Financing statements: mortgages.

Assemblymember Macedo's legislation modifies California's Commercial Code requirements for recording debtor names in mortgage financing statements, offering lenders new flexibility in how they document individual borrowers' identities. Under current law, financing statements must use the exact name shown on a debtor's unexpired DMV-issued driver's license or identification card. The proposed change allows lenders to use either the individual's full legal name or their surname and first personal name, regardless of how the name appears on DMV documentation.

The amendment specifically addresses mortgage records that serve as fixture filings or cover as-extracted collateral or timber to be cut. These records maintain their effectiveness from the date of recording when they indicate the covered goods or accounts, describe the related real property, and meet other existing requirements for financing statements. The modified naming provision applies exclusively to these mortgage records and does not alter other aspects of secured transaction documentation.