Gov. Charles W. Turnbull announced Monday he has signed into law two of three bills amending the Uniform Commercial Code, and vetoed a third one. One attorney close to the issue said the veto was based on a misreading of the law and could hurt the territory's economy.
"I am encouraged by the governor's adoption of articles one through five," said Tom Bolt, "but I am disappointed in his veto of articles six, seven, eight and nine."
His veto "will jeopardize commerce in the territory. It will dry up the credit pool of money available to Virgin Islands businesses," said Bolt, chairman of the V.I. Uniform Law Commission.
Specifically, Article 9 concerns secured transactions between creditors and debtors, and 1999 revisions to the article by the National Conference of Commissioners on Uniform State Laws have already been enacted in at least 27 states, with an effective date of July 1, 2001. The conference has urged all U.S. states and territories to enact the revisions by that date lest "horrendous complications" ensue for that jurisdiction.
Turnbull said the vetoed bill contains provisions for nonjudicial enforcement of mortgages. He said the provisions could involve foreclosure without benefit of the judicial process, which would be a "significant departure from our existing system . . . affecting thousands of individuals."
But Bolt said the governor is mistaken. "Nothing could be further from the truth," he said. "Article 9 doesn't apply to real property, and that's why there is no way that you can construe that you would get nonjudicial real estate foreclosure from Article 9."
He added, "I am disheartened the governor would veto the most important sections of the bill because of this one misinterpretation." He said the commission had provided the governor with an "immense amount of information."
Paul L. Giminez, Turnbull's legal counsel, defended the veto, claiming the revised articles aren't merely an "update," as Bolt claimed, but change existing law.
According to the Uniform Law Commission, "Article 9 is … the crankshaft for the American economic engine. It is absolutely necessary to economic function in the U.S. Trillions of dollars of commercial and consumer credit are granted each year in secured transactions under Article 9, which provides a statutory framework that governs secured transactions — transactions which involve the granting of credit secured by personal property."
The 1999 Article 9 Revisions are also endorsed by the American Bar Association. According to the National Conference of Commissioners on Uniform State Laws, U.S. jurisdictions that fail to enact the revisions by July 1 may lose investment opportunities, see an increase in bankruptcies and a decrease in some state revenues, and its debtors may have higher transaction costs.
Giminez said the Uniform Commercial Code is the most complex legal document ever devised for the business community. It has been under constant revision for 30 years, he said, and lets the legal and business communities know what the rules are from jurisdiction to jurisdiction.
"In the ordinary course of reviewing changes in the UCC, the Legislature would have public hearings to examine the changes and the drafters of those changes could offer alternative provisions," Giminez said.
"I can understand why attorney Bolt would be perturbed," he said. "The vetoed section is one of three voluminous bills which provided for updating. However, this particular article had no appropriation in it, so it wasn't possible to line-item veto it."
Giminez said the measure also appears to be contradictory, in some instances providing for nonjudicial enforcement of mortgages.
He said the section in question provides that if a secured party meets certain requirements, it could proceed with nonjudicial enforcement of mortgages, including repossession of property. That is a situation, Giminez said, where a bank or other lending institution could be the secured party, and the secured property could include homes as well as businesses.
"It basically provides for the process to take place without going into a courtroom," Giminez said. The advantage of the process would be to save time and court costs.
He said in his reading of the article, it is not clear in some areas and needs to be examined more thoroughly. He said the governor was not being "anti-business" but was trying to protect "thousands of home and business owners."
Bolt said no further action is needed other than for the Legislature to override Turnbull's veto or re-introduce the bill and assign it to the Finance Committee.

Intended to bring Virgin Islands communications into the 21st century, the Technology Enterprise Act appears to have underscored a lack of it within the government.
Gov. Charles Turnbull vetoed the bill Monday, saying it contains unrelated provisions and chastising senators for adding amendments as riders. He cited one provision that he said would give legal recognition to common-law marriages in the territory.
But St. Thomas attorney Tom Bolt, who helped draft the measure, said there were no amendments to it and that the section Turnbull cited had nothing to do with sanctioning common-law marriage.
Staff at the Legislature's legal counsel's office confirmed that the bill was not amended, either in committee or on the floor.
Bolt said the impetus for the bill, a 180-page document modeled after similar legislation in other U.S. jurisdictions, came out of the Legislative-Executive Economic Summit of March 1999. Bolt said he worked with the St. Thomas-St. John Chamber of Commerce in drawing it up, and it was sponsored by six majority senators in the last Legislature.
It covers a wide range of technology-related issues, including automated office systems for the government, protections for Internet users against unsolicited materials, procedures for the use of electronic signatures and electronic contracts.
The statement from Government House announcing the veto said Turnbull "objected to attempts to redefine the term 'immediate family' as a spouse, whether by marriage or not. This is in conflict with existing law which provides that the Virgin Islands is not a common-law state and does not recognize common-law marriages. In addition, under Title 16 of the Virgin Islands Code, a spouse is either a husband or wife, not persons co-habiting together as spouses."
The only reference to 'immediate family' in the bill is in a section defining cyber-stalking. Stating that a plaintiff may charge stalking regarding the safety of an immediate family member, the bill says that "for purposes of this paragraph, 'immediate family' means a spouse, parent, child, any person related by consanguinity or affinity within the second degree, or any person who regularly resides, or within the six months preceding any portion of the pattern of conduct, regularly resided, in the plaintiff's household."
"And they are suggesting that that [language] would sanction common-law marriage?" said Bolt incredulously. "They don't understand law or something up there."
O'Bryan and governor's counsel Elmo Adams said another problem with the bill is that it had little public airing.
"This did not have any public hearing," Adams said. And O'Bryan said administration lawyers were not given a look at the proposal before it was passed.
Bolt said he could not remember whether he had sent a draft of the bill to the governor's legal counsel, but said he has frequent discussions with administrative attorneys regarding pending legislation.
And he noted that just last week in his State of the Territory Address Turnbull praised the Legislature for passing the bill.
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The Virgin Islands Territorial Emergency Management Agency is sponsoring an Earthquake Poster Contest. All private, elementary, middle and high school students are invited to participate.
Winning posters will be included in a new VITEMA calendar.
For further information call Mrs. Frett at 774-2244.

The Virgin Islands Carnival Committee needs judges for 2001 Carnvial events. Anyone interested in being a judge is asked to call the VICC office at 776-3112. Please leave your name and phone number.
In a press release the committee said that anyone who filled out an application in the past two years does not have to reapply, but should call the VICC office and leave their name.
Deadline for applications is Friday, February 16.

The Virgin Islands Carnival Committee announced today that applications are available for individuals or groups who wish to participate in the 2001 Food and Arts and Crafts Fair on Wednesday, April 25.
Applications can be picked up at the VICC office and must be returned by February 23.
First preference for designated spots in the arts and crafts section of the fair will go to individuals or groups displaying or selling original crafts.
The official name of this year's fair is "Beulah's Mixing Bowl" in honor of long-time fair participant Beulah Wheatley.
Call 776-3112 for more information.

The Department of Health is now accepting applications for an Emergency Medical Technician Basic Training on St. Thomas.
Interested persons may obtain an application at the EMS Office in the Roy L. Schneider Hospital Monday through Friday, between the hours of 8:30 a.m. and 4:30 p.m.
Applicants must:
Be 18 years old and not turn 37 before starting the training course.
Have a valid Virgin Islands driver's license.
Be able to lift and carry 100 pounds and carry it at least 25 feet.
Be able to provide evidence of good physical and mental health.
Be able to complete an entrance exam and personal interview.
Once you have secured your application, you may submit it to the Office of Emergency Medical Services at 48 Sugar Estate, St. Thomas, or you may drop it off at the Roy L. Schneider Hospital.
Applicants who are accepted will be required to submit a certificate of medical examination.

A high-ranking official in the administration of Gov. Charles W. Turnbull has tentatively indicated the V.I. government has gone from budget deficit to budget surplus.
Special Assistant to the Governor for Policy Initiatives James O'Bryan Jr. was asked on Tuesday about reports that directives had been issued by fiscal officers of the administration that the surplus revelation be kept secret.
"I can confirm that at the last cabinet meeting on St. John, Finance Commissioner Bernice Turnbull indicated that based on a preliminary review of the government's books, we ended with a $20 million surplus," he said. O'Bryan said that despite
the surplus, accounts must still be reconciled and there are still outstanding bills to be paid.
When asked why the information was not to be divulged publicly, O'Bryan said the administration did not want to mislead the public about the true financial situation of the government. Still, he said, "there is no question that the government finished the Fiscal Year 2001 in very good shape."
If indeed there is a budget surplus, it would mean that deficit spending has been reversed for the first time in many years.

A high-ranking official in the administration of Gov. Charles W. Turnbull has tentatively indicated the V.I. government has gone from budget deficit to budget surplus.
Special Assistant to the Governor for Policy Initiatives James O'Bryan Jr. was asked on Tuesday about reports that directives had been issued by fiscal officers of the administration that the surplus revelation be kept secret.
"I can confirm that at the last cabinet meeting on St. John, Finance Commissioner Bernice Turnbull indicated that based on a preliminary review of the government's books, we ended with a $20 million surplus," he said. O'Bryan said that despite
the surplus, accounts must still be reconciled and there are still outstanding bills to be paid.
When asked why the information was not to be divulged publicly, O'Bryan said the administration did not want to mislead the public about the true financial situation of the government. Still, he said, "there is no question that the government finished the Fiscal Year 2001 in very good shape."
If indeed there is a budget surplus, it would mean that deficit spending has been reversed for the first time in many years.

New information has surfaced in the probe into the murder of Ernestine Vanterpool. Law enforcement sources have confirmed that Vanterpool, 51, may have been shot as early as Friday and attempted to treat the wound herself.
Persons involved in a beach cleanup at Lindqvist Beach found Vanterpool dead in her bullet-riddled car Saturday.
An autopsy revealed that a single bullet entered her elbow, exited the inner arm and lodged in her abdomen.
Deputy Police Chief Theodore Carty said Monday that police believe Vanterpool had been living in the car, which held a television, video cassette recorder and clothing. He said she also had a history of mental illness.
Persons close to her family who spoke Tuesday on the condition of anonymity said relatives noticed on Friday evening that Vanterpool was bleeding but she refused medical assistance even after the family called an ambulance. Vanterpool had changed her clothes, making the gunshot injury not readily visible.
On Saturday, her family believes she set out in her vehicle and ended up on Lindqvist Beach where she died.
The source said that Vanterpool's car was shot up to five times. As of Tuesday, police had no motive for the shooting, no murder weapon and no suspects.
Vanterpool's death is the second on St. Thomas and fourth in the territory this year.
Carty said Tuesday that the case has been reclassified as a murder. He urged anyone with information to contact police at 774-4050, 774-2196, the emergency number 911 or the confidential crime line at 777-8711.

Two St. Thomas teenagers were hospitalized Tuesday afternoon after unrelated fights near Charlotte Amalie High School and Addelita Cancryn Junior High School. The perpetrators of both alleged crimes remained at large.
Police spokeswoman Sgt. Annette Raimer said police officers were called to the CAHS campus after an altercation escalated into a stabbing. The victim was seen running toward the Sugar Estate Post Office, bleeding from a stab wound. Raimer said the victim was taken to Roy Schneider Hospital, where officers were trying to determine the motive for the stabbing.
Raimer said a suspect fled towards the Paul M. Pearson Garden public housing community. The suspect was dressed in a white shirt, blue jeans and sneakers at the time of the knifing.
Within minutes of the stabbing, officers were summoned to Cancryn Junior High School near Frenchtown where one student reportedly attacked another with a baseball bat.
Raimer said she did not know what triggered the attack. She said the victim was transported by ambulance to Schneider hospital for treatment of a laceration to the head; the suspect, who she said was another Cancryn student, remained at large Tuesday afternoon.
Raimer appealed to anyone with additional information to call the VIPD Juvenile Bureau at 774-5880 or the emergency number 911.