BISMARCK, N.D. (5/3/13)--It's now official. North Dakota Gov. Jack Dalrymple has signed into state law a measure requiring lenders, including credit unions, to file liens and security interests electronically.
He signed House Bill 1136 Tuesday, as expected, said the Credit Union Association of the Dakotas (The Memo
May 1). North Dakota is the second state to mandate electronic lien filing, after Colorado.
CUAD supported the bill, which will make three changes:
Mandates the electronic filing of all lien documents into a Central Indexing System (CIS), which would allow for unlimited listing of collateral;
Reinstates SSN/FIN as a unique identifier used to search for debtor information, which were not accepted under national paper forms; and
Creates an upfront filing fee for the initial lien document and eliminates more than 35 fees and subscription charges, including a fee for searching and retrieving the document.
CUAD noted that the state hopes to have the CIS in operation by July 2014. Credit unions will be instrumental in developing it, said CUAD.