STAND. COM. REP. NO. 526-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1938
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred H.B. No.
1938 entitled: 

     "A BILL FOR AN ACT RELATING TO REVISED UNIFORM COMMERCIAL
     CODE ARTICLE 9--SECURED TRANSACTIONS,"

beg leave to report as follows:

     The purpose of this measure is to amend Hawaii Revised
Statutes Chapter 490 to incorporate a revised Article 9 (secured
transactions) of the Uniform Commercial Code.

     Testimony in support of this measure was submitted by the
Hawaii Bankers Association, Hawaii's Commission to Promote
Uniform Legislation, and the National Conference of Commissioners
on Uniform State Laws.

     Testimony commenting on this measure was submitted by the
Department of Budget and Finance.

     Your Committees find that the Uniform Commercial Code,
Article 9 - Secured Transactions, provides the rules governing a
"security interest" in the context of a debtor/creditor
relationship.  The revised Article 9 addresses issues such as:
technology, new collateral, certainty of perfection, new liens,
and consumer impact.  In addition, the revisions address and
clear up ambiguities in the interpretation of Article 9 rules
that have occurred over time.  


 
 
                                 STAND. COM. REP. NO. 526-00
                                 Page 2

 
     Your Committees have made technical, nonsubstantive
amendments for purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of H.B. No.
1938 as amended herein, and recommend that it pass Second Reading
in the form attached hereto as H.B. No. 1938, H.D. 1, and be
placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Judiciary and Hawaiian
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Chair            RON MENOR, Chair