Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=SB426%20SUB2.htm&yr=2013&sesstype=RS&i=426
Timestamp: 2018-04-21 08:18:44
Document Index: 323938808

Matched Legal Cases: ['§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46']

SB 426 Text
SB426 SUB2 Senate Bill 426 History
Senate Bill No. 426
reported April 1, 2013.]
A BILL to amend and reenact §46-9-510, §46-9-516 and §46-9-521 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §46-9-516a, all relating to amending the Uniform Commercial Code as to secured transactions; providing for the effectiveness of filed records; creating additional authority to refuse to accept a record for filing; creating circumstances under which a record filing is false; providing criminal penalties for filing or attempting to file a false record; providing civil penalties for filing or attempting to file a false record; setting forth an administrative procedure initiated by the Secretary of State or a person identified as a debtor on a record; requiring party to an adverse administrative decision by the Secretary of State to file action in Kanawha County Circuit Court if the party wishes to have the Secretary of State’s decision reversed; exempting the filing office and its employees from liability; exempting filings by a regulated financial institution or its representatives from certain provisions; and clarifying the applicability of provisions to records filed prior to the effective date of this article.
That §46-9-510, §46-9-516 and §46-9-521 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto a new section, designated §46-9-516a, all to read as follows:
(a) Filed record effective if authorized. – A filed record is effective only to the extent that it was filed by a person that may file it under section 9-509. section five hundred nine of this article.
(c) Continuation statement not timely filed. – A continuation statement that is not filed within the six-month period prescribed by section 9-515(d) subsection (d), section five hundred fifteen of this article is ineffective.
(d) A filed record ceases to be effective if the filing office terminates the record pursuant to section five hundred sixteen-a of this article.
(i) Does not identify the initial financing statement as required by 9-512 or 9-518, section five hundred twelve or section five hundred eighteen of this article, as applicable; or
(ii) Identifies an initial financing statement whose effectiveness has lapsed under section 9-515; five hundred fifteen of this article; or
(iii) Identifies an initial financing statement which was terminated pursuant to section five hundred sixteen-a of this article;
(D) In the case of a record filed or recorded in the filing office described in section 9-501(a)(1), subdivision (1), subsection (a), section five hundred one of this article, the record does not provide a sufficient description of the real property to which it relates; or
(E) In the case of a record submitted to the filing office described in subdivision (1), subsection (a), section five hundred one of this article, the filing office has reason to believe, from information contained in the record or from the person that communicated the record to the office, that:
(i) If the record indicates that the debtor is a transmitting utility, the debtor does not meet the definition of a transmitting utility as described in subdivision (81), subsection (a), section one hundred two of this article;
(ii) If the record indicates that the transaction relating to the record is a manufactured home transaction, the transaction does not meet the definition of a manufactured home transaction as described in subdivision (54), subsection (a), section one hundred two of this article; or
(iii) If the record indicates that the transaction relating to the record is a public finance transaction, the transaction does not meet the definition of a public finance transaction as described in subdivision (70), subsection (a), section one hundred two of this article;
(4) In the case of an initial financing statement or an amendment, if the filing office believes in good faith that the record was communicated to the filing office in violation of section five hundred sixteen-a of this article;
(6) (7) In the case of an assignment reflected in an initial financing statement under section 9-514(a) subsection (a), section five hundred fourteen of this article or an amendment filed under section 9-514(b), subsection (b), section five hundred fourteen of this article, the record does not provide a name and mailing address for the assignee; or
(7) (8) In the case of a continuation statement, the record is not filed within the six-month period prescribed by section 9-515(d). subsection (d), section five hundred fifteen of this article.
(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 section 9-512, 9-514 or 9-518, sections five hundred twelve, five hundred fourteen or five hundred eighteen of this article, is an initial financing statement.
(1) Is not authorized or permitted under sections five hundred nine, seven hundred eight or eight hundred eight of this article; and
(g) The Secretary of State shall promptly communicate to the secured party of record a notice of the termination of a record under subsection (e) of this section. A secured party of record who believes in good faith that the record was not communicated to the filing office in violation of subsection (a) of this section may file an action to require that the record be reinstated by the filing office. A person who communicated a record to the filing office that the filing office rejected in reliance on subdivision (4), subsection (b), section five hundred sixteen of this article, who believes in good faith that the record was not communicated to the filing office in violation of subdivision (4), subsection (b), section five hundred sixteen of this article, may file an action to require that the record be accepted by the filing office. The jurisdiction for the action is the circuit court of Kanawha County.
(h) If the court determines that a record terminated under this section or rejected in reliance on subdivision (4), subsection (b), section five hundred sixteen of this article should be reinstated or accepted, the court shall provide a copy of an order to that effect to the Secretary of State. On receipt of an order reinstating a terminated record, the Secretary of State shall refile the record along with a notice indicating that the record was refiled pursuant to this section and its initial filing date. On receipt of an order requiring that a rejected record be accepted, the Secretary of State shall promptly file the record along with a notice indicating that the record was filed pursuant to this section and the date on which it was communicated for filing. A rejected record that is filed pursuant to an order of a court shall have the effect described in subsection (d), section five hundred sixteen of this article for a record the filing office refuses to accept for a reason other than one set forth in subsection (b), section five hundred sixteen of this article.
(i) A terminated record that is refiled under subsection (h) of this section is effective as a filed record from the initial filing date. If the period of effectiveness of a refiled record would have lapsed during the period of termination, the secured party may file a continuation statement within thirty days after the record is refiled and the continuation statement has the same effect as if it had been filed during the six-month period described in subsection (d), section five hundred fifteen of this article. A refiled record is considered never to have been ineffective against all persons and for all purposes except that it is not effective as against a purchaser of the collateral that gave value in reasonable reliance on the absence of the record from the files.
(a) Initial financing statement. – A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in section 9-516(b): subsection (b), section five hundred sixteen of this article: Provided, That the written record must be on the most recent revision of the appropriate form as approved by the International Association of Commercial Administrators.
(b) Amended financing statement. – A filing office that accepts written records may not refuse to accept an amended written record in the following form and format except for a reason set forth in section 9-516(b): subsection (b), section five hundred sixteen of this article: Provided, That the written record must be on the most recent revision of the appropriate form as approved by the International Association of Commercial Administrators.
(NOTE: The purpose of this bill relates to filings under the Uniform Commercial Code as to secured transactions. The bill clarifies false or fraudulent filings, provides civil and criminal penalties for such filings and provides administrative and legal recourse for such filings.
§46-9-516a is new; therefore, strike-throughs and underscoring have been omitted.