The standard alarm contracts  have been updated and will have the copyright date of 1/02. There are two significant changes to this latest revision.  

  There is now a provision that provides as follows:

The balance of payments for the term of this agreement are due upon execution of this agreement. For the convenience of the parties and so long as there is no default in payments, Lessee may make the payments as provided in 3(b).

This provision will be found in any contract that calls for future periodic payments.

   The second major change is:

26. SECURITY INTEREST/COLLATERAL: To secure Lessee's obligations under this agreement Lessee grants Lessor a security interest in its inventory, furnishings, equipment, receivables, cash and other personalty, tangible and intangible, located at the location where the  security equipment is to be installed and Lessor is authorized to file a financing statement.

   This provision will be found in all of the contracts.

In addition to the contracts I will also offer the UCC-1 Financing Statement which you will use to file with the recording office in the state where the business entity is organized. (In NY its the Dept. of State.) UCCs are now to be filed in the state recording office and no longer locally. Furthermore, the UCC-1 Financing Statement is a new uniform form. Old forms are not accepted, and the recording office will retain your filing fee even though it rejects the UCC-1 for filing.

Filling out the UCC-1 form will not be easy and will require information that you typically don't get when you sign up a subscriber. The signature area on the standard contract has been changed to elicit this information, but you will have to understand what is called for and then obtain the correct information in order to fill out and file the UCC-1. This information requires (1) the type of organization - i.e. corporation, partnership, DBA; (2) the tax id number, social security or EIN number; (3) the state of organization [which is not necessarily where the business is located]; and (4) the identification number given by the state, if it gives one (NY does not give a number). The standard contract form will have a place for this information, and I suggest that you insist on getting this information when the contract is signed.

The security interest is likely to be objectionable to your subscriber for many reasons that I won't go into now, but will address in the near future. While there may be some benefit to getting the security interest it is by no means essential, and you should agree to delete the provision if questioned about it.

I will be offering a copy of the UCC-1 with the contracts, and until the form and charge is posted on my web site there will be no charge. Once it's posted and the charge established it will no longer be free, though you can certainly obtain it from other sources as it is a uniform legal form.

The price of the contracts are as posted on the web site, or as advertised. Upgrades will have a special temporary charge as follows: If you purchased your contract after June 1, 2001, there is no charge for the upgrade. If after January 1, 2001, the charge will be $50 per contract. If after January 1, 2000, the charge is $100 per contract.

Prior to January 1, 2000, full price as published. The special temporary charge will expire January 30, 2002, and upgrades will then be full price due to the nature of the changes.