Supergeneric Collateral Descriptions in Financing Statements and Notice Filing

Abstract

In this article I discuss two significant changes to financing statement requirements made by Revised Article 9 and how those changes affect “notice filing.” First, Revised section 9-504(2) permits “supergeneric” collateral indications, such as “all assets” or “all personal property,” in financing statements. Former section 9 402(1) required that the financing statement “contain a statement indicating the types, or describing the items of collateral,” and most cases under Former Article 9 that considered the issue concluded that a supergeneric indication was not permitted by this language.

Second, Revised Article 9 does not require the debtor’s signature on the financing statement, as did Former section 9-402(1). Instead, under Revised section 9-509, the secured party is authorized to file a financing statement covering the “collateral described in the security agreement” when the security agreement is authenticated by the debtor, or to file an initial financing statement before the debtor has authenticated a security agreement if the debtor has authorized the filing in an authenticated record. This article analyzes these provisions further, considers their possible ramifications in several hypotheticals, reviews in detail one of the few cases discussing these issues, considers what effect these changes could potentially have on how “notice filing” is understood under Revised Article 9, and finally proposes some potential solutions.