (1), an initial financing statement must:
(a) Satisfy the requirements of Part 5 for an initial financing statement;
(b) Identify the pre-effective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
(c) Indicate that the pre-effective-date financing statement remains effective.
§9-1707. Amendment of preeffective-date financing statement
(1) In this section, "preeffective-date financing statement" means a financing statement filed before this Article takes effect.
(2) After this Article takes effect, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in Part 3. However, the effectiveness of a preeffective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
(3) Except as otherwise provided in subsection (4), if the law of this State governs perfection of a security interest, the information in a preeffective-date financing statement may be amended after this Article takes effect only if:
(a) The preeffective-date financing statement and an amendment are filed in the office specified in section 9-1501;
(b) An amendment is filed in the office specified in section 9-1501 concurrently with or after the filing in that office of an initial financing statement that satisfies section 9-1706, subsection (3); or
(c) An initial financing statement that provides the information as amended and satisfies section 9-1706, subsection (3) is filed in the office specified in section 9-1501.
(4) If the law of this State governs perfection of a security interest, the effectiveness of a preeffective-date financing statement may be continued only under section 9-1705, subsections (4) and (6) or section 9-1706.
(5) Whether or not the law of this State governs perfection of a security interest, the effectiveness of a preeffective-date financing statement filed in this State may be terminated after this Article takes effect by filing a termination statement in the office in which the preeffective-date financing statement is filed, unless an initial financing statement that satisfies section 9-1706, subsection (3) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in Part 3 as the office in which to file a financing statement.
§9-1708. Persons entitled to file initial financing statement or continuation statement
A person may file an initial financing statement or a continuation statement under this part if:
(1) The secured party of record authorizes the filing; and
(2) The filing is necessary under this part:
(a) To continue the effectiveness of a financing statement filed before this Article takes effect; or
(b) To perfect or continue the perfection of a security interest.
(1) This Article determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before this Article takes effect, former Article 9 determines priority.
(2) For purposes of section 9-1322, subsection (1), the priority of a security interest that becomes enforceable under section 9-1203 of this Article dates from the time this Article takes effect if the security interest is perfected under this Article by the filing of a financing statement before this Article takes effect that would not have been effective to perfect the security interest under former Article 9. This subsection does not apply to conflicting security interests, each of which is perfected by the filing of such a financing statement.
Sec. A-3. Legislative intent. This Act is the Maine enactment of the Uniform Commercial Code, Article 9 as revised by the National Conference of Commissioners on Uniform State Laws. The text of the uniform act has been changed to conform to Maine statutory conventions and the article is enacted as Article 9-A. Unless otherwise noted in a Maine comment, the changes are technical in nature and it is the intent of the Legislature that this Act be interpreted as substantively the same as the revised Article 9 of the uniform act.
Sec. A-4. Effective date. This Part takes effect July 1, 2001.
PART B
Sec. B-1. 11 MRSA §1-105, sub-§(2), as amended by PL 1997, c. 429, Pt. C, §2, is further amended to read:
(2) When one of the following provisions of this Title specifies the applicable law, that provision governs a contrary agreement only to the extent permitted by the law (including the conflict of laws rules) so specified:
Rights of creditors against sold goods. Section 2-402.
Applicability of the Article on Leases. Sections 2-1105 and 2-1106.
Applicability of the Article on Bank Deposits and Collections. Section 4-102.
Governing law in the Article on Funds Transfers. Section 4-1507.
Letters of Credit. Section 5-1116.
Applicability of the Article on Investment Securities. Section 8-1110.
Perfection provisions of the Article on Secured Transactions. Section 9-103.
Law governing perfection, the effect of perfection or nonperfection and the priority of security interests and agricultural liens. Sections 9-1301 to 9-1307.
Sec. B-2. 11 MRSA §1-201, sub-§(9), as amended by PL 1979, c. 541, Pt. A, §100, is further amended to read:
(9) Buyer in ordinary course of business. "Buyer in ordinary course of business" means a person who that buys goods in good faith and, without knowledge that the sale to him is in violation of violates the ownership rights or security interest of a third party another person in the goods buys, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind but does not include a pawnbroker. All persons who sell minerals or the like, including oil and gas, at wellhead or minehead shall be deemed to be persons A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the seller's own usual or customary practices. A person that sells oil, gas or other minerals at the wellhead or minehead is a person in the business of selling goods of that kind. "Buying" A "buyer in ordinary course of business" may be buy for cash or, by exchange of other property or on secured or unsecured credit and includes receiving may acquire goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under Article 2 may be a "buyer in ordinary course of business." A person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt is not a "buyer in ordinary course of business."
Sec. B-3. 11 MRSA §1-201, sub-§(32) is amended to read:
(32) Purchase. "Purchase" includes taking by sale, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift or any other voluntary transaction creating an interest in property.
Sec. B-4. 11 MRSA §1-201, sub-§(37), as corrected by RR 1991, c. 2, §35, is amended by amending the first paragraph to read:
(37) Security interest. "Security interest" means an interest in personal property or fixtures that secures payment or performance of an obligation. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer (section 2-401) is limited in effect to a reservation of a "security interest." The term also includes any interest of a consignor and a buyer of accounts or, chattel paper, which a payment intangible or a promissory note in a transaction that is subject to Article 9 9-A. The special property interest of a buyer of goods on identification of such goods to a contract for sale under section 2-401 is not a "security interest", but a buyer may also acquire a "security interest" by complying with Article 9 9-A. Unless a lease or consignment is intended as security, reservation of title thereunder is not a "security interest" but a consignment is in any event subject to the provisions on consignment sales (section 2-326). Except as otherwise provided in section 2-505, the right of a seller or lessor of goods under Article 2 or 2-A to retain or acquire possession of the goods is not a "security interest," but a seller or lessor may also acquire a "security interest" by complying with Article 9-A. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer (section 2-401) is limited in effect to a reservation of a "security interest."
Sec. B-5. 11 MRSA §2-103, sub-§(3) is amended to read:
(3) The following definitions in other Articles apply to this Article:
"Check." "Consignee." "Consignor." "Consumer goods." |
Section 3-104. |
Sec. B-6. 11 MRSA §2-210, sub-§(2) is amended to read:
(2) Unless Except as otherwise provided in section 9-1406, unless otherwise agreed, all rights of either seller or buyer can be assigned except where the assignment would materially change the duty of the other party, or increase materially the burden or risk imposed on him the buyer or seller by his the contract, or impair materially his the chance of obtaining return performance. A right to damages for breach of the whole contract or a right arising out of the assignor's due performance of his the assignor's entire obligation can be assigned despite agreement otherwise.
Sec. B-7. 11 MRSA §2-210, sub-§(2-A) is enacted to read:
(2-A) The creation, attachment, perfection or enforcement of a security interest in the seller's interest under a contract is not a transfer that materially changes the duty of or increases materially the burden or risk imposed on the buyer or impairs materially the buyer's chance of obtaining return performance within the purview of subsection (2) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the seller. Even in that event, the creation, attachment, perfection and enforcement of the security interest remain effective, but:
(i) The seller is liable to the buyer for damages caused by the delegation to the extent that the damages could not reasonably be prevented by the buyer; and
(ii) A court having jurisdiction may grant other appropriate relief, including cancellation of the contract for sale or an injunction against enforcement of the security interest or consummation of the enforcement.
Sec. B-8. 11 MRSA §2-326 is amended to read:
§2-326. Sale on approval and sale or return; rights of creditors
(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:
(a) A "sale on approval," if the goods are delivered primarily for use; and
(b) A "sale or return," if the goods are delivered primarily for resale.
(2) Except as provided in subsection (3), goods Goods held on approval are not subject to the claims of the buyer's creditors until acceptance; goods held on sale or return are subject to such claims while in the buyer's possession.
(3) Where goods are delivered to a person for sale and such person maintains a place of business at which he deals in goods of the kind involved, under a name other than the name of the person making delivery, then with respect to claims of creditors of the person conducting the business the goods are deemed to be on sale or return. The provisions of this subsection are applicable even though an agreement purports to reserve title to the person making delivery until payment or resale or uses such words as "on consignment" or "on memorandum." However, this subsection is not applicable if the person making delivery
(a) Complies with an applicable law providing for a consignor's interest or the like to be evidenced by a sign; or
(b) Establishes that the person conducting the business is generally known by his creditors to be substantially engaged in selling the goods of others; or
(c) Complies with the filing provisions of the Article on secured transactions (Article 9).
(4) Any "or return" term of a contract for sale is to be treated as a separate contract for sale within the statute of frauds section of this Article (section 2-201) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence (section 2-202).
Sec. B-9. 11 MRSA §2-502 is repealed and the following enacted in its place:
§2-502. Buyer's right to goods on seller's repudiation, failure to deliver or insolvency
(1) Subject to subsections (2) and (3) and even though the goods have not been shipped, a buyer who has paid a part or all of the price of goods in which the buyer has a special property under the provisions of section 2-501 may, on making and keeping good a tender of any unpaid portion of the price of the goods, recover the goods from the seller if:
(a) In the case of goods bought for personal, family or household purposes, the seller repudiates or fails to deliver as required by the contract; or
(b) In all cases, the seller becomes insolvent within 10 days after receipt of the first installment on the price of the goods.
(2) The buyer's right to recover the goods under subsection (1), paragraph (a) vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.
(3) If the identification creating the buyer's special property has been made by the buyer, the buyer acquires the right to recover the goods only if they conform to the contract for sale.
Sec. B-10. 11 MRSA §2-716, sub-§(3) is amended to read:
(3) The buyer has a right of replevin for goods identified to the contract if after reasonable effort he the buyer is unable to effect cover for such goods or the circumstances reasonably indicate that such effort will be unavailing, or if the goods have been shipped under reservation and satisfaction of the security interest in them has been made or tendered. In the case of goods bought for personal, family or household purposes, the buyer's right of replevin vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.
Sec. B-11. 11 MRSA §2-1103, sub-§(3), as enacted by PL 1991, c. 805, §4, is amended to read:
(3) The following definitions in other Articles apply to this Article:
"Account." |
Section |
"Between merchants." |
Section 2-104, subsection (3) . |
"Buyer." |
Section 2-103, subsection (1), paragraph (a). |
"Chattel paper." |
Section |
"Consumer goods." |
Section |
"Document." |
Section |
"Entrusting." |
Section 2-403, subsection (3). |
"General |
Section |
"Good faith." |
Section 2-103, subsection (1), paragraph (b). |
"Instrument." |
Section |
"Merchant." |
Section 2-104, subsection (1). |
"Mortgage." |
Section |
"Pursuant to commitment." |
Section |
"Receipt." |
Section 2-103, subsection (1), paragraph (c). |
"Sale." |
Section 2-106, subsection (1). |
"Sale on approval." |
Section 2-326. |
"Sale or return." |
Section 2-326. |
"Seller." |
Section 2-103, subsection (1), paragraph (d). |
Sec. B-12. 11 MRSA §2-1303, sub-§§(1) and (2), as enacted by PL 1991, c. 805, §4, are amended to read:
(1) As used in this section, "creation of a security interest" includes the sale of a lease contract that is subject to Article 9 9-A, section 9-102 9-1109, subsection (1), paragraph (b) (c).
(2) Except as provided in subsections subsection (3) and (4) section 9-1407, a provision in a lease agreement that: prohibits the voluntary or involuntary transfer, including a transfer by sale, sublease, creation or enforcement of a security interest, or attachment, levy or other judicial process, of an interest of a party under the lease contract or of the lessor's residual interest in the goods; or makes such a transfer an event of default, gives rise to the rights and remedies provided in subsection (5), but a transfer that is prohibited or is an event of default under the lease agreement is otherwise effective.
Sec. B-13. 11 MRSA §2-1303, sub-§(3), as enacted by PL 1991, c. 805, §4, is repealed.
Sec. B-14. 11 MRSA §2-1303, sub-§(5), as enacted by PL 1991, c. 805, §4, is amended to read:
(5) Subject to subsections subsection (3) and (4) section 9-1407:
(a) If a transfer is made which is made an event of default under a lease agreement, the party to the lease contract not making the transfer, unless that party waives the default or otherwise agrees, has the rights and remedies described in section 2-1501, subsection (2); and
(b) If paragraph (a) is not applicable and if a transfer is made that is prohibited under a lease agreement or materially impairs the prospect of obtaining return performance by, materially changes the duty of, or materially increases the burden or risk imposed on, the other party to the lease contract, unless the party not making the transfer agrees at any time to the transfer in the lease contract or otherwise, then, except as limited by contract:
(i) The transferor is liable to the party not making the transfer for damages caused by the transfer to the extent that the damages could not reasonably be prevented by the party not making the transfer; and
(ii) A court having jurisdiction may grant other appropriate relief, including cancellation of the lease contract or an injunction against the transfer.
Sec. B-15. 11 MRSA §2-1307, as enacted by PL 1991, c. 805, §4, is repealed and the following enacted in its place:
§2-1307. Priority of liens arising by attachment or levy on, security interests in and other claims to goods
(1) Except as otherwise provided in section 2-1306, a creditor of a lessee takes subject to the lease contract.
(2) Except as otherwise provided in subsection (3) and in sections 2-1306 and 2-1308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.
(5) Except as otherwise provided in section 9-1317, 9-1321 and 9-1323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.
Sec. B-16. 11 MRSA §2-1309, sub-§(1), ¶(b), as enacted by PL 1991, c. 805, §4, is amended to read:
(b) A "fixture filing" is the filing, in the office where a record of a mortgage on the real estate would be filed or recorded, of a financing statement covering goods that are or are to become fixtures and conforming to the requirements of section 9-402 9-1502, subsection (5) subsections (1) and (2);
Sec. B-17. 11 MRSA §4-208, sub-§(3), ¶(a) is amended to read:
(a) No security agreement is necessary to make the security interest enforceable (section 9-203 9-1203, subsection (1) (2), paragraph (b) (c), subparagraph (i)); and
Sec. B-18. 11 MRSA §5-1118 is enacted to read:
§5-1118. Security interest of issuer or nominated person
(1) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
(2) So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (1), the security interest continues and is subject to Article 9-A, but:
(a) A security agreement is not necessary to make the security interest enforceable under section 9-1203, subsection (2), paragraph (c);
(b) If the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(c) If the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.
Sec. B-19. 11 MRSA §7-503, sub-§(1), ¶(a) is amended to read:
(a) Delivered or entrusted them or any document of title covering them to the bailor or his the bailor's nominee with actual or apparent authority to ship, store or sell or with power to obtain delivery under this Article (section 7-403) or with power of disposition under this Title (sections 2-403 and 9-307 9-1320) or other statute or rule of law; nor
Sec. B-20. 11 MRSA §8-1103, sub-§(6), as enacted by PL 1997, c. 429, Pt. B, §2, is amended to read:
(6) A commodity contract, as defined in section 9-115 9-1102, subsection (15), is not a security or a financial asset.
Sec. B-21. 11 MRSA §8-1106, sub-§§(4) and (6), as enacted by PL 1997, c. 429, Pt. B, §2, are amended to read:
(4) A purchaser has control of a security entitlement if:
(a) The purchaser becomes the entitlement holder; or
(b) The securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder.; or
(c) Another person has control of the security entitlement on behalf of the purchaser or, having previously acquired control of the security entitlement, acknowledges that it has control on behalf of the purchaser.
(6) A purchaser who has satisfied the requirements of subsection (3), paragraph (b) or subsection (4), paragraph (b) has control, even if the registered owner in the case of subsection (3), paragraph (b) or the entitlement holder in the case of subsection (4), paragraph (b) retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or securities intermediary or otherwise to deal with the uncertificated security or security entitlement.
Sec. B-22. 11 MRSA §8-1110, sub-§(5), as enacted by PL 1997, c. 429, Pt. B, §2, is amended to read:
(5) The following rules determine a "securities intermediary's jurisdiction" for purposes of this section.
(a) If an agreement between the securities intermediary and its entitlement holder specifies that it is governed by the law of a particular jurisdiction governing the securities account expressly provides that a particular jurisdiction is the securities intermediary's jurisdiction for purposes of this part, this Article or this Title, that jurisdiction is the securities intermediary's jurisdiction.
(a-1) If paragraph (a) does not apply and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.
(b) If neither paragraph (a) nor (a-1) applies and an agreement between the securities intermediary and its entitlement holder does not specify the governing law as provided in paragraph (a) but governing the securities account expressly specifies provides that the securities account is maintained at an office in a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.
(c) If an agreement between the securities intermediary and its entitlement holder does not specify a jurisdiction as provided in paragraph (a) or (b) none of the preceding paragraphs apply, the securities intermediary's jurisdiction is the jurisdiction in which is located the office identified in an account statement as the office serving the entitlement holder's account is located.
(d) If an agreement between the securities intermediary and its entitlement holder does not specify a jurisdiction as provided in paragraph (a) or (b) and an account statement does not identify an office serving the entitlement holder's account as provided in paragraph (c) none of the preceding paragraphs apply, the securities intermediary's jurisdiction is the jurisdiction in which is located the chief executive office of the securities intermediary is located.
Sec. B-23. 11 MRSA §8-1301, sub-§(1), ¶(c), as enacted by PL 1997, c. 429, Pt. B, §2, is amended to read:
(c) A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and has been specially indorsed to the purchaser by an effective indorsement is:
(i) Registered in the name of the purchaser;
(ii) Payable to the order of the purchaser; or
(iii) Specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.
Sec. B-24. 11 MRSA §8-1302, sub-§(1), as enacted by PL 1997, c. 429, Pt. B, §2, is amended to read:
(1) Except as otherwise provided in subsections (2) and (3), upon delivery a purchaser of a certificated or uncertificated security to a purchaser, the purchaser acquires all rights in the security that the transferor had or had power to transfer.
Sec. B-25. 11 MRSA §8-1510, sub-§§(1) and (3), as enacted by PL 1997, c. 429, Pt. B, §2, are amended to read:
(1) An In a case not covered by the priority rules in Article 9-A or the rules stated in subsection (3), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against a person who purchases a security entitlement or an interest in a security entitlement from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim and obtains control.
(3) In a case not covered by the priority rules in Article 9 9-A, a purchaser for value of a security entitlement or an interest in a security entitlement who obtains control has priority over a purchaser of a security entitlement or an interest in a security entitlement who does not obtain control. Purchasers Except as otherwise provided in subsection (4), purchasers who have control rank equally, except that a securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary. according to priority in time of:
(a) The purchaser's becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under section 8-1106, subsection (4), paragraph (a);
(b) The securities intermediary's agreement to comply with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under section 8-1106, subsection (4), paragraph (b); or
(c) If the purchaser obtained control through another person under section 8-1106, subsection (4), paragraph (c), the time on which priority would be based under this subsection if the other person were the secured party.
(4) A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.
Sec. B-26. 29-A MRSA §702, sub-§§3 and 4, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, are repealed and the following enacted in their place:
3. Date. A security interest is perfected as of the date of delivery under subsection 2.
4. Vehicle brought into State. If a vehicle is subject to a security interest when brought into this State, the perfection, effect of perfection and priority of the security interest is determined in accordance with Title 11, Article 9-A, Part 3.
Sec. B-27. 29-A MRSA §702, sub-§5, as renumbered by PL 1993, c. 2, §18, is repealed and the following enacted in its place:
5. Vehicles located outside State and registered in State. If a vehicle is located outside this State and is not the subject of a valid certificate of title issued by another jurisdiction, upon registration of the vehicle in this State, the provisions of this chapter on perfection of a security interest apply. Notwithstanding Title 11, Article 9-A, Part 3, perfection under this subchapter remains valid until the certificate issued by this State is surrendered for retitling in another jurisdiction.
Sec. B-28. Effective date. This Part takes effect July 1, 2001.
PART C
Sec. C-1. Rules. Notwithstanding that Parts A, B and C of this Act do not take effect until July 1, 2001, the Secretary of State may adopt rules in accordance with the Maine Revised Statutes, Title 5, chapter 375 that are necessary to carry out this Act in preparation for the effective date of July 1, 2001 of Article 9-A. Rules adopted pursuant to this section are routine technical rules for the purposes of Title 5, chapter 375, subchapter II-A.
PART D
Sec. D-1. 7 MRSA §1022, sub-§1, ¶G, as amended by PL 1997, c. 606, §12, is further amended to read:
G. Name and address of any person designated as a secured party on a financing statement naming the seller as debtor filed in accordance with Title 11, section 9-401 9-1501, covering the potatoes or rotation crops, if any;
Sec. D-2. 9-A MRSA §2-201, sub-§9-A, as enacted by PL 1993, c. 188, §2, is amended to read:
9-A. Notwithstanding any other provision of law, the finance charge on a consumer credit sale of a motor vehicle, as defined in this section, that is sold on or after January 1, 1994 may not exceed 18% per year on the unpaid balance of the amount financed. For the purposes of this section, "motor vehicle" means any self-propelled vehicle not operated exclusively on tracks, except agricultural machinery and any other devices that do not constitute consumer goods, as defined in Title 11, section 9-109, subsection 1 9-1102, subsection (23).
Sec. D-3. 9-A MRSA §3-206, sub-§1, ¶C, as enacted by PL 1981, c. 264, §1, is amended to read:
C. Notices required under Title 11, Article 9 9-A; and
Sec. D-4. 10 MRSA §1045-A, sub-§2, as enacted by PL 1985, c. 344, §73, is amended to read:
2. Mortgages. To further secure the payment of the revenue obligation securities, the trust agreement or other document may mortgage or assign the mortgage of the project, or any part, and create a lien upon or security interest in any or all of the project. In the event of a default with respect to the revenue obligation securities, the trustee, mortgagee or other person may be authorized by the trust agreement or other document containing a mortgage or assignment of a mortgage to take possession of, hold, manage and operate all or any part of the mortgaged property and, with or without taking possession, to sell or, from time to time, to lease the property in accordance with law. Any security interest granted by the authority under this chapter may be created and perfected in accordance with the Uniform Commercial Code, Title 11, Article 9, notwithstanding Title 11, section 9-104, subsection 5 9-A.
Sec. D-5. 10 MRSA §1065, sub-§2, as amended by PL 1985, c. 344, §88, is further amended to read:
2. Mortgages. To further secure the payment of the revenue obligation securities, the trust agreement or other financial document may mortgage the project or any part and create a lien upon any or all of the real or personal property of the project. In the event of a default with respect to the revenue obligation securities, the trustee or mortgagee may be authorized by the trust agreement or financial document containing a mortgage or assignment of a mortgage to take possession of, hold, manage and operate all or any part of the mortgaged property and, with or without taking possession, to sell or, from time to time, to lease the property in accordance with law. Any security interest granted by a municipality under this chapter may be created and perfected in accordance with the provisions of the Uniform Commercial Code, Article 9, notwithstanding the provisions of Title 11, section 9-104, subsection 5 9-A.
Sec. D-6. 10 MRSA §3322, sub-§4, as enacted by PL 1975, c. 725, is amended to read:
4. Inventory. "Inventory" shall have has the same meaning as defined in Title II, section 9-109, subsection (4) 11, section 9-1102, subsection (48).
Sec. D-7. 10 MRSA §3802, sub-§2, as enacted by PL 1999, c. 88, §1, is amended to read:
2. Fees. The fee for filing a lien under this section is the same as under Title 11, section 9-403, subsection (5) 9-1525.
Sec. D-8. 10 MRSA §4001, first ¶ is amended to read:
Whoever has a lien on personal property in his that person's possession which is not covered by Title 11, article 9 Article 9-A may enforce it by a sale thereof in the manner provided for in the contract creating such lien, if in writing, or as hereinafter provided for in this chapter.
Sec. D-9. 13 MRSA §1746, sub-§1, as enacted by PL 1993, c. 300, §1, is amended to read:
1. Creation of security interest. Security interests in shares of cooperative affordable housing corporations may be created, perfected and enforced in the same manner as security interests in certificated securities under Title 11, articles 8 and 9 Articles 8-A and 9-A. A lender may perfect such a security interest by possession of shares or by any other method under which security interests in certificated securities may be perfected pursuant to Title 11, article 8 Article 8-A.
Sec. D-10. 14 MRSA §3131, sub-§§3 and 5, as enacted by PL 1987, c. 184, §14, are amended to read:
3. Notice of turnover order and sale. The judgment creditor shall give notice of any turnover order or sale to any person who has a security interest, mortgage, lien, encumbrance or other interest in the property when the interest is recorded, possessory or of which the judgment creditor has actual knowledge. He The judgment creditor shall provide notice of sale to the judgment debtor. In the case of a turnover order, the notice shall must include a copy of the order, the name and address of the judgment creditor and the name and address of the attorney, if any, representing the judgment creditor in the disclosure proceeding. Notice of a turnover order shall must be provided within 30 days after the entry of the turnover order. In the case of a sale, the notice shall must be of the type which a secured creditor is required to provide to a debtor in a sale of secured property subject to Title 11, section 9-504, subsection (3) 9-1611, and shall must be provided at the time required under that section. If the judgment creditor fails to provide the required notice of sale or turnover order to others, the creditor shall be is liable to the 3rd parties for any loss caused by the failure.
5. Method and effect of sale. Sale of the property may be by public or private sale and by any method which is commercially reasonable. The judgment creditor may buy at any sale at which a secured party could buy if the sale occurred pursuant to Title 11, section 9-504, subsection (3) 9-1610. The sale shall have has the effect accorded dispositions under Title 11, section 9-504, subsection (4) 9-1617, whether the property is real or personal.
Sec. D-11. 14 MRSA §3131, sub-§9, as amended by PL 1995, c. 65, Pt. A, §38 and affected by §153 and Pt. C, §15, is further amended to read:
9. Lien. An order entered pursuant to this section shall constitute constitutes a lien against the property which is the subject of the order and against the proceeds of any disposition of the property by the judgment debtor which occurs at any time after entry of the order. The lien shall extend extends to proceeds of any disposition of the property, real or personal, subject to the lien of the judgment creditor to the extent that a secured party would have an interest in the proceeds under Title 11, section 9-306 9-1315, subsection (1). The lien shall must be for the full amount of the unpaid judgment, interest and costs, and shall become becomes perfected as to 3rd parties on the earlier of:
A. The time the judgment creditor or purchaser takes possession of the property;
B. If the property is real estate, the time when an attested copy of the turnover or sale order is filed with the registry of deeds where a mortgage would be filed to be duly perfected;
C. If the property is personalty against which of a type a security interest in which may be perfected by filing pursuant to Title 11, the time when an attested copy of the turnover or sale order is filed with the filing officer where a filing would be required under Title 11, section 9-401 in the office of the Secretary of State;
D. If the property is a motor vehicle for which a certificate of title is required, the time when an attested copy of the turnover or sale order is delivered to the office of the Secretary of State where notice would be delivered pursuant to Title 29-A, section 665, subsection 1; or
E. If the judgment creditor or purchaser takes possession of the property, or if an order is recorded, filed or delivered pursuant to this subsection during the pendency of any properly perfected prejudgment or post-judgment attachment obtained in the underlying action, or any judgment lien created pursuant to section 4651, the time when the attachment or lien was duly perfected against the property.
Sec. D-12. 14 MRSA §3132, as repealed and replaced by PL 1987, c. 184, §15, is amended to read:
When it is shown at a hearing under this chapter that the judgment debtor owns or otherwise has an interest in personal property in which a security interest may be perfected only by possession as set forth in Title 11, article 8 or 9 Article 8-A or 9-A, upon request of the judgment creditor, the court shall order a lien on the judgment debtor's interest in so much of such property as is not exempt from attachment and execution pursuant to sections 4421 to 4426, and as will satisfy the unpaid judgment plus interest and costs. Any lien ordered under this section shall be is perfected as to 3rd parties as of the time the judgment creditor takes possession of the property or the document evidencing the property.
Any lien ordered under this section shall extend extends to the proceeds of any disposition of any property subject to the lien of the judgment creditor which occurs at any time after entry of the lien order to the same extent that a secured party would have an interest in such proceeds pursuant to Title 11, section 9-306 9-1315, subsection (1). The court is given equitable power to make all appropriate orders, including, but not limited to, turnover orders, to assist the judgment creditor in perfecting a lien under this section and to effectuate or compel obedience to any orders issued pursuant to this section.
Sec. D-13. 14 MRSA §3579, sub-§5, ¶B, as enacted by PL 1985, c. 641, §3, is amended to read:
B. Enforcement of a security interest in compliance with the Uniform Commercial Code, Title 11, Article 9 9-A.
Sec. D-14. 14 MRSA §4151, 2nd ¶, as enacted by PL 1985, c. 187, §1, is amended to read:
Following the entry of judgment in a civil action and prior to the issuance of a writ of execution upon the judgment, any interest in real or personal property, which is not exempt from attachment and execution, may be attached by the plaintiff by the filing in the registry of deeds for the county in which the property is located, with respect to real property, or in the proper place pursuant to office of the Secretary of State, with respect to property of a type a security interest in which may be perfected by a filing in such office under to Title 11, section 9-401, subsection (1) Article 9-A, of an attested copy of the court order awarding judgment. Fees for the recording of the order shall must be as otherwise provided for similar documents. Notwithstanding section 4454, the filing shall constitute constitutes perfection of the attachment. The party whose property has been so attached shall must be immediately notified by certified letter, mailed by the plaintiff to the party's last known address, which shall must inform the party that an attachment has been filed against the party's real or personal property and shall must specify the registry of deeds or office of the Secretary of State in which the attachment has been recorded.
Sec. D-15. 14 MRSA §4651-A, sub-§2, as enacted by PL 1987, c. 184, §23, is amended to read:
2. Lien on personal property. The filing of an execution duly issued by any court of this State or an attested copy thereof with in the proper place or places for perfecting a security interest in personal property pursuant to Title 11, section 9-401, subsections (1) and (5) office of the Secretary of State within one year after issuance of the execution shall create creates a lien in favor of each judgment creditor upon the right, title and interest of each judgment debtor in personal property which is not exempt from attachment and execution and which is of a type against which a security interest could be perfected by the filing pursuant to Title 11, section 9-401 of a financing statement with the office of the Secretary of State.
Sec. D-16. 14 MRSA §4154, first ¶, as amended by PL 1985, c. 187, §2, is further amended to read:
Any interest in real or personal property, which is not exempt from attachment and execution, may be attached by the plaintiff by the filing in the registry of deeds for the county in which the property is located, with respect to real property, or in the proper place pursuant to office of the Secretary of State, with respect to property of a type a security interest in which may be perfected by a filing in such office under Title 11, section 9-401, subsection 1 Article 9-A, of an attested copy of the court order approving the real or personal property attachment, provided that the order shall be is filed within 30 days after the order approving the attachment, or within such additional time as the court may allow upon a timely motion. Fees for the recording of the order shall must be as otherwise provided for similar documents. Notwithstanding section 4454, the filing shall constitute constitutes perfection of the attachment and service of a copy of the court's order shall must be made upon the defendant in accordance with the Maine Rules of Civil Procedure pertaining to service of writs of attachment.
Sec. D-17. 19-A MRSA §2357, sub-§2, as enacted by PL 1995, c. 694, Pt. B, §2 and affected by Pt. E, §2, is amended to read:
2. Filing. For real property, a lien is perfected when a notice of support lien is filed in the registry of deeds of the county or counties in which the real property is located. For personal property, including motor vehicles or other items for which a certificate of ownership is issued by the Secretary of State, the lien is perfected when a notice of support lien is delivered to the Secretary of State. The Secretary of State shall mark, hold and index the notice of support lien as if it were a financing statement within the meaning of Title 11, section 9-402 9-1102, subsection (39). The notice of support lien must state the name and address of the responsible parent, the amount of the child support debt accrued, the date of the decision or notice of debt by which the debt was assessed and the name and address of the authorized agent of the department who issued the notice.
Sec. D-18. 20-A MRSA §10956, last ¶, as amended by PL 1989, c. 502, Pt. A, §58, is further amended to read:
All expenses incurred in carrying out the trust agreement, financing document or resolution may be treated as a part of the cost of the operation of a project. All pledges of revenues under this chapter shall be are valid and binding from the time when the pledge is made. All such revenues so pledged and received by the university shall must immediately be subject to the lien of the pledges without any physical delivery of them or further action under the Uniform Commercial Code, Title 11, or otherwise. The lien of those pledges shall be is valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the university irrespective of whether the parties have notice of the liens, and the liens shall are automatically, without further action, be perfected and have the same status as a security interest perfected under the Uniform Commercial Code, Title 11, Article 9 9-A.
Sec. D-19. 30-A MRSA §5706, sub-§2, as amended by PL 1997, c. 429, Pt. C, §35, is further amended to read:
2. Repurchase agreements. In repurchase agreements with respect to obligations of the United States Government, as defined in section 5712, subsection 1, as long as the market value of the underlying obligation is equal to or greater than the amount of the municipality's investment and either the municipality's security entitlement with respect to the underlying obligation is created pursuant to the provisions of Title 11, article Article 8-A and other applicable law or the municipality's security interest is perfected pursuant to the provisions of Title 11, article 9 Article 9-A and other applicable law, except that, if the term of the repurchase agreement is not in excess of 96 hours, the municipality's security interest with respect to the underlying obligation need not be perfected as long as an executed Public Securities Association form of master repurchase agreement is on file with the counterparty prior to the date of the transaction;
Sec. D-20. 33 MRSA §203, as amended by PL 1993, c. 395, §1, is further amended to read:
Deeds and all other written instruments before recording in the registries of deeds, except those issued by a court of competent jurisdiction and duly attested by the proper officer thereof, and excepting plans and notices of foreclosure of mortgages and certain financing statements as provided in Title 11, section 9-401 9-1501, subsection (1), paragraph (a), and excepting notices of liens for internal revenue taxes and certificates discharging such liens and excepting notices of liens for taxes assessed pursuant to Title 36, Part 1 and Parts 3 to 8 and Title 26, chapter 13, and releases discharging such liens, must be acknowledged by the grantors, or by the persons executing any such written instruments, or by one of them, or by their attorney executing the same, or by the lessor in a lease or one of the lessors or lessor's attorney executing the same, before a notary public in the State, or before an attorney-at-law duly admitted and eligible to practice in the courts of the State, if within the State; or before any clerk of a court of record having a seal, notary public or commissioner appointed by the Governor of this State for the purpose, or a commissioner authorized in the State where the acknowledgment is taken, within the United States; or before a minister, vice-consul or consul of the United States or notary public in any foreign country.
Any person who is in the Armed Forces of the United States, and who executes a general or special power of attorney, deed, lease, contract or any instrument that is required to be recorded, may acknowledge the same as his that person's true act and deed before any lieutenant or officer of senior grade thereto in the Army, U. S. Marine Corps or Air Force or before any ensign or officer of senior grade thereto in the Navy or Coast Guard and the record of such acknowledgment by said officers shall must be received and have the same force and effect as acknowledgements acknowledgments under the other provisions of this section, and all such instruments heretofore executed are hereby validated as to acknowledgment and authenticity. Powers of attorney and other instruments requiring seals executed by such members of the armed forces may be accepted for recordation in registries of deeds and other offices of record in cases where no seal is affixed after the name of the person or persons executing the instrument with like force and effect as though seals were affixed thereto.
Any notary public who is a stockholder, director, officer or employee of a bank or other corporation may take the acknowledgment of any party to any written instrument executed to or by such corporation, provided such notary public is not a party to such instrument either individually or as a representative of such bank or other corporation.
This section shall may not be construed as invalidating any instrument duly executed in accordance with the statutes heretofore in effect or made valid by any such statute. All such instruments may be admitted to record which at the time of their execution or subsequent validation could be so recorded.
Notwithstanding any of the requirements in this section, an instrument with an acknowledgment conforming to the requirements of the Uniform Recognition of Acknowlegments Acknowledgments Act, Title 4, section 1011 et seq., shall must be accepted for recording purposes.
Sec. D-21. 33 MRSA §505, sub-§5, ¶A, as enacted by PL 1993, c. 229, §3, is amended to read:
A. The mortgagor or a successor in interest may file in the same recording office in which the original mortgage is filed and send to the mortgagee by registered mail, return receipt requested, a written notice limiting the amount of future advances, other than advances made pursuant to a commitment as defined in Title 11, section 9-105, subsection 1, paragraph K 9-1102, subsection (68), secured by that mortgage to not less than the amount actually advanced as of the end of the 3rd business day following the delivery of the notice.
Sec. D-22. 33 MRSA §551, last ¶, as amended by PL 1999, c. 230, §1 and affected by §2, is further amended to read:
All discharges of recorded mortgages, attachments or liens of any nature must be recorded by a written instrument, and, except for termination statements filed pursuant to Title 11, section 9-404 9-1513, acknowledged in same manner as other instruments presented for record and no such discharges may be permitted by entry in the margin of the instrument to be discharged.
Sec. D-23. 33 MRSA §1903, sub-§§3 and 4, as enacted by PL 1989, c. 502, Pt. A, §121, are amended to read:
3. Personal property liens. Notices of federal liens upon personal property, whether tangible or intangible, except property of a type in which a security interest is perfected under Title 11, section 9-401, subsection (1), paragraph (a) 9-1501, subsection (1), paragraph (a), for obligations payable to the United States and certificates and notices affecting the liens, shall must be filed with the Secretary of State.
4. Timber, mineral and other liens. Notices of federal liens upon personal property of a type in which a security interest is perfected under Title 11, section 9-401, subsection (1), paragraph (a) 9-1501, subsection (1), paragraph (a), for obligations payable to the United States and certificates and notices affecting the liens, shall must be filed in the registry of deeds in the county or counties where a mortgage on the real estate concerned would be filed or recorded.
Sec. D-24. 33 MRSA §1905, sub-§1, ¶A, as enacted by PL 1989, c. 502, Pt. A, §121, is amended to read:
A. The Secretary of State, the filing officer shall cause the notice to be marked, held and indexed in accordance with Title 11, section 9-403, subsection (4) 9-1519, as if the notice were a financing statement within the meaning of the Uniform Commercial Code, Title 11, except that if the property is of a type in which a security interest is perfected under Title 5, section 90-A, the Secretary of State shall cause the notice to be marked, held and indexed in accordance with the procedures established under Title 5, section 90-A, as if the notice were a financing statement within the meaning of that section; or
Sec. D-25. 35-A MRSA §4151, sub-§8, as enacted by PL 1987, c. 141, Pt. A, §6, is amended to read:
8. Investment securities. All bonds, notes and interest coupons appertaining to them issued by the agency have all the qualities and incidents, including negotiability, unless the agency expressly provides otherwise, of investment securities under the applicable provisions of Title 11, article 8 Article 8-A, but no provision of Title 11, article 9 Article 9-A, respecting the filing of a financing statement to perfect a security interest shall be is applicable to any pledge made or security interest created in connection with the issuance of the bonds, notes or coupons.
Sec. D-26. 36 MRSA §175-A, sub-§1, as amended by PL 1997, c. 526, §10, is further amended to read:
1. Filing. If any tax imposed by this Title or imposed by any other provision of law and authorized to be collected by the bureau is not paid when due and no further administrative or judicial review of the assessment is available pursuant to law, the assessor may file in the registry of deeds of any county, with respect to real property, or in the office in which a financing statement with respect to tangible personal property is properly filed with of the Secretary of State, with respect to property of a type a security interest in which may be perfected by a filing in such office under Title 11, section 9-401, subsection (1), paragraph (b) Article 9-A, a notice of lien specifying the amount of the tax, interest, penalty and costs due, the name and last known address of the person liable for the amount and, in the case of a tax imposed by this Title, the fact that the assessor has complied with all the provisions of this Title in the assessment of the tax. The lien arises at the time the assessment becomes final and constitutes a lien upon all property, whether real or personal, then owned or thereafter acquired by that person in the period before the expiration of the lien. The lien imposed by this section is not valid against any mortgagee, pledgee, purchaser, judgment creditor or holder of a properly recorded security interest until notice of the lien has been filed by the assessor, with respect to real property, in the registry of deeds of the county where such property is located and, with respect to personal property, in the office in which a financing statement for such personal property is normally filed. Notwithstanding this subsection, a tax lien upon personal property does not extend to those types of personal property not subject to perfection of a security interest by means of the filing under Title 11, sections 9-104, subsection (7); 9-104, subsection (12); 9-302, subsection (3); and 9-304 in the office of the Secretary of State. The lien is prior to any mortgage or security interest recorded, filed or otherwise perfected after the notice, other than a purchase money security interest perfected in accordance with Title 11, section 9-301, subsection (2) and Title 11, section 9-312, subsection (4) Article 9-A. In the case of any mortgage or security interest properly recorded or filed prior to the notice of lien that secures future advances by the mortgagee or secured party, the lien is junior to all advances made within 45 days after filing of the notice of lien, or made without knowledge of the lien or pursuant to a commitment entered into without knowledge of the lien. Subject to the limitations in this section, the lien provided in this section has the same force, effect and priority as a judgment lien and continues for 10 years from the date of recording unless sooner released or otherwise discharged. The lien may, within the 10-year period, or within 10 years from the date of the last extension of the lien in the manner provided in this subsection, be extended by filing for record in the appropriate office a copy of the notice and, from the time of filing, that lien must be extended for 10 years unless sooner released or otherwise discharged.
Sec. D-27. 36 MRSA §176-A, sub-§6, ¶¶A and B, as enacted by PL 1989, c. 880, Pt. E, §3, are amended to read:
A. As soon as practicable after seizure of property, the assessor shall give notice in writing to the owner of the property, or, in the case of personal property, the possessor of the property, or leave notice at the owner's or possessor's usual place of abode or business, if any, within the State. If the owner or possessor cannot be readily located, or has no dwelling or place of business within the State, the notice may be mailed to that person's last known address. In the case of real property, the notice must be filed in the registry of deeds in the county where the property is located. The notice must specify the sum demanded and contain:
(1) In the case of personal property, an account of the property seized; and
(2) In the case of real property, a description with reasonable certainty of the property seized.
In the case of levy on a motor vehicle that is the subject of a Certificate of Title issued by the Secretary of State, a copy of the notice must be filed with the Secretary of State, who shall note the levy in the records of ownership of the motor vehicle in question. In the case of levy on that type of personal property, a security interest in which may be perfected by filing in the office of the Secretary of State pursuant to Title 11, section 9-401, a copy of the notice must be filed in the office of the Secretary of State, who shall file the notice of levy as a financing statement.
B. The assessor, as soon as practicable after the seizure of the property, shall give notice to the owner or possessor in the manner prescribed in paragraph A and cause a notification to be published in a newspaper of general circulation within the county where the seizure is made, or, if there is no such newspaper, post the notice at the city or town hall nearest the place where the seizure is made and in not less than 2 other public places. In the case of real property, the notice must be served on all persons holding an interest of record, including, without limitation, recorded leases and security interest of all types, in the property as reflected at the time the notice of levy is recorded by the indices of the registry of deeds in the county where the property is located. In the case of personal property that is a motor vehicle subject to a Certificate of Title issued by the Secretary of State, notice must be served on all persons holding a security interest of record in the motor vehicle as set forth in the records of the Secretary of State. In the case of the type of personal property that may be the subject of a security interest perfected by filing in the office of the Secretary of State pursuant to Title 11, section 9-401, notice must be served upon all secured parties claiming an interest in the property seized as reflected at the time the notice of levy is recorded in the records maintained by the Secretary of State pursuant to Title 11. The notice must specify the property to be sold, subject to the liabilities of prior encumbrances, if any, and the time, place, manner and conditions of the sale. If levy is made without regard to the 10-day period provided in subsection 2, public notice of sale of the property seized may not be made within the 10-day period unless subsection 7 applies. It is a Class E crime to intentionally remove or deface the posted notice of sale prior to the scheduled sale date, unless the property has been redeemed or the sale is for some other reason canceled. The assessor or any law enforcement officer may enter onto the land if necessary to carry out the purposes of this section.
Sec. D-28. 36 MRSA §612, as amended by PL 1985, c. 218, is further amended to read:
§612. Tax lien on personal property
1. Lien. There shall must be a lien to secure the payment of all taxes legally assessed on personal property as defined in section 601 and, provided in the inventory and valuation upon which the assessment is made, there shall must be a description of the personal property taxed which meets the requirements of Title 11, section 9-402 9-1504. Except as otherwise provided in this section, the lien, when perfected, shall take takes precedence over all other claims on the personal property and shall continue continues in force until the taxes are paid or until the lien is otherwise terminated by law.
2. Definitions. As used in this section, unless the context otherwise indicates, the terms used in this section have the same meanings as in Title 11.
3. Filing required to perfect lien. The lien established by subsection 1 shall attach attaches on the date of assessment and shall become becomes perfected at the time when notice of the lien, signed by the tax collector, is filed, pursuant to the filing provisions of Title 11, section 9-403 9-1516, except that the signature of the taxpayer against whose property the lien is claimed, shall is not be required on the notice of lien. If the lien is not perfected within 2 years from the date of assessment, it shall expire expires.
4. Notice of lien. Each notice of lien, which may be in the form of a financing statement, shall may contain information which will identify:
A. The owner of the property upon which the lien is claimed, if the owner is not the taxpayer;
B. The residence or business address of the owner;
C. The taxpayer and his the taxpayer's residence or business address;
D. The property claimed to be subject to the lien;
E. The amount of tax, accrued interest and costs claimed due the municipality by the lien;
F. The tax year or years for which the lien is claimed; and
G. The municipality claiming the lien.
A copy of the notice of lien shall must be given by certified mail, return receipt requested, at the last known address, to the taxpayer, to the owner, if the owner is not the taxpayer and to any secured party who has a recorded security interest. Failure to give notice to any secured party who has a perfected security interest shall prevent prevents the lien from taking precedence over that security interest, but shall does not otherwise affect the validity of the lien.
5. Effective period of lien; limitation period. The lien shall be is effective for a period of 5 years from the date of filing, unless discharged as provided in this section or unless a continuation statement should be is filed prior to the lapse. A continuation statement signed by the tax collector may be filed on behalf of the municipality within 6 months prior to the expiration of the 5-year period provided in this section in the same manner and to the same effect as provided in Title 11, section 9-403, subsection (3) 9-1515.
6. Rights and remedies of municipality and taxpayer. A municipality which has filed a notice of tax lien and the taxpayer against whom the lien has been filed shall have the rights and remedies of a secured party and debtor, respectively, as provided for in Title 11, sections 9-501 to 9-507 Article 9-A, Part 6, except that the municipality shall does not have the right to propose to retain any property in satisfaction of the obligation, as provided in Title 11, section 9-505 Article 9-A, Part 6.
7. Personal property liens; discharge. If any lien created under this section is discharged, then a certificate of discharge shall must promptly be filed by the tax collector of the municipality which originally filed the notice of lien, or by his that tax collector's successor, in the same manner as termination statements are filed under Title 11, section 9-404 9-1513. The municipal officer who has filed the notice of lien shall file a notice of discharge of the lien in the manner provided in this section, if:
A. The taxes for which the lien has been filed are fully paid, together with all interest and costs due thereon;
B. A cash bond or surety company bond is furnished to the municipality conditioned upon the payment of the amount liened, together with interest and cost due, within the effective period of the lien as provided in this section; or
C. A final judgment shall be is rendered in favor of the taxpayer or others claiming an interest in the liened personal property which determines either that the tax is not owed or that the lien is not valid. If the judgment determines that the tax is partially owed, then the officer who filed the notice of lien or his that officer's successor shall, within 10 days of the rendition of the final judgment, file an amended tax lien for the actual amount of tax found to be due, which amended lien shall be is effective as to the revised amount of the lien as of the date of the filing of the original notice of tax lien, and the officer, or his that officer's successor at the time of the filing of the amended tax lien, shall also file a discharge of the original tax lien.
8. Consumer goods. In the case of consumer goods, a buyer in the ordinary course of business takes free of the lien created by this section, even though the lien is perfected and even though the buyer knows of its existence.
9. Liens subordinate to security interests. The lien authorized by this section shall be is subordinated to security interests which were perfected before the effective date of this section.
10. Collection procedure. The collection procedure authorized by this section shall be is optional and shall does not affect in any way alternate collection procedures authorized by law.
11. Limitation of this section. The lien authorized by this section shall apply applies to taxes assessed on or after April 1, 1984.
Sec. D-29. 38 MRSA §2214, sub-§2, as enacted by PL 1989, c. 585, Pt. A, §7, is amended to read:
2. Mortgages. To further secure the payment of the revenue obligation securities, the trust agreement or other document may mortgage or assign the mortgage of the project, or any part of the project, and create a lien on or security interest in any or all of the project. In the event of a default with respect to the revenue obligation securities, the trustee, mortgagee or other person may be authorized by the trust agreement or other document containing a mortgage or assignment of a mortgage to take possession of, hold, manage and operate all or any part of the mortgaged property and, with or without taking possession, to sell or from time to time lease the property in accordance with law. Any security interest granted by the authority under this chapter may be created and perfected in accordance with the Uniform Commercial Code, Title 11, Article 9, notwithstanding Title 11, section 9-104, subsection 5 9-A.
Sec. D-30. Effective date. This Part takes effect July 1, 2001.
Effective August 11, 2000, unless otherwise indicated.
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