"(2) no right of sale or other disposition of the property, willfully and wrongfully secretes, withholds, sells, or disposes of the property, or converts it to his own use, or, without the consent of the secured party, removes it out of the District, or maliciously injures or destroys it, in violation of the security agreement if the lesser of the value of the proceeds not so accounted for or of the property so secreted, withheld, sold, disposed of, converted, removed, or injured or destroyed, or, in either case, of the unpaid balance of the monetary obligation so secured, is more than $100, shall be fined not more than $5,000 or imprisoned not more than five years, or both; or, if the lesser of any of the values as herein described is $100 or less, shall be fined not more than $1,000 or imprisoned not more than one year, or both. "(b) In a case in which a debtor in possession of personal property subject to a security interest, who would be guilty of an offense under this section, is a corporation or a partnership, an officer, director, partner, or agent of the debtor who aids or abets in the commission of the offense shall be punished as provided by subsection (a) of this section. "(c) As used in this section, 'security agreement', 'security interest', and 'secured party' have the same meanings as those given to the terms by sections 28:9-105 (h,, 28:1—201 (38), and 28:9–105(i), respectively, of the District of Columbia Code.". SEC. 4 Subsection (b) of section 20 of the Act approved June 8, 1954 (ch. 269, 68 Stat. 189; D.C. Code, 1961 ed., sec 29-908g (b)), as amended by section 3 of the Act approved July 23, 1959 (Pub. L. 96-106, 73 Stat. 240), is amended to read as follows: "(b) Notwithstanding the provisions of section 28:8-204 of the District of Columbia Code, every certificate representing shares the transferability of which is restricted or limited shall state upon the face thereof that the transferability of such shares is restricted or limited and upon the face or back thereof shall either set forth a full or summary statement of any such restriction or limitation upon the transferability of such shares or shall state that the corporation will furnish to any shareholder upon request and without charge such full or summary statement.". SEC. 5. Section 2 of the Act approved June 3, 1952 (chapter 361, 66 Stat. 97; D.C. Code, 1961 ed., sec. 38-205), is amended to read as follows: "SEC. 2. (a) All persons storing, repairing, or furnishing supplies of or concerning motor vehicles including trailers shall have a lien for their agreed or reasonable charges for such storage, repairs, and supplies when such charges are incurred by an owner or conditional vendee or chattel mortgagor (including a grantor of deed of trust in lieu of mortgage) of such motor vehicle, and may detain such motor vehicle at any time they may have lawful possession thereof. Such lien shall have priority over every security interest and other lien or right in or to the vehicle except as hereinafter limited with respect to claims for storage. Before enforcing such lien, notice in writing shall be given to the title holder, every secured party and other lien holder shown by the certificate of title or registry of the vehicle, and any other persons known to claimant who have any interest in or lien upon the vehicle. Such notice shall be delivered personally or sent by registered mail to the last-known address of the person to whom given shall state that a lien is claimed for the charges therein set forth or thereto attached and shall demand payment thereof. There shall be incorporated in or attached to said notice a statement of particulars of the charge or charges for which a lien is claimed, to which may be added a claim for storage of the vehicle from the date of said notice to the date of payment or sale, which amount shall be set forth at a daily or weekly rate which shall not be in excess of charges prevailing at the time for similar storage, and shall not be in excess of $3 per day or $21 per week, which additional charge shall in no event cover a period in excess of ninety days. (b) As used in this section, 'security interest' and 'secured party' have the same meanings as those given to the terms by sections 28:1-201 and 28:9-105(i), respectively, of the District of Columbia Code." SEC. 6. (a) The definitions of "Lien", "Instrument", and "Lien Information" in section 1 of the Act approved July 2, 1940 (chapter 527, 54 Stat. 736; D.C. Code, 1961 ed., sec. 40-701) are amended to read as follows: "Lien" shall mean any right or interest in or to, any security interest as defined in section 28:1-201 of the District of Columbia Code in, or lien or encumbrance upon any motor vehicle or trailer, or the equipment or accessories affixed or sold to be affixed thereto in favor of a person other than the owner, except (1) a sale of such motor vehicle or trailer accompanied by delivery of possession and on execution of the assignment on the back of the certificate covering it, or (2) any possessory lien now or hereafter provided by law or any lien acquired in any judicial proceeding. "Instrument" shall mean any security agreement, as defined in section 28:9-105(h) of the District of Columbia Code, creating such lien. "Lien information" shall mean the amount, kind, date of lien, name and address of holder or secured party as defined in section 28:9-105(i) of the District of Columbia Code, and recorder's record number, if any. SEC. 6. (b) The second sentence of section 2 of the Act approved July 2, 1940 (chapter 527, 54 Stat. 736; D.C. Code, 1961 ed., sec. 40-702), is amended to read as follows: "The filing provisions of Article 9 of Subtitle I of Title 28 of the District of Columbia Code do not apply to liens recorded as herein provided, and a lien has no greater validity or effect during the time a certificate is outstanding for the motor vehicle or trailer covered thereby by reason of the fact that the lien has been filed in accordance with that article.". SEC. 7. The first sentence of section 4 of the Act approved July 2, 1940 (chapter 527, 54 Stat. 737; D.C. Code, 1961 ed., sec. 40-704), as amended by section 1 of the Act approved June 4, 1952 (chapter 365, 66 Stat. 100), is amended by striking out at the end thereof the following words: "and acknowledged by the owner in the manner provided by law for deeds of real estate". SEC. 8. The first sentence of section 8 of the Act approved July 2, 1940 (chapter 527, 54 Stat. 738; D.C. Code, 1961 ed., sec. 40-708), as amended by section 2 of the Act approved June 4, 1952 (chapter 365, 66 Stat. 100), is amended by striking out at the end thereof the following words: "and acknowledged by him in the manner provided by law for deeds of real estate". SEC. 9. (a) Paragraph (9) of section 1 of the Act approved April 22, 1960 (Pub. L. 86-431, 74 Stat. 69; D.C. Code, 1961 ed., sec. 40-901(9)), is amended to read as follows: "(9) 'Retail installment contract' means a contract entered into in the District or entered into by a seller licensed or required to be licensed by the District evidencing a retail installment transaction pursuant to which the title to or a lien on, or security or a security interest in, the motor vehicle, which is the subject matter of the transaction, is retained or taken to secure, in whole or in part, the retail buyer's obligations. The term includes a security agreement, chattel mortgage, conditional sale contract and a contract in the form of a bailment or a lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the value of the motor vehicle sold and it is agreed that the bailee or lessee is bound to become, or, for no further or a merely nominal consideration, has the option of becoming, the owner of the motor vehicle upon full compliance with the terms of the bailment or lease." (b) Section 1 of the Act approved April 22, 1960 (Pub. L. 86-431, 74 Stat. 69; D.C. Code, 1961 ed., sec. 40-901), is further amended by adding at the end thereof the following paragraph: "(11) 'Security interest' and 'secured party' have the same meanings as those given to the terms in sections 28:1-201 and 28:9–105(i) of the District of Columbia Code.". SEC. 10. Section 546-C of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1275; D.C. Code, 1961 ed., sec. 42-102), as so renumbered and amended by section 2 of the Act approved June 5, 1952 (chapter 370, 66 Stat. 126), is amended to read as follows: "SEC. 546-C. It is not necessary for the Recorder of Deeds to spread upon the records of his office the financing statements or other papers filed pursuant to Part 4 of Article 9 of Subtitle I of Title 28 of the District of Columbia Code, but they shall be indexed and, except as hereinafter provided, shall be kept on file and shall be open to inspection by the public, and shall have the same force and legal effect as if they were actually recorded in the books of his office.". SEC. 11. Section 546-D of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1189), as added by section 3 of the Act approved June 5, 1952 (chapter 370, 66 Stat. 126; D.C. Code, 1961 ed., sec. 42-104), and amended by section 1 of the Act approved June 18, 1953 (chapter 126, 67 Stat. 64), is amended to read as follows: "SEC. 546-D. (a) Unless the Recorder of Deeds has notice of an action pending relative thereto, he may remove from the files and destroy: "(1) an instrument filed in his office pursuant to the Act approved July 2, 1940 (chapter 527, 54 Stat. 736; D.C. Code, 1961 ed., secs. 40-701 to 40-712, 40-713 to 40-715), as amended, which has become void or lapsed, and which has been void or lapsed for one year or more, together with any affidavit, release, assignment, or continuation or termination statement relating thereto; "(2) a lapsed financing statement, a lapsed continuation statement, a statement of assignment or release relating to either, filed pursuant to Part 4 of Article 9 of Subtitle I of Title 28 of the District of Columbia Code, and any index of any of them, one year or more after lapse of the financing statement and every continuation statement relating thereto; and "(3) a termination statement filed pursuant to section 28:9-404 of the District of Columbia Code, and the index on which it is noted, one year or more after the filing of the termination statement. "(b) Subsection (a) of this section does not apply to a bill of sale, mortgage, deed of trust, conditional sale of, financing statement or security agreement covering, railroad rolling stock.". SEC. 12. Section 546-F of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1189), as added by section 3 of the Act approved June 5, 1952 (chapter 370, 66 Stat. 126; D.C. Code, 1961 ed., sec. 42106), is amended to read as follows: "SEC. 546-F. When a financing statement filed pursuant to Part 4 of Article 9 of Subtitle I of Title 28 of the District of Columbia Code has not lapsed, but all the collateral described in the financing statement has been released in the manner provided by Part 4 thereof, the Recorder of Deeds, may, after the expiration of three years from the date of the filing of the statement releasing all the collateral, destroy the financing statement and each continuation statement, statement of assignment, and statement of release relating thereto." SEC. 13. Section 546-G of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1189), as added by section 3 of the Act approved June 5, 1952 (chapter 370, 66 Stat. 126; D.C. Code, 1961 ed., sec. 42-107), is amended to read as follows: "SEC. 546-G. (a) Whoever intentionally makes a false statement with respect to a financing statement or other paper filed with the Recorder of Deeds pursuant to Part 4 of Article 9 of Subtitle I of Title 28 of the District of Columbia Code, or, after receipt of payment in full of the debt secured thereby, neglects or refuses, after written demand by the debtor, to send to the debtor a termination statement as provided by section 28:9-404 of the Code, shall be fined not more than $500 or imprisoned mot more than one year, or both. "(b) Prosecutions for violations of this subchapter shall be by the Corporation Counsel of the District of Columbia or any of his assistants, in the name of the District of Columbia.". "(c) As used in subsection (b) of this section 'Corporation Counsel' means the attorney for the District of Columbia, by whatever title the attorney may be designated by the Board of Commissioners of the District of Columbia.". SEC. 14. Section 548 of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1275; D.C. Code, 1961 ed., sec. 45-701), as amended, is amended to read as follows: "SEC. 548. (a) There shall be a Recorder of Deeds of the District, appointed by the Commissioners of the District of Columbia, who shall: "(1) except as provided by clause (2) of this subsection, record all deeds, contracts, and other instruments in writing affecting the title or ownership of real estate or personal property which have been duly acknowledged and certified; "(2) accept for filing, without acknowledgement or certification, all instruments, financing statements and other papers filed in his office pursuant to Part 4 of Article 9 of Subtitle I of Title 28 of the District of Columbia Code, and the Act of July 2, 1940 (chapter 527, 54 Stat. 736; D.C. Code, 1961 ed., secs. 40-701 to 40-712, 40-713 to 40-715). "(3) perform all requisite services connected with the duties prescribed in clauses (1) and (2) of this subsection; and "(4) have charge and custody of all the records, papers, and property appertaining to his office. "(b) A person may not be appointed Recorder of Deeds unless he has been a resident of the District of Columbia for at least five years next preceding his appointment. "(c) The performance, by the Recorder of Deeds and officers and employees in his office, of their duties and functions shall be subject to the supervision and control of the Commissioners of the District.". SEC. 15. (a) The following Act and parts of Acts, as amended, are hereby repealed: (1) Section 833a of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1189), as added by the Act approved April 28, 1904 (chapter 1808, 33 Stat. 554), and amended by the Act approved May 27, 1921 (chapter 13, 42 Stat. 9; D.C. Code, 1961 ed., sec. 22-1406). (2) Sections 1304 to 1493, inclusive, of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1395-1414), such sections being known as the Negotiable Instruments Law (D.C. Code, 1961 ed., Title 28, chapters 1 to 10, inclusive, except secs. 28-410, 28-714a, 28-920, 28-1004, 28-1008 to 28-1011, inclusive), except that, with respect to section 1389 of such code of laws for the District of Columbia (31 Stat. 1404; D.C. Code, 1961 ed., sec. 28-616), as amended, this repeal applies only to the first three sentences thereof. (3) Sections 1, 3, 6 and 7 of the Act approved April 5, 1939 (chapter 37, 53 Stat. 566, 567; D.C. Code, 1961 ed., secs. 28-1004, 28-1008 to 28-1010, inclusive). (4) Sections 1 to 5, inclusive, of the Act approved July 26, 1949 (chapter 365, 63 Stat. 481, 482; D.C. Code, 1961 ed., sec. 28-1011). (5) Sections 1 to 3, inclusive, of the Act approved August 7, 1950 (chapter 602, 64 Stat. 416, 417; D. C. Code, 1961 ed., sec. 28-714a). (6) Sections 1 to 76a, inclusive, and 79 of the Act approved March 17, 1937 (chapter 43, 50 Stat. 29-48; D.C. Code, 1961 ed., Title 28, chapter 11 to 16, inclusive), known as the Uniform Sales Act. (7) Sections 1 to 5, inclusive, of the Act approved April 28, 1904 (chapter 1809, 33 Stat. 555, 556; D.C. Code, 1961 ed., secs. 28-1701 to 28-1705, inclusive), relating to bulk sales. (8) Sections 1 to 49, inclusive, 56 to 59, inclusive, and 62 of the Act approved April 15, 1910 (chapter 167, 36 Stat. 301-311; D.C. Code, 1961 ed., Title 28, chapters 18, 19 (except sec. 28-1918 thereof), 20 and 22), constituting part of the Warehouse Receipts Act. (9) Section 1621 of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1432; D.C. Code, 1961 ed., sec. 281918). (10) Sections 1 to 26, inclusive, of the Act approved December 23, 1944 (chapter 729, 58 Stat. 927-932; D.C. Code, 1961 ed., secs. 28-2901, 28-2901 notes, 28-2902 to 28-2923, inclusive) constituting the Uniform Stock Transfer Act. (11) Sections 546-A and 546-B, as amended, of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1275), as so renumbered by the Act approved June 5, 1952, chapter 370, sec. 1, 66 Stat. 126 (D.C. Code, 1961 ed., secs. 42-101 and 42-103). (12) Section 546-E of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 311 Stat. 1189), as added by the Act approved June 5, 1952, chapter 370, sec. 3, 66 Stat. 126 (D.C. Code, 1961 ed., sec. 42-105). (13) Section 1119 of the code of law for the District of Columbia, approved March 3, 1901 (chapter 854, 31 Stat. 1368; D.C. Code, 1961 ed., sec. 12-304). (b) Except as provided by subsection (c) of this section, transactions validly entered into before the effective date specified in section 16 of this Act, and the rights, duties and interests flowing from them remain valid thereafter and may be terminated, completed, consummated or enforced as required or permitted by any statute or other law amended or repealed by this Act as though such repeal or amendment had not occurred. (c) The perfection of a security interest, as defined in section 28:1-201 of the District of Columbia Code, and however denominated in any law repealed by this Act, which was perfected when this Act takes effect by a filing, refiling or recording under a law repealed by this Act and requiring a further filing, refiling or recording to continue its perfection, continue until and will lapse on the date provided by the law so repealed for such further filing, refiling or recording, unless in such case, a continuation statement is filed, in the office of the Recorder of Deeds of the District, by the secured party within twelve months before the perfection of the security interest would otherwise lapse. Any such continuation statement must be signed by the secured party, identifying the original security agreement, however denominated, state the date of the last filing, refiling or recording and the filing number, and further state that the original security agreement is still effective. Except as herein specified, the provisions of section 28:9-403 (3) of the Code apply to such a continuation statement. (d) The following British statutes shall no longer have any force or effect in the District of Columbia: (1) 9 and 10 William III (1698), chapter 17, sec. 3 (D.C. Code, 1961 ed., sec. 28-410). (2) 3 and 4 Anne (1704), chapter 9, secs. 7 and 8 (D.C. Code, 1961 ed., sec. 28-920). SEC. 16. This Act shall become effective on January 1, 1965. Laws enacted after the approval of this Act, that are inconsistent with this Act, supersede it to the extent of the inconsistency. HOUSE COMMITTEE STAFF MEMORANDUM H.R. 5338 (by Mr. McMillan) to enact the Uniform Commercial Code for the District of Columbia, and for other purposes PURPOSE The primary purpose of this bill is the adoption for the District of Columbia of the Uniform Commercial Code (hereinafter referred to as UCC). UCC and its revisions were drafted under, and are still under, the joint sponsorship of the National Conference of Commissioners on Uniform State Laws and the American Law Institute. The work was begun in 1942 and continued without interruption until adoption of UCC by its two sponsors in 1952. In the same year it was approved by the House of Delegates of the American Bar Association. Since then, it has been officially revised on several occasions as a result of extensive study by various State commissions and committees and as a result of practical experience in States where UCC has been adopted. The sponsors of UCC established the permanent editorial board for the Uniform Commerical Code, in order to maintain a continual review of UCC and to recommend modifications in it from time to time. That editorial board, after studying the changes made in UCC by the first 18 adopting States, made a number of proposals known as the 1962 recommendations for amendment of the Uniform Commercial Code. The Uniform Commercial Code as included in section 1 of H.R. 5338 is, with relatively few changes, the same as the 1958 official text as modified by the 1962 recommendations. In other words, the proposed District of Columbia UCC is based on the latest official revision of UCC. As of the present time 23 States have adopted the UCC, as follows: It is reported that UCC is also still pending (as of March 13, 1963) before the legislatures of the following States: Section 1 of H.R. 5338 provides for the adoption of UCC as subtitle I of title 28 of the District of Columbia Code. The following is a brief review of the 10 articles of UCC: Article 1 This article deals with matters of general application, and contains general definitions and principles of interpretation. |