BILL NUMBER: AB 2667	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 18, 2012
	PASSED THE ASSEMBLY  MAY 7, 2012

INTRODUCED BY   Committee on Banking and Finance (Assembly Members
Eng (Chair), Achadjian (Vice Chair), Fletcher, Fuentes, Gatto, Roger
Hernández, Morrell, and Torres)

                        MARCH 5, 2012

   An act to amend Section 3440.1 of the Civil Code, relating to
personal property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2667, Committee on Banking and Finance. Personal property:
fraudulent transfers.
   Existing law provides generally that a transfer of personal
property not accompanied by delivery and change of possession of the
property is void against the transferor's creditors, except for
certain specified transfers or types of property, including personal
property that satisfies certain conditions. Among these conditions,
existing law requires the transferor or the transferee to file, prior
to the date of the intended transfer, a signed financing statement
with respect to the property transferred.
   This bill would revise the above condition by requiring the
transferor or the transferee to file, prior to the date of the
intended transfer, a financing statement authorized in an
authenticated record by the transferor with respect to the property
transferred.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3440.1 of the Civil Code is amended to read:
   3440.1.  This chapter does not apply to any of the following:
   (a) Things in action.
   (b) Ships or cargoes if either are at sea or in a foreign port.
   (c) The sale of accounts, chattel paper, payment intangibles, or
promissory notes governed by the Uniform Commercial Code, security
interests, and contracts of bottomry or respondentia.
   (d) Wines or brandies in the wineries, distilleries, or wine
cellars of the makers or owners of the wines or brandies, or other
persons having possession, care, and control of the wines or
brandies, and the pipes, casks, and tanks in which the wines or
brandies are contained, if the transfers are made in writing and
executed and acknowledged, and if the transfers are recorded in the
book of official records in the office of the county recorder of the
county in which the wines, brandies, pipes, casks, and tanks are
situated.
   (e) A transfer or assignment made for the benefit of creditors
generally or by any assignee acting under an assignment for the
benefit of creditors generally.
   (f) Property exempt from enforcement of a money judgment.
   (g) Standing timber.
   (h) Subject to the limitations in Section 3440.3, a transfer of
personal property if all of the following conditions are satisfied:
   (1) Prior to the date of the intended transfer, the transferor or
the transferee files a financing statement, with respect to the
property transferred, authorized in an authenticated record by the
transferor. The financing statement shall be filed in the office of
the Secretary of State in accordance with Chapter 5 (commencing with
Section 9501) of Division 9 of the Commercial Code, but may use the
terms "transferor" in lieu of "debtor" and "transferee" in lieu of
"secured party." The provisions of Chapter 5 (commencing with Section
9501) of Division 9 of the Commercial Code shall apply as
appropriate to the financing statement.
   (2) The transferor or the transferee publishes a notice of the
intended transfer one time in a newspaper of general circulation
published in the judicial district in which the personal property is
located, if there is one, and if there is none in the judicial
district, then in a newspaper of general circulation in the county
embracing the judicial district. The publication shall be completed
not less than 10 days before the date the transfer occurs. The notice
shall contain the name and address of the transferor and transferee
and a general statement of the character of the personal property
intended to be transferred, and shall indicate the place where the
personal property is located and a date on or after which the
transfer is to be made.
   (i) Personal property not located within this state at the time of
the transfer or attachment of the lien if the provisions of this
subdivision are not used for the purpose of evading this chapter.
   (j) A transfer of property that (1) is subject to a statute or
treaty of the United States or a statute of this state that provides
for the registration of transfers of title or issuance of
certificates of title and (2) is so far perfected under that statute
or treaty that a bona fide purchaser cannot acquire an interest in
the property transferred that is superior to the interest of the
transferee.
   (k) A transfer of personal property in connection with a
transaction in which the property is immediately thereafter leased by
the transferor from the transferee provided the transferee purchased
the property for value and in good faith (subdivision (c) of Section
10308 of the Commercial Code).
   (  l  ) Transition property, as defined in Section 840 of
the Public Utilities Code, or recovery property, as defined in
Section 848 of the Public Utilities Code.
   (m) A transfer of property by any governmental entity.