STATE OF NEBRASKA ♦ SECRETARY OF STATE’S OFFICE 1445 “K” ST. • STATE CAPITOL SUITE 1301 • LINCOLN, NE • 68509 BUSINESS SERVICES DIVISION Corporations Uniform Commercial Code Notary P.O. BOX 94608 (402) 471-4079 P.O. BOX 95104 (402) 471-4080 P.O. BOX 95104 (402) 471-2558 JOHN A. GALE DEBBIE PESTER Secretary of State Deputy Secretary of State June 17, 2005 MEMORANDUM TO: Agricultural Lenders RE: EFS filings and Social Security/Federal Tax ID numbers A question was recently brought to the Secretary of State’s Office by a lender regarding an audit of their bank records by the FDIC (Federal Deposit Insurance Corporation). As a result of the audit, an issue was raised about the requirement that Social Security/Federal Tax Identification numbers continue to be provided on EFS filings. According to Section 1324 of the Federal Food Security Act of 1985 Social Security/ Federal Tax Identification numbers are required on EFS filings for all debtors (individual and entity). Nebraska’s application for certification of our EFS system and compilation and distribution of our master lien listing included the federal requirement of use of Social Security/Federal Tax Identification numbers and was approved by the U.S. Department of Agriculture. Nebraska’s adaptation of the Federal Food Security Act became law after a Special Session of the Nebraska legislature in the fall of 1986. Current Nebraska Revised Statutes on EFS filings may be found in Chapter §52-1301 thru 13-22 and §52-1601 thru 1605. Although awareness concerning privacy and identity have increased, Section 1324 of the Federal Food Security Act has not been amended to remove requiring Social Security/Federal Tax Identification numbers on EFS filings. There has been discussion at the Federal level about possible substitution numbers in lieu of Social Security/Federal Tax Identification numbers; however, no definitive solution has been determined. Additionally, the FDIC and our office have come to the same conclusion regarding the disclosure of identification numbers on EFS filings. Part 332: Privacy of Consumer Financial Information in the FDIC regulations reads: “This part does not apply to information about companies or about individuals who obtain financial products or services for business, commercial or agricultural purposes.” In other words, a lender would not violate Part 332 by disclosing nonpublic personal information for farm borrowers in regards consumer credit. In summary, EFS filings must include Social Security/Federal Tax Identification numbers for all individual and/or entity debtors and these identification numbers will be entered into our EFS database until such time as: 1) Section 1324 of the Federal Food Security Act or corresponding Federal Rules and Regulations are amended, and 2) subsequent legislation is introduced and passed by the Nebraska Legislature to amend existing Nebraska law. American LegalNet, Inc. www.USCourtForms.com