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Senate Bill 0501

Senate Bill 0501

ARCHIVE (2009)

Latest Information

DIGEST OF SB501 (Updated April 15, 2009 1:16 pm - DI 84)

Uniform commercial code revisions and economic development. Establishes the small business loan program administered by the Indiana finance authority (IFA). Establishes the small business loan fund. Authorizes the IFA to transfer money in the fund to financial institutions for deposit at reduced interest rates. Requires the financial institution to loan the money to approved small business development projects. Provides that the interest rate charged to the small business may not exceed the rate payable to the IFA plus 3%. Provides that the maximum amount that may be deposited for a particular small business development project is $1,000,000. Requires an annual report from the entity responsible for carrying out the duties of the Indiana economic development corporation concerning small business development. Transfers administration of the microenterprise partnership program from the Indiana economic development corporation to the Indiana housing and community development authority. Provides that a choice of laws clause in a construction or design contract is not enforceable unless the clause relates to certain provisions of the Uniform Commercial Code. Defines "record" and amends the definitions of "bank" for purposes of the Uniform Commercial Code (UCC). Amends the definition of "good faith" as it applies to certain provisions of the UCC. (Adopts the most recent revisions to the parts of the UCC concerning negotiable instruments and bank deposits and collections, including the following: (1) Provides that a person who has lost possession of an instrument but acquired ownership of the instrument directly or indirectly from a person entitled to enforce it may enforce the lost instrument. (2) Specifies the conditions under which payment of an instrument is discharged, if the instrument has been transferred to another person. (3) Adds provisions concerning telephonically generated checks, in which a consumer authorizes a check to be issued in his or her name over the telephone to pay an obligation. (4) Adds provisions concerning the rights of principal and secondary obligors. (5) Provides that the omission of certain disclosure statements in an instrument used in a consumer transaction is not a defense against enforcement of the instrument. Makes conforming amendments.
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