Bill Text: CA AB224 | 2009-2010 | Regular Session | Chaptered
Bill Title: Business.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 315, Statutes of 2009. [AB224 Detail]
Download: California-2009-AB224-Chaptered.html
BILL NUMBER: AB 224 CHAPTERED
BILL TEXT
CHAPTER 315
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 4, 2009
PASSED THE ASSEMBLY SEPTEMBER 11, 2009
AMENDED IN SENATE SEPTEMBER 1, 2009
AMENDED IN SENATE AUGUST 25, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JUNE 2, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
AMENDED IN ASSEMBLY MARCH 25, 2009
INTRODUCED BY Assembly Member Portantino
FEBRUARY 4, 2009
An act to amend Section 9321 of the Commercial Code, relating to
business, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 224, Portantino. Business.
Until January 1, 2010, existing law provides that a licensee in
ordinary course of business, as defined, takes its rights under a
nonexclusive license free of a security interest in the intangible
created by the licensor and takes its leasehold interest free of a
security interest in the goods created by the lessor, as specified.
This bill would extend the operation of that provision to January
1, 2013.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 9321 of the Commercial Code, as amended by
Section 15 of Chapter 567 of the Statutes of 2006, is amended to
read:
9321. (a) In this section, "licensee in ordinary course of
business" means a person that becomes a licensee of a general
intangible in good faith, without knowledge that the license violates
the rights of another person in the general intangible, and in the
ordinary course from a person in the business of licensing general
intangibles of that kind. A person becomes a licensee in the ordinary
course if the license to the person comports with the usual or
customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
(b) A licensee in ordinary course of business takes its rights
under a nonexclusive license free of a security interest in the
general intangible created by the licensor, even if the security
interest is perfected and the licensee knows of its existence.
(c) A lessee in ordinary course of business takes its leasehold
interest free of a security interest in the goods created by the
lessor, even if the security interest is perfected and the lessee
knows of its existence.
(d) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 2. Section 9321 of the Commercial Code, as amended by Section
16 of Chapter 567 of the Statutes of 2006, is amended to read:
9321. (a) A lessee in ordinary course of business takes its
leasehold interest free of a security interest in the goods created
by the lessor, even if the security interest is perfected and the
lessee knows of its existence.
(b) This section shall become operative on January 1, 2013.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to avoid the repeal of existing law that is necessary to
ensure economic stability and continuity for purposes of contract
interpretation, it is necessary that this act take effect
immediately.
