In re Save-On-Carpets of Arizona, Inc., 545 F.2d 1239 (9th Cir. 1976).
Two key terms pervade the law of chattel security: attachment and perfection. The attachment of a security interest between the secured party and the debtor must be perfected if the secured party is to be protected against third parties. There are three ways in which a security interest may be perfected under Article 9 of the Uniform Commercial Code. The perfection of a security interest may be accomplished through filing a financing statement, possession of the collateral by the secured party, or, in some cases, merely by attachment. Most security interests may be perfected either by filing or possession depending on the type of collateral involved.
When a security interest is perfected by filing notice, the document placed on record is referred to as a financing statement. Filing a financing statement under Article 9 is the more common and perhaps the most important method of perfecting a security interest. The filing requirements set forth in section 9-402(1) of the Code are to a large extent technical and often escape critical notice as simply matters of accessory detail. Such issues of technical formality are frequently the essence of chattel security law, however, and they are ignored at one's peril.
Under the 1972 revision of Article 9 of the Code, the financing statement must include: the names of the debtor and secured party, the signature of the debtor, the address of the secured party, and a description of the items of collateral. Prior to the 1972 revision, the signature of the secured party was also required, although there is no clear reason why. One of the principal draftsmen of Article 9, Grant Gilmore, admits that there is no substantial reason why the creditor must sign. The 1972 revision of Article 9 adopted this view, requiring the signature of only the debtor for both the security agreement and the financing statement.
In re Save-On-Carpets of Arizona, Inc.10 is a recent decision focusing on the issue of what constitutes a "signing" under section 9-402(1) of the Code as adopted by Arizona.
O'Donnell, Garry W.
"Secured Transactions: Financing Statement Signature Requirements,"
University of Dayton Law Review: Vol. 3:
1, Article 11.
Available at: https://ecommons.udayton.edu/udlr/vol3/iss1/11