New California UCC Law Puts Secured Parties on a 30-Day Clock

What AB 501 changes

California Assembly Bill 501, Chapter 505 of the 2026 Statutes, adds Commercial Code section 9513.1 effective January 1, 2027. The law creates a procedure under which a debtor or intended debtor may submit an affidavit, under penalty of perjury, asserting that a financing statement was unauthorized.

The filing office holds the proposed termination statement for 30 days and gives notice to each secured party of record. If no court order enjoining the termination is received during that period, the termination statement becomes effective immediately after the 30-day period.

The two deadlines are not interchangeable

The statute permits an action challenging the termination within 90 days after it becomes effective. That later remedy does not replace the initial 30-day window: only timely injunctive relief during the hold period prevents the termination from taking effect without an interruption.

Important scope limits

The statute contains exceptions, including financing statements filed by or on behalf of a public entity and certain qualifying financial institutions. Secured parties should confirm the final statutory text, their status, and the relevant filing-office notice rather than relying on a summary.

Operational checklist

• Keep the secured party's address and contact information current in the public record.

• Route filing-office notices to a monitored legal or collateral channel.

• Escalate a section 9513.1 notice immediately so counsel can evaluate injunctive relief.

• Preserve authorization, security-agreement, amendment, and filing evidence.

Sources

California Legislature — AB 501 bill history and text

Fennemore analysis of AB 501

This article is for general informational purposes only. It is not legal, tax, accounting, or investment advice, does not create an attorney-client relationship, and should not be relied on for any specific matter. Laws, court orders, deadlines, and procedural rules can change and may vary by jurisdiction. Consult qualified counsel and other professional advisers about the facts of your matter.