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Secured Transactions Guide, [¶190], Delaware, CONTENTS OF FINANCING STATEMENT

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Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶190], Delaware,CONTENTS OF FINANCING STATEMENT

Generally, a financing statement is sufficient only if the financing statement provides the name of the debtor;provides the name of the secured party or a representative of the secured party; and indicates the collateralcovered by the financing statement. (Law at ¶R812)

Also, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixturefiling and covers goods that are or are to become fixtures, must meet the above requirements and alsoindicate that it covers this type of collateral, indicate that it is to be filed in the real property records, providea description of the real property to which the collateral is related sufficient to give constructive notice of amortgage under the Delaware law if the description were contained in a record of the mortgage of the realproperty, and if the debtor does not have an interest of record in the real property, provide the name of arecord owner. (Law at ¶R812)

A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixturefiling or as a financing statement covering as-extracted collateral or timber to be cut only if: (1) the recordindicates the goods or accounts that it covers; (2) the goods are or are to become fixtures related to the realproperty described in the record or the collateral is related to the real property described in the record and isas-extracted collateral or timber to be cut; (3) the record satisfies the requirements for a financing statementin this section other than an indication that it is to be filed in the real property records; and (4) the record isduly recorded. A record of a mortgage is not a financing statement but is effective as a financing statementas provided in Section 9-502(c). (Law at ¶R812)

Debtor's Name.—A financing statement must sufficiently provide the name of the debtor by reflecting theindividual or organizational name of the debtor. If the debtor is a registered organization, then the financingstatement must provide the name of the debtor indicated on the public record of the debtor's jurisdictionof organization which shows the debtor to have been organized. A "registered organization" includescorporations, limited partnerships, and limited liability companies. If the debtor is a decedent's estate, thenthe financing statement must provide the name of the decedent and indicate that the debtor is an estate. Ifthe debtor is a trust or a trustee acting with respect to property held in trust, then the financing statementmust provide the name specified for the trust in its organic documents or, if no name is specified, thefinancing statement must provide the name of the settlor and additional information sufficient to distinguishthe debtor from other trusts having one or more of the same settlors. Further, the financing statement mustindicate, in the debtor's name itself or otherwise, that the debtor is a trust or is a trustee acting with respect toproperty held in trust. Similarly, if the debtor does not have a name per se, then the financing statement mustprovide the names of the partners, members, associates, or other persons comprising the "debtor."

Unless otherwise required, a financing statement that provides the name of the debtor is not deemedineffective by the absence of a trade name or other name of the debtor, or names of partners, members,associates, or other persons comprising the debtor. At the same time, a financing statement that providesonly the debtor's trade name does not sufficiently provide the name of the debtor. Also, a financing statementmay provide the name of more than one debtor. (Law at ¶R813) Further, a financing statement that fails tosufficiently provide the name of the debtor is considered "seriously misleading" and will render the financingstatement ineffective. (Law at ¶R816)

Secured Party's Name.—A financing statement must sufficiently provide the name of the secured party, andmay provide the name of more than one secured party. However, the failure to indicate the representativecapacity of a secured party or representative of a secured party does not affect the sufficiency of thefinancing statement. (Law at ¶R813)

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Collateral.—A financing statement must sufficiently indicate the collateral that it covers. Accordingly, thefinancing statement must provide: (1) a description of the collateral; or (2) an indication that the financingstatement covers all assets or all personal property. (Law at ¶R814)


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Secured Transactions Guide, [¶200] , Delaware, FILING OR RECORDING


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶200], Delaware,FILING OR RECORDING

Generally, the UCC provides for a system of filing or recording of records pertaining to a creditor's securityinterest in a debtor's personal property. Under the UCC, a "record" refers to information that is inscribed ona tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.(Law at ¶R702(69)) The primary function of filing or recording the proper record, as designated by statute, isto provide notice of the pertinent security interest to third parties. Consequently, a secured party will want toensure that its security interest is perfected, and the concomitant notice to third parties is given, by placingthe proper record in the official custody of the appropriate filing officer, whether that placement is by thedelivery of a written record or by electronic means. The communication of a record to a filing office and thetender of the filing fee or acceptance of the record by the filing office constitutes "filing." (See law at ¶R826)

It is important to note that filing or complying with the UCC filing requirements is not of itself a factor indetermining whether the collateral actually secures an obligation. This principle usually comes into play whena consignment, lease, or bailment is present and a precautionary filing is made by a creditor. At the sametime, if it is determined for another reason that the collateral does secure the obligation, then the securityinterest held by the consignor, lessor, bailor, owner, or buyer which attaches to the collateral is perfected bythe filing or compliance. (Law at ¶R815)





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Secured Transactions Guide, [¶201] , Delaware, Where to File


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶201], Delaware,Where to File

Except as otherwise provided, if the local law of Delaware governs perfection of a security interest oragricultural lien, the office in which to file a financing statement to perfect the security interest or agriculturallien is: (1) the office designated for the filing or recording of a record of a mortgage on the related realproperty, if: (a) the collateral is as-extracted collateral or timber to be cut; or (b) the financing statement isfiled as a fixture filing and the collateral is goods that are or are to become fixtures; or (2) the office of theSecretary of State, in all other cases, including a case in which the collateral is goods that are or are tobecome fixtures and the financing statement is not filed as a fixture filing.

The office in which to file a financing statement to perfect a security interest in collateral, including fixtures,of a transmitting utility is the office of the Secretary of State. The financing statement also constitutes afixture filing as to the collateral indicated in the financing statement which is or is to become fixtures. (Law at¶R811)

The address of the Delaware Secretary of State is: Delaware Secretary of State, UCC Division, P.O. Box793, Dover, Delaware 19903; courier delivery may be accomplished at the Townsend Building, 401 FederalStreet, Suite 4, Dover, Delaware, 19901.

Real estate mortgages are recorded in the office of the recorder of deeds where the land is located. (Del.Code Anno., Sec. 25-151)



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Secured Transactions Guide, [¶202] , Delaware, Who May File


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶202], Delaware, WhoMay File

A person may file an initial financing statement, amendment that adds collateral covered by a financingstatement, or amendment that adds a debtor to a financing statement only if: (1) the debtor authorizes thefiling in an authenticated record; or (2) the person holds an agricultural lien that has become effective at thetime of filing, and the financing statement covers only collateral in which the person holds an agricultural lien.

Similarly, a person may file an amendment other than an amendment that adds collateral covered by afinancing statement or an amendment that adds a debtor to a financing statement only if: (1) the securedparty of record authorizes the filing; or (2) the amendment is a termination statement for a financingstatement as to which the secured party of record has failed to file or send a termination statement, thedebtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.

In keeping with the concept of filing "authorization," by authenticating a security agreement, a debtorauthorizes the filing of an initial financing statement, and an amendment, covering: (1) the collateraldescribed in the security agreement; and (2) property that becomes collateral, whether or not the securityagreement expressly covers proceeds.

If there is more than one secured party of record for a financing statement, each secured party of record mayauthorize the filing of an amendment. (Law at ¶R819)



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Secured Transactions Guide, [¶203] , Delaware, How to File


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶203], Delaware, Howto File

In terms of its filing requirements, the UCC is "medium-neutral" because it makes clear that parties mayfile and otherwise communicate with a filing office by means of records communicated and stored in mediaother than on paper. Accordingly, filings required by the UCC, such as a financing statement, may be filedelectronically or as a written record.

The communication of a record to a filing office and the tender of the filing fee or acceptance of the record bythe filing office constitutes "filing." (See law at ¶R826.)

Also, see ¶200 for a discussion of filing or recording, and see ¶240 for a discussion of a filing'seffectiveness.



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Secured Transactions Guide, [¶205], Delaware, FILING OFFICER RESPONSIBILITIES


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶205], Delaware,FILING OFFICER RESPONSIBILITIES

General Duties.—In particular, the filing office must: (1) assign a unique number to the filed record; (2) createa record that bears the number assigned to the filed record and the date and time of filing; (3) maintain thefiled record for public inspection; and (4) index the filed record in accordance with statutory provisions. (Lawat ¶R831)

Special indexing rules have been formulated for a financing statement that is filed as a fixture filing or coversas-extracted collateral or timber to be cut. Also, the filing office must perform its above-stated duties atthe time and in the manner prescribed by filing-office rule, but not later than two business days after thefiling office receives the record in question. (Law at ¶R831) Still, a delay by the filing office beyond theconventional time limit will be excused if the delay is caused by interruption of computer facilities, failure ofequipment, emergency conditions, or other circumstances beyond the control of the filing officer. (Law at¶R836)

Post-Lapse Requirements.—The filing office will be required to maintain a record of the information providedin a filed financing statement for at least one year after the effectiveness of the financing statement haslapsed under Section 9-515 with respect to all secured parties of record. The record must be retrievable byusing the name of the debtor and by using the file number assigned to the initial financing statement to whichthe record relates. For states in which real-estate filing offices require additional information in amendmentsand cannot search their records by both the name of the debtor and the file number, the record must beretrievable by using the name of the debtor and: (1) if the record was filed or recorded in the filing officedesignated for filing a record of a mortgage on the related real property, by using the file number assigned tothe initial financing statement to which the record relates and the date and time that the record was filed orrecorded; or (2) if the record was filed in the filing office required for all other filings, by using the file numberassigned to the initial financing statement to which the record relates.

Except to the extent that a statute governing disposition of public records provides otherwise, the filing officeimmediately may destroy any written record evidencing a financing statement. However, if the filing officedestroys a written record, it must maintain another record of the financing statement which complies with theabove post-lapse requirements. (Law at ¶R834)

Refusal to Accept Record for Filing.—A filing office may refuse to accept a record for filing only for areason set forth in §9-516(b) of the UCC. If a filing office refuses to accept a record for filing, then it mustcommunicate to the person who presented the record that fact, the reason for the refusal, and the date andtime the record would have been filed had the filing office accepted it. (Law at ¶R832)

Filing does not occur with respect to a record that a filing office refuses to accept because:

(1) the record is not communicated by a method or medium of communication authorized by the filingoffice;

(2) an amount equal to or greater than the applicable filing fee is not tendered;(3) the filing office is unable to index the record because: (a) in the case of an initial financing

statement, the record does not provide a name for the debtor; (b) in the case of an amendmentor correction statement, the record: (i) does not identify the initial financing statement as requiredin relation to an amendment or a claim concerning an inaccurate or wrongfully filed record, asapplicable; or (ii) identifies an initial financing statement whose effectiveness has lapsed; (c)in the case of an initial financing statement that provides the name of a debtor identified as anindividual or an amendment that provides a name of a debtor identified as an individual which wasnot previously provided in the financing statement to which the record relates, the record does notidentify the debtor's last name; or (d) in the case of a record filed (or recorded) in the filing office







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designated for filing or recording of a record of a mortgage in related real property, the record doesnot provide a sufficient description of the real property to which it relates;

(4) in the case of an initial financing statement or an amendment that adds a secured party of record,the record does not provide a name and mailing address for the secured party of record;

(5) in the case of an initial financing statement or an amendment that provides a name of a debtorwhich was not previously provided in the financing statement to which the amendment relates,the record does not: (1) provide a mailing address for the debtor; (2) indicate whether the debtoris an individual or an organization; or (3) if the financing statement indicates that the debtor is anorganization, provide: (a) a type of organization for the debtor; or (b) a jurisdiction of organizationfor the debtor;

(6) in the case of an assignment reflected in an initial financing statement or an amendment, therecord does not provide a name and mailing address for the assignee; or

(7) in the case of a continuation statement, the record is not filed within the prescribed six-monthperiod. (Law at ¶R826)

For purposes of the above rules:

(1) a record does not provide information if the filing office is unable to read or decipher theinformation;

(2) a record that does not indicate that it is an amendment or identify an initial financing statement towhich it relates, as required by Section 9-512, 9-514, or 9-518, is an initial financing statement

(3) for an initial financing statement filed in a filing office described in Section 9-501(a)(1) on the formspecified in Section 9-521(a), the requirements of Section 9605(f) of Title 9 may be satisfied byplacing the county tax assessment parcel identification number in box 4 of the form

(4) for a financing statement amendment filed in a filing office described in Secton 9-501(a)(1) on theform specified in Section 9-521(b), the requirements of Section 9605(f) of Title 9 may be satisfiedby placing the county tax assessment parcel identification number in box 8 of the form;

(5) for an initial financing statement filed in a filing office described in Section 9-501(a)(1), therequirements of Section 9605(h) of Title 9 will be satisfied by including the information required bySection 9-502(b); and

(6) for a financing statement amendment filed in a filing office described in Section 9-501(a)(1), therequirements of Section 9605(h) of Title 9 will be satisfied by including the information required bySection 9-512(a).(Law at ¶R826)

Acknowledgment of Filing.—If a person that files a written record requests an acknowledgment of the filing,the filing office is required to send to the person an image of the record showing the number assigned to therecord and the date and time of the filing of the record. However, if the person furnishes a copy of the recordto the filing office, the filing office may instead note on the copy the number assigned to the record and thedate and time of the filing of the record and send the copy to the person.

If a person files a record other than a written record, the filing office must communicate to the person anacknowledgment that provides: (1) the information in the record; (2) the number assigned to the recordpursuant to Section 9-519(a)(1); and (3) the date and time of the filing of the record.

The filing office must also communicate or otherwise make available in a record the following information toany person that requests it:

(1) whether there is on file on a date and time specified by the filing office, but not a date earlier thanthree business days before the filing office receives the request, any financing statement that:

(a) designates a particular debtor (or, if the request so states, designates a particular debtorat the address specified in the request);

(b) has not lapsed with respect to all secured parties of record; and(c) if the request so states, has lapsed and a record of which is maintained by the filing

office;(2) the date and time of filing of each financing statement; and(3) the information provided in each financing statement.



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In communicating or making available the information, the filing office may communicate information in anymedium. However, if requested, the filing office must communicate information by issuing either its writtencertificate or a record that can be admitted into evidence in the courts of the particular state without extrinsicevidence of its authenticity.

Filing office rules will determine the time and the manner in which the requirements are met. At least weekly,the Delaware Secretary of State may offer to sell or license to the public on a nonexclusive basis, in bulk,copies of all records filed in it, in every medium from time to time available to the filing office. (Law at ¶R835)

Filing Office Rules.—Revised Article 9 requires that the Delaware Secretary of State adopt and publish rulesto implement the Article. The filing-office rules must be consistent with Revised Article 9 and adopted andpublished in accordance with the Delaware Administrative Procedures Act. To keep the filing-office rulesand practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictionsthat have enacted substantially similar filing provisions, and to keep the technology used by the filing officecompatible with the technology used by filing offices in other jurisdictions, the Delaware Secretary of State,so far as is consistent with the purposes, policies, and provisions of Revised Article 9, in adopting, amending,and repealing filing-office rules, must:

(1) consult with filing offices in other jurisdictions that enact substantially similar filing requirements;and

(2) consult the most recent version of the Model Rules promulgated by the International Association ofCorporate Administrators or any successor organization; and

(3) take into consideration the rules and practices of, and the technology used by, filing offices in otherjurisdictions that enact substantially similar filing requirements. (Law at ¶R838)



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Secured Transactions Guide, [¶210] , Delaware, FEES


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶210], Delaware, FEES

Under the Revised Article 9, the uniform filing fee for the initial financing statement, a continuation,assignment, collateral change, termination or other change is up to $100 for the National Standard Form, upto four pages. If the filing is over four pages in writing , the fee is also up to $100 plus $2 per page. Add $25more for each additional debtor name over two. The fee for filings made through the internet is a flat fee of$30. The filing fee includes the indexing of up to two names, and is an additional $25 per name after that.The fee for public finance or manufactured home transactions is $20. (Law at ¶R837)

The fee for a search request, which must be submitted in writing, is $25. Printed copies of any record are$10 for the first page and $2 for each additional page; different rate schedules may be set for bulk copies.Certified copies of UCC filings are $25 plus $2 per additional page. Expedited service fees are: up to $100for twenty-four hour service; up to $200 for same day service; up to $500 for two hour service; and up to$1,000. (Law at ¶R837)

A secured party is entitled to charge $25 for each statement of account furnished a debtor above the onestatement the debtor is entitled to receive every six months without charge. (Law at ¶R730)





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Secured Transactions Guide, [¶220], Delaware, FINANCING STATEMENT FORMS


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶220], Delaware,FINANCING STATEMENT FORMS

The initial financing statement form and the financing statement amendment form are either contained in thestatute or determined by the state filing officer, as authorized by statute. A filing office that accepts writtenrecords may not refuse to accept the written initial financing statement or the written financing statementamendment in the required form and format except for a variety of reasons set forth in ¶205 above. (Law at¶R833)

A form of financing statement authorized for use in Delaware appears at ¶R833.


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Secured Transactions Guide, [¶225] , Delaware, AMENDMENTS


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶225], Delaware,AMENDMENTS

Generally, a person may add or delete collateral covered by a financing statement by filing an amendment.Similarly, a person may continue or terminate the effectiveness of, or otherwise amend the informationprovided in, a financing statement by filing an amendment. The amendment must identify, by its file number,the initial financing statement to which the amendment relates. Further, if the amendment relates to an initialfinancing statement which was properly filed or recorded in a filing office designated for the filing or recordingof a real property mortgage, then the amendment must provide the information specified in the Code; a statemay also require that the amendment reflect the date and time that the initial financing statement was filed.(Law at ¶R822)

General Rules of Effectiveness.—Except as otherwise provided, the filing of an amendment does notextend the period of effectiveness of the financing statement. A financing statement that is amended to addcollateral is effective as to the added collateral only from the date of the filing of the amendment. A financingstatement that is amended to add a debtor is effective as to the added debtor only from the date of the filingof the amendment. Importantly, an amendment is ineffective to the extent that it:

(1) purports to delete all debtors and fails to provide the name of a debtor to be covered by thefinancing statement; or

(2) purports to delete all secured parties of record and fails to provide the name of a new secured partyof record. (Law at ¶R822)

Also, see ¶230 concerning assignments, ¶235 regarding termination statements, and ¶240 inconnection with a filing's effectiveness.







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Secured Transactions Guide, [¶230] , Delaware, ASSIGNMENTS


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶230], Delaware,ASSIGNMENTS

Generally, an assignment may be accomplished either in the initial financing statement itself or in a separateamendment to the financing statement. Except for special fixture filings (discussed below), an initial financingstatement may reflect an assignment of all of the secured party's power to authorize an amendment to thefinancing statement by providing the name and mailing address of the assignee as the name and addressof the secured party. Apart from an initial financing statement, a secured party of record may also assignall or part of its power to authorize an amendment to a financing statement by filing in the filing office anamendment of the financing statement which: (1) identifies, by its file number, the initial financing statementto which it relates; (2) provides the name of the assignor; and (3) provides the name and mailing address ofthe assignee. (Law at ¶R824)

Fixtures.—An assignment of record of a security interest in a fixture covered by a record of a mortgage whichis effective as a financing statement filed as a fixture filing may be made only by an assignment of record ofthe mortgage in the manner prescribed by the local real property law. (Law at ¶R824)

See also ¶250 concerning a secured party of record.

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Secured Transactions Guide, [¶235] , Delaware, TERMINATION


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶235], Delaware,TERMINATION

Under Revised Article a secured party may be required to file a termination statement in connection withthe security interest held in the collateral. Since most financing statements expire in five years unless acontinuation statement is filed, the secured party doesn't need to file a termination statement unless thedebtor demands that it be filed or unless "consumer goods" are involved.

The rule then is that a secured party must cause the secured party of record for a financing statement to filea termination statement for the financing statement if the financing statement covers consumer goods and:(1) there is no obligation secured by the collateral covered by the financing statement and no commitment tomake an advance, incur an obligation, or otherwise give value; or (2) the debtor did not authorize the filing ofthe initial financing statement.

To comply with the termination statement requirement, a secured party must cause the secured party ofrecord to file the termination statement within one month after those two conditions are met. Alternatively,and if earlier, a secured party must cause the secured party of record to file a termination statement within 20days after that secured party receives an authenticated demand from a debtor. (Law at ¶R823)

If consumer goods are not involved in the secured transaction, the secured party is not required to ensurethat a termination statement be issued unless the secured party receives an authenticated demand fromthe debtor requesting the termination. In that case, a secured party must, within 20 days after receiving theauthenticated demand from the debtor, cause the secured party of record for a financing statement to eithersend to the debtor a termination statement for the financing statement or to file the termination statementin the filing office, provided that certain conditions are met: (1) except in the case of a financing statementcovering accounts or chattel paper that has been sold or goods that are the subject of a consignment, theremust not be any obligation secured by the collateral covered by the financing statement and must not be anycommitment to make an advance, incur an obligation, or otherwise give value; (2) the financing statementcovers accounts or chattel paper that has been sold but as to which the account debtor or other personobligated has discharged its obligation; (3) the financing statement covers goods that were the subject of aconsignment to the debtor but are not in the debtor's possession; or (4) the debtor did not authorize the filingof the initial financing statement. (Law at ¶R823)

Generally, upon the filing of a termination statement with the filing office, the financing statement to which thetermination statement relates ceases to be effective. (Law at ¶R823)

The liability imposed upon a secured party who fails to comply with the UCC requirements coveringtermination statements is identical to that imposed for the filing of an unauthorized financing statement oramendment. (See the discussion at ¶360.)

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Secured Transactions Guide, [¶240] , Delaware, EFFECTIVENESS


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶240], Delaware,EFFECTIVENESS

Generally, a financing statement that is properly filed is effective for a period of five years after the date offiling. To continue the effectiveness of the original financing statement beyond the conventional five-yearperiod, a secured party may file a continuation statement. The continuation statement may be filed onlywithin six months before the expiration of the five-year period.

The effectiveness of a filed financing statement lapses on the expiration of the period of its effectivenessunless before the lapse a continuation statement is filed. Upon lapse, a financing statement ceases to beeffective and any security interest or agricultural lien that was perfected by the financing statement becomesunperfected, unless the security interest is perfected without filing. If the security interest or agricultural lienbecomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of thecollateral for value.

Except as otherwise provided in Revised Article 9, upon timely filing of a continuation statement, theeffectiveness of the initial financing statement continues for a period of five years, beginning on the dayon which the financing statement would have become ineffective in the absence of the filing. Upon theexpiration of that additional five-year period, the financing statement lapses in the same manner unless,before the lapse, another continuation statement is filed. In this manner, succeeding continuation statementsmay be filed to continue the effectiveness of the initial financing statement. (Law at ¶R825)

With few exceptions, an initial financing statement filed in connection with a public-finance transaction ormanufactured-home transaction is effective for a period of 30 years after the date of filing if it indicates thatit is filed in connection with a public-finance transaction or manufactured-home transaction. If a debtor is atransmitting utility and a filed financing statement indicates that fact, then the financing statement is effectiveuntil a termination statement is filed. A record of a mortgage that is effective as a financing statement filedas a fixture filing remains effective until the mortgage is released or satisfied of record or its effectivenessotherwise terminates as to the real property. (Law at ¶R825)

Other circumstances under which the effectiveness of a filed financing statement may be affected include:

A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased,licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even ifthe secured party knows of or consents to the disposition.

A financing statement is not rendered ineffective if, after the financing statement is filed, theinformation provided in the financing statement becomes seriously misleading. However, if a debtorso changes its name that a filed financing statement becomes seriously misleading: (1) the financingstatement is effective to perfect a security interest in collateral acquired by the debtor before, orwithin four months after, the change; and (2) the financing statement is not effective to perfect asecurity interest in collateral acquired by the debtor more than four months after the change, unless anamendment to the financing statement which renders the financing statement not seriously misleadingis filed within four months after the change. (Law at ¶R817)

A filed financing statement naming an original debtor is effective to perfect a security interest in collateralin which a new debtor has or acquires rights to the extent that the financing statement would have beeneffective had the original debtor acquired rights in the collateral. If the difference between the name of theoriginal debtor and that of the new debtor causes a filed financing statement that is initially effective tobe seriously misleading: (1) the financing statement is effective to perfect a security interest in collateralacquired by the new debtor before, and within four months after, the new debtor becomes bound; and (2) thefinancing statement is not effective to perfect a security interest in collateral acquired by the new debtor morethan four months after the new debtor becomes bound unless an initial financing statement providing the

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name of the new debtor is filed before the expiration of that time. This provision does not apply to collateralas to which a filed financing statement remains effective against the new debtor. (Law at ¶R818)

A filed record is effective only to the extent that it was filed by a person entitled to file it. A record authorizedby one secured party of record does not affect the financing statement with respect to another secured partyof record. A continuation statement that is not filed within the prescribed six-month period is ineffective. (Lawat ¶R820)

Two final provisions relate to the effectiveness of filed financing statements or records. First, the failure of thefiling office to index a record correctly does not affect the effectiveness of the filed record. (Law at ¶R827)Second, a person may file in the filing office a correction statement with respect to a record indexed thereunder the person's name if the person believes that the record is inaccurate or was wrongfully filed. Thereare two alternative relating to the correction statements.

Generally, a correction statement must: (1) identify the record to which it relates by the file number assignedto the initial financing statement to which the record relates; (2) indicate that it is a correction statement; and(3) provide the basis for the person's belief that the record is inaccurate and indicate the manner in which theperson believes the record should be amended to cure any inaccuracy or provide the basis for the person'sbelief that the record was wrongfully filed.

If a state's real-estate filing offices require additional information in amendments and cannot search theirrecords by both the name of the debtor and the file number, a correction statement must: (1) identify therecord to which it relates by: (a) the file number assigned to the initial financing statement to which the recordrelates; and (b) if the correction statement relates to a record filed or recorded in a filing office where amortgage is filed or recorded, the date and time that the initial financing statement was filed or recorded andthe information required for such financing statements; (2) indicate that it is a correction statement; and (3)provide the basis for the person's belief that the record is inaccurate and indicate the manner in which theperson believes the record should be amended to cure any inaccuracy or provide the basis for the person'sbelief that the record was wrongfully filed. (Law at ¶R828)





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Secured Transactions Guide, [¶250], Delaware, SECURED PARTY OF RECORD


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Explanations Annotated > FILING SECURITY INTERESTS > [¶250], Delaware,SECURED PARTY OF RECORD

With respect to a financing statement, a "secured party of record" is a person whose name is provided as thename of the secured party or a representative of the secured party in an initial financing statement that hasbeen filed. If an initial financing statement is filed that indicates an assignment, then the assignee named inthe initial financing statement is the secured party of record with respect to the financing statement. Likewise,if an amendment of a financing statement which provides the name of a person as a secured party or arepresentative of a secured party is filed, then the person named in that amendment is a secured party ofrecord. If the amendment is filed in relation to a filed financing statement that has been assigned, then theassignee named in the amendment is a secured party of record. (Law at ¶R821)

See also ¶230 and ¶270 for a discussion of assignments.

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Secured Transactions Guide, Delaware, Sec. 9-501. Filing office


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-501. Filing office

(a) Filing offices. Except as otherwise provided in subsection (b), if the local law of this State governsperfection of a security interest or agricultural lien, the office in which to file a financing statement to perfectthe security interest or agricultural lien is:

(1) the office designated for the filing or recording of a record of a mortgage on the related real property, if:

(A) the collateral is as-extracted collateral or timber to be cut; or

(B) the financing statement is filed as a fixture filing and the collateral is goods that are or are to becomefixtures; or

(2) the office of the Secretary of State, in all other cases, including a case in which the collateral is goodsthat are or are to become fixtures and the financing statement is not filed as a fixture filing.

(b) Filing office for transmitting utilities. The office in which to file a financing statement to perfect a securityinterest in collateral, including fixtures, of a transmitting utility is the office of the Secretary of State. Thefinancing statement also constitutes a fixture filing as to the collateral indicated in the financing statementwhich is or is to become fixtures. [Comp. at ¶201.]

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Secured Transactions Guide, Delaware, Sec. 9-502. Contents offinancing statement—Record of mortgage as financing statement—Timeof filing financing statement


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware,Sec. 9-502. Contents of financing statement—Record of mortgage as financing statement—Time of filingfinancing statement

(a) Sufficiency of financing statement. Subject to subsection (b), a financing statement is sufficient only if it:

(1) provides the name of the debtor;

(2) provides the name of the secured party or a representative of the secured party; and

(3) indicates the collateral covered by the financing statement.

(b) Real-property-related financing statements. Except as otherwise provided in Section 9-501(b), to besufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as afixture filing and covers goods that are or are to become fixtures, must satisfy subsection (a) and also:

(1) indicate that it covers this type of collateral;

(2) indicate that it is to be filed in the real property records;

(3) provide a description of the real property to which the collateral is related sufficient to give constructivenotice of a mortgage under the law of this State if the description were contained in a record of the mortgageof the real property; and

(4) if the debtor does not have an interest of record in the real property, provide the name of a record owner.

(c) Record of mortgage as financing statement. A record of a mortgage is effective, from the date ofrecording, as a financing statement filed as a fixture filing or as a financing statement covering as-extractedcollateral or timber to be cut only if:

(1) the record indicates the goods or accounts that it covers;

(2) the goods are or are to become fixtures related to the real property described in the record or thecollateral is related to the real property described in the record and is as-extracted collateral or timber to becut;

(3) the record complies with the requirements for a financing statement in this section other than anindication that it is to be filed in the real property records; and

(4) the record is duly recorded.

A record of a mortgage is not a financing statement but is effective as a financing statement as provided inSection 9-502(c).

(d) Filing before security agreement or attachment. A financing statement may be filed before a securityagreement is made or a security interest otherwise attaches. [Comp. at ¶190.]

[ Sec. 9-502, as amended by Laws 2005, Ch. 66, approved and effective June 28, 2005.].01 2005 Amendment.—The amendment added "A record of a mortgage is not a financing statement but is effective as afinancing statement as provided in Section 9-502(c)." before subsection (d).—CCH.

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Secured Transactions Guide, Delaware, Sec. 9-503. Name of debtor andsecured party


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-503. Name of debtor and secured party

(a) Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:

(1) if the debtor is a registered organization, only if the financing statement provides the name of the debtorindicated on the public record of the debtor's jurisdiction of organization which shows the debtor to havebeen organized;

(2) if the debtor is a decedent's estate, only if the financing statement provides the name of the decedent andindicates that the debtor is an estate;

(3) if the debtor is a trust (other than a trust that is a registered organization) or a trustee acting with respectto property held in trust (including a trustee that is a registered organization), only if the financing statement:

(A) provides the name specified for the trust in its organic documents or, if no name is specified, provides thename of the settlor and additional information sufficient to distinguish the debtor from other trusts having oneor more of the same settlors; and

(B) indicates that the debtor is a trust or is a trustee acting with respect to property held in trust; and

(4) in other cases:

(A) if the debtor has a name, only if it provides the individual or organizational name of the debtor; and

(B) if the debtor does not have a name, only if it provides the names of the partners, members, associates, orother persons comprising the debtor.

(b) Additional debtor-related information. A financing statement that provides the name of the debtor inaccordance with subsection (a) is not rendered ineffective by the absence of:

(1) a trade name or other name of the debtor; or

(2) unless required under subsection (a)(4)(B), names of partners, members, associates, or other personscomprising the debtor.

(c) Debtor's trade name insufficient. A financing statement that provides only the debtor's trade name doesnot sufficiently provide the name of the debtor.

(d) Representative capacity. Failure to indicate the representative capacity of a secured party orrepresentative of a secured party does not affect the sufficiency of a financing statement.

(e) Multiple debtors and secured parties. A financing statement may provide the name of more than onedebtor and the name of more than one secured party. [Comp. at ¶190.]

[ Sec. 9-503, as amended by Laws 2004, Ch. 332, approved July 6, 2004, effective January 1, 2005.].01 2004 Amendment.—In the introductory portion of subsection (a)(3), the amendment added "(other than a trust that is aregistered organization)" after "debtor is a trust" and added "(including a trustee that is a registered organization)" after "propertyheld in trust". In subsection (a)(3)(B), the amendment deleted ", in the debtor's name or otherwise," after "indicates".—CCH.

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Secured Transactions Guide, Delaware, Sec. 9-504. Indication ofcollateral


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-504. Indication of collateral

A financing statement sufficiently indicates the collateral that it covers only if the financing statementprovides:

(1) a description of the collateral pursuant to Section 9-108; or

(2) an indication that the financing statement covers all assets or all personal property. [Comp. at ¶190.]

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Secured Transactions Guide, Delaware, Sec. 9-504A. Indication ofcollateral that is accounts, chattel paper, instruments or generalintangibles


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-504A. Indication of collateral that is accounts, chattel paper, instruments or general intangibles

(a) A financing statement sufficiently indicates the collateral that it covers if the collateral is accounts, chattelpaper, instruments or general intangibles and:

(1) the financing statement provides a description of one or more records (such as a computer file,microfiche list, printed list or other record) in the possession or control of the secured party and such recordor records identify the specific accounts, chattel paper, instruments or general intangibles constituting thecollateral;

(2) the financing statement indicates:

(A) that the items described on the record or records in the possession or control of the secured party areaccounts, chattel paper, instruments or general intangibles; or

(B) the nature of the items on the record or records in the possession or control of the secured party bygeneral description or category; and

(3) the record or records in the possession or control of the secured party contain:

(A) confidential information, such as credit card numbers, loan numbers or taxpayer identification numbers,identifying the specific account debtors or persons obligated on the instruments; or

(B) a description of 100 or more specific accounts, chattel paper, instruments or general intangibles.

(b) Subsection (a) provides an additional method of sufficiently indicating collateral in a financing statementfor purposes of this Article. A financing statement not complying with subsection (a) but otherwise complyingwith Section 9-504 shall sufficiently indicate the collateral it covers for purposes of this Article.

[ Sec. 9-504A, as added by Laws 2004, Ch. 332, approved July 6, 2004, effective January 1, 2005.]

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Secured Transactions Guide, Delaware, Sec. 9-505. Filing andcompliance with other statutes and treaties for consignments, leases,other bailments, and other transactions


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-505. Filing and compliance with other statutes and treaties for consignments, leases, other bailments, andother transactions

(a) Use of terms other than "debtor" and "secured party." A consignor, lessor, or other bailor of goods ora buyer of a payment intangible or promissory note may file a financing statement, or may comply with astatute or treaty described in Section 9-311(a), using the terms "consignor", "consignee", "lessor", "lessee","bailor", "bailee", "owner", "registered owner", "buyer", "seller", or words of similar import, instead of theterms "secured party" and "debtor".

(b) Effect of financing statement under subsection (a). This part applies to the filing of a financing statementunder subsection (a) and, as appropriate, to compliance that is equivalent to filing a financing statementunder Section 9-311(b), but the filing or compliance is not of itself a factor in determining whether thecollateral secures an obligation. If it is determined for another reason that the collateral secures anobligation, a security interest held by the consignor, lessor, bailor, owner, or buyer which attaches to thecollateral is perfected by the filing or compliance. [Comp. at ¶200.]

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Secured Transactions Guide, Delaware, Sec. 9-506. Effect of errors oromissions


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-506. Effect of errors or omissions

(a) Minor errors and omissions. A financing statement substantially satisfying the requirements of this partis effective, even if it has minor errors or omissions, unless the errors or omissions make the financingstatement seriously misleading.

(b) Financing statement seriously misleading. Except in the case of individual debtors and as otherwiseprovided in subsection (c), a financing statement that fails sufficiently to provide the name of the debtor inaccordance with Section 9-503(a) is seriously misleading.

(c) Financing statement not seriously misleading. If a search of the records of the filing office under thedebtor's correct name, using the filing office's standard search logic, if any, would disclose a financingstatement that fails sufficiently to provide the name of the debtor in accordance with Section 9-503(a), thename provided does not make the financing statement seriously misleading.

(d) "Debtor's correct name." For purposes of Section 9-508(b), the "debtor's correct name" in subsection (c)means the correct name of the new debtor. [Comp. at ¶190.]



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Secured Transactions Guide, Delaware, Sec. 9-507. Effect of certainevents on effectiveness of financing statement


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-507. Effect of certain events on effectiveness of financing statement

(a) Disposition. A filed financing statement remains effective with respect to collateral that is sold,exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural liencontinues, even if the secured party knows of or consents to the disposition.

(b) Information becoming seriously misleading. Except as otherwise provided in subsection (c) andSection 9-508, a financing statement is not rendered ineffective if, after the financing statement is filed, theinformation provided in the financing statement becomes seriously misleading under Section 9-506.

(c) Change in debtor's name. If a debtor so changes its name that a filed financing statement becomesseriously misleading under Section 9-506:

(1) the financing statement is effective to perfect a security interest in collateral acquired by the debtorbefore, or within four months after, the change; and

(2) the financing statement is not effective to perfect a security interest in collateral acquired by the debtormore than four months after the change, unless an amendment to the financing statement which renders thefinancing statement not seriously misleading is filed within four months after the change. [Comp. at ¶240.]



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Secured Transactions Guide, Delaware, Sec. 9-508. Effectivenessof financing statement if new debtor becomes bound by securityagreement


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement

(a) Financing statement naming original debtor. Except as otherwise provided in this section, a filed financingstatement naming an original debtor is effective to perfect a security interest in collateral in which a newdebtor has or acquires rights to the extent that the financing statement would have been effective had theoriginal debtor acquired rights in the collateral.

(b) Financing statement becoming seriously misleading. If the difference between the name of the originaldebtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) tobe seriously misleading under Section 9-506:

(1) the financing statement is effective to perfect a security interest in collateral acquired by the new debtorbefore, and within four months after, the new debtor becomes bound under Section 9-203(d); and

(2) the financing statement is not effective to perfect a security interest in collateral acquired by the newdebtor more than four months after the new debtor becomes bound under Section 9-203(d) unless an initialfinancing statement providing the name of the new debtor is filed before the expiration of that time.

(c) When section not applicable. This section does not apply to collateral as to which a filed financingstatement remains effective against the new debtor under Section 9-507(a). [Comp. at ¶240.]



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Secured Transactions Guide, Delaware, Sec. 9-509. Persons entitled tofile a record


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-509. Persons entitled to file a record

(a) When person entitled to file record. A person may file an initial financing statement, amendment that addscollateral covered by a financing statement, or amendment that adds a debtor to a financing statement onlyif:

(1) the debtor authorizes the filing in an authenticated record; or

(2) the person holds an agricultural lien that has become effective at the time of filing and the financingstatement covers only collateral in which the person holds an agricultural lien.

(b) Security agreement as authorization. By authenticating or becoming bound as debtor by a securityagreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment,covering:

(1) the collateral described in the security agreement; and

(2) property that becomes collateral under Section 9-315(a)(2), whether or not the security agreementexpressly covers proceeds.

(c) Acquisition of collateral as authorization. By acquiring collateral in which a security interest or agriculturallien continues under Section 9-315(a)(1), a debtor authorizes the filing of an initial financing statement, andan amendment, covering the collateral and property that becomes collateral under Section 9-315(a)(2).

(d) Person entitled to file certain amendments. A person may file an amendment other than an amendmentthat adds collateral covered by a financing statement or an amendment that adds a debtor to a financingstatement only if:

(1) the secured party of record authorizes the filing; or

(2) the amendment is a termination statement for a financing statement as to which the secured party ofrecord has failed to file or send a termination statement as required by Section 9-513(a) or (c), the debtorauthorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.

(e) Multiple secured parties of record. If there is more than one secured party of record for a financingstatement, each secured party of record may authorize the filing of an amendment under subsection (d).

(f) Trusts and Trustees. If either the debtor or the secured party is a trust (including a trust that is a registeredorganization) or a trustee acting with respect to property held in trust and is otherwise entitled to file a recordpursuant to Section 9-509, authorization by an authorized person in the name of either the trust or thetrustee shall be effective. [Comp. at ¶202, ¶360.]

[ Sec. 9-509, as amended by Laws 2004, Ch. 332, approved July 6, 2004, effective January 1, 2005.].01 2004 Amendment.—The amendment added subsection (f).—CCH.




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Secured Transactions Guide, Delaware, Sec. 9-510. Effectiveness offiled record


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-510. Effectiveness of filed record

(a) Filed record effective if authorized. A filed record is effective only to the extent that it was filed by aperson that may file it under Section 9-509.

(b) Authorization by one secured party. A record authorized by one secured party of record does not affectthe financing statement with respect to another secured party of record.

(c) Continuation statement not timely filed. A continuation statement that is not filed within the six-monthperiod prescribed by Section 9-515(d) is ineffective. [Comp. at ¶240.]



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Secured Transactions Guide, Delaware, Sec. 9-511. Secured party ofrecord


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-511. Secured party of record

(a) Secured party of record. A secured party of record with respect to a financing statement is a personwhose name is provided as the name of the secured party or a representative of the secured party in aninitial financing statement that has been filed. If an initial financing statement is filed under Section 9-514(a),the assignee named in the initial financing statement is the secured party of record with respect to thefinancing statement.

(b) Amendment naming secured party of record. If an amendment of a financing statement which providesthe name of a person as a secured party or a representative of a secured party is filed, the person named inthe amendment is a secured party of record. If an amendment is filed under Section 9-514(b), the assigneenamed in the amendment is a secured party of record.

(c) Amendment deleting secured party of record. A person remains a secured party of record until the filing ofan amendment of the financing statement which deletes the person. [Comp. at ¶250.]



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Secured Transactions Guide, Delaware, Sec. 9-512. Amendment offinancing statement


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-512. Amendment of financing statement

(a) Amendment of information in financing statement. Subject to Section 9-509, a person may add or deletecollateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwiseamend the information provided in, a financing statement by filing an amendment that:

(1) identifies, by its file number, the initial financing statement to which the amendment relates; and

(2) if the amendment relates to an initial financing statement filed in a filing office described in Section9-501(a)(1), provides the information specified in Section 9-502(b).

(b) Period of effectiveness not affected. Except as otherwise provided in Section 9-515, the filing of anamendment does not extend the period of effectiveness of the financing statement.

(c) Effectiveness of amendment adding collateral. A financing statement that is amended by an amendmentthat adds collateral is effective as to the added collateral only from the date of the filing of the amendment.

(d) Effectiveness of amendment adding debtor. A financing statement that is amended by an amendmentthat adds a debtor is effective as to the added debtor only from the date of the filing of the amendment.

(e) Certain amendments ineffective. An amendment is ineffective to the extent it:

(1) purports to delete all debtors and fails to provide the name of a debtor to be covered by the financingstatement; or

(2) purports to delete all secured parties of record and fails to provide the name of a new secured party ofrecord. [Comp. at ¶225, ¶480.]




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Secured Transactions Guide, Delaware, Sec. 9-513. Terminationstatement


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-513. Termination statement

(a) Consumer goods. A secured party shall cause the secured party of record for a financing statement to filea termination statement for the financing statement if the financing statement covers consumer goods and:

(1) there is no obligation secured by the collateral covered by the financing statement and no commitment tomake an advance, incur an obligation, or otherwise give value; or

(2) the debtor did not authorize the filing of the initial financing statement.

(b) Time for compliance with subsection (a). To comply with subsection (a), a secured party shall cause thesecured party of record to file the termination statement:

(1) within one month after there is no obligation secured by the collateral covered by the financing statementand no commitment to make an advance, incur an obligation, or otherwise give value; or

(2) if earlier, within 20 days after the secured party receives an authenticated demand from a debtor.

(c) Other collateral. In cases not governed by subsection (a), within 20 days after a secured party receivesan authenticated demand from a debtor, the secured party shall cause the secured party of record for afinancing statement to send to the debtor a termination statement for the financing statement or file thetermination statement in the filing office if:

(1) except in the case of a financing statement covering accounts or chattel paper that has been sold orgoods that are the subject of a consignment, there is no obligation secured by the collateral covered by thefinancing statement and no commitment to make an advance, incur an obligation, or otherwise give value;

(2) the financing statement covers accounts or chattel paper that has been sold but as to which the accountdebtor or other person obligated has discharged its obligation;

(3) the financing statement covers goods that were the subject of a consignment to the debtor but are not inthe debtor's possession; or

(4) the debtor did not authorize the filing of the initial financing statement.

(d) Effect of filing termination statement. Except as otherwise provided in Section 9-510, upon the filing of atermination statement with the filing office, the financing statement to which the termination statement relatesceases to be effective. Except as otherwise provided in Section 9-510, for purposes of Sections 9-519(g),9-522(a), and 9-523(c), the filing with the filing office of a termination statement relating to a financingstatement that indicates that the debtor is a transmitting utility also causes the effectiveness of the financingstatement to lapse. [Comp. at ¶235, ¶360.]




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Secured Transactions Guide, Delaware, Sec. 9-514. Assignment ofpowers of secured party of record


Secured Transactions > Secured Transactions Guide - Charts, explanations, UCC provisions,state and federal laws and regulations, court decisions, & other materials, organized bytopic > DELAWARE > Selected Law Provisions > Delaware Code > Title 6. Commerce and Trade > Article 9.Secured Transactions [Added by Laws 2000, Ch. 401, approved July 7, 2000, effective July 1, 2001] > Part5. Filing > Subpart 1. Filing Office—Contents and Effectiveness of Financing Statement > Delaware, Sec.9-514. Assignment of powers of secured party of record

(a) Assignment reflected on initial financing statement. Except as otherwise provided in subsection (c), aninitial financing statement may reflect an assignment of all of the secured party's power to authorize anamendment to the financing statement by providing the name and mailing address of the assignee as thename and address of the secured party.

(b) Assignment of filed financing statement. Except as otherwise provided in subsection (c), a secured partyof record may assign of record all or part of its power to authorize an amendment to a financing statement byfiling in the filing office an amendment of the financing statement which:

(1) identifies, by its file number, the initial financing statement to which it relates;

(2) provides the name of the assignor; and

(3) provides the name and mailing address of the assignee.

(c) Assignment of record of mortgage. An assignment of record of a security interest in a fixture coveredby a record of a mortgage which is effective as a financing statement filed as a fixture filing under Section9-502(c) may be made only by an assignment of record of the mortgage in the manner provided by law ofthis State other than the Uniform Commercial Code. [Comp. at ¶230.]

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