What constitutes filing--Refusal to accept for filing--Effect.

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57A-9-516. What constitutes filing--Refusal to accept for filing--Effect.

(a) Except as otherwise provided in subsection (b), communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.

(b) Filing does not occur with respect to a record that a filing office refuses to accept because:

(1)The record is not communicated by a method or medium of communication authorized by the filing office;

(2)An amount equal to or greater than the applicable filing fee is not tendered;

(3)The filing office is unable to index the record because:

(A)In the case of an initial financing statement, the record does not provide a name for the debtor;

(B)In the case of an amendment or information statement, the record:

(i)Does not identify the initial financing statement as required by §57A-9-512 or 57A-9-518, as applicable; or

(ii)Identifies an initial financing statement whose effectiveness has lapsed under §57A-9-515;

(C)In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's surname; or

(D)In the case of a record filed or recorded in the filing office described in §57A-9-501(a)(1), the record does not provide a sufficient description of the real property to which it relates;

(4)In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

(5)In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

(A)Provide a mailing address for the debtor; or

(B)Indicate whether the name provided as the name of the debtor is the name of an individual or an organization;

(6)In the case of an assignment reflected in an initial financing statement under §57A-9-514(a) or an amendment filed under §57A-9-514(b), the record does not provide a name and mailing address for the assignee; or

(7)In the case of a continuation statement, the record is not filed within the six-month period prescribed by §57A-9-515(d).

(c) For purposes of subsection (b):

(1)A record does not provide information if the filing office is unable to read or decipher the information; and

(2)A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by §57A-9-512, 57A-9-514, or 57A-9-518, is an initial financing statement.

(d) If a person presents a financing statement to the secretary of state for filing or recording, the secretary of state may refuse to accept or reject the financing statement for filing or recording if:

(1)The financing statement is not required or authorized to be filed or recorded with the secretary of state; or

(2)The secretary of state has reasonable cause to believe the financing statement is materially false or fraudulent.

(e) A financing statement that the secretary of state may refuse to accept or reject includes the following:

(1)Any financing statement that has the same name listed as both the debtor and the secured party;

(2)Any financing statement that identifies an individual debtor as a transmitting utility;

(3)Any financing statement that is determined to be intended for an improper purpose, such as hindering, harassing, or wrongfully interfering with another person or entity; or

(4)Any financing statement that is filed:

(A)Without the consent or participation of the:

(i)Obligor named in the financing statement;

(ii)The person named in the financing statement as debtor; and

(iii)The owner of collateral described or indicated in the financing statement; or

(B)By consent of an agent, a fiduciary, or another representative of the secured party of record without the consent of the secured party; or

(5)Any financing statement that is forged.

(f) The secretary of state does not have a duty to inspect, evaluate, or investigate a financing statement that is presented for filing or recording.

(g) A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in subsection (b), is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files.

Source: SL 2000, ch 231; SL 2012, ch 238, §14, eff. July 1, 2013; SL 2018, ch 276, §1.


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