Circular No. 11345
May 10, 2001

SECURED TRANSACTIONS

Revisions to Article 9 of the UCC

To the Chief Executive Officers of All State Member Banks,
Bank Holding Companies, Edge & Agreement Corporations,
and U.S. Branches & Agencies of Foreign Banks
in the Second Federal Reserve District:

In a press release dated February 28, 2001, the Federal Financial Institutions Examination Council (FFIEC) alerted financial institutions to major revisions to Article 9 of the Uniform Commercial Code (UCC), which governs transactions involving the granting of credit secured by personal property and the sale of accounts and chattel paper. In states that have adopted it, the revised article will become effective July 1, 2001.1

The Board of Governors of the Federal Reserve System issued a supervisory letter (pdf - 23kb) (SR 01-7) on April 2, 2001, containing further guidance on this matter.

Questions may be directed to your institution’s relationship specialist at this Bank.

William L. Rutledge
Executive Vice President

1 Thirty-six states have already adopted the revised Article 9. With regard to this district, it has been introduced in the 2001 legislatures of Connecticut, New Jersey, and New York.