Federal Financial Institutions Examination Council
|For Immediate Release||February 28, 2001|
The Federal Financial Institutions Examination Council (FFIEC) issued a statement today regarding a major revision of Article 9 of the Uniform Commercial Code (UCC) and its effect on financial institutions. Article 9 governs transactions involving the granting of credit secured by personal property. Revised Article 9 contains a number of new or revised rules for secured transactions that affect financial institutions' procedures, systems, documentation, and the enforceability of security interests.
Financial institutions and their legal counsel should consider carefully the changes in state law brought about by revised Article 9 in order to ensure the attachment and perfection of their existing and future security interests.
A copy of the statement is attached. (PDF)
The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions. The Council has five member agencies: the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The Council's activities are supported by interagency task forces and by an advisory State Liaison Committee, comprised of five representatives of state agencies that supervise financial institutions.