OCC 2001-16
OCC Bulletin
Subject: Granting Credit Secured by Personal Property
Description: FFIEC Statement on Revisions to Uniform
Commercial Code Article 9
Date: March 28, 2001

TO:  Chief Executive Officers of National Banks,
Department and Division Heads, and All Examining
Personnel 


On February 28, 2001, the Federal Financial Institutions
Examination Council (FFIEC) issued the attached
statement 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
national banks' procedures, systems, documentation,
and the enforceability of security interests.  

National banks 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.

Copies of the Uniform Commercial Code 2000 edition
(2000 Official Text with Comments), which includes the
revised Article 9, can be ordered online from
The American Law Institute at http://www.ali.org.  The
street address is 4025 Chestnut Street, Philadelphia,
PA 19104-3099.  The telephone number is (215) 243-1600,
ext. 700.

For further information regarding this bulletin,
please contact the Bank Activities and Structure
Division of the Chief Counsel's Office at
(202) 874-5300, or the Credit Risk Division at
(202) 874-5170.



______________________________
David D. Gibbons
Deputy Comptroller
Credit Risk

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