2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 5 - Filing › Sub Part 1 - Filing Office; Contents and Effectiveness of Financing Statement › 9-518 - Claim Concerning Inaccurate or Wrongfully Filed Record

Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record.
(a) Correction  statement.  A  person  may file in the filing office a
correction statement with respect to a record indexed  there  under  the
person's  name  if  the person believes that the record is inaccurate or
was wrongfully filed.
(b) Sufficiency of correction statement. A correction statement must:
(1) identify the record to which it relates by:
(A) the  file  number  assigned  to  the  initial   financing
statement to which the record relates; and
(B) if  the correction statement relates to a record filed in
a filing office described in  Section  9--501(a)(1),  the
date  and  time  that the initial financing statement was
filed and the information specified in Section 9--502(b);
(2) indicate that it is a correction statement; and
(3) provide the basis for the person's belief that the record  is
inaccurate  and  indicate  the  manner  in  which  the person
believes the record should be amended to cure any  inaccuracy
or  provide the basis for the person's belief that the record
was wrongfully filed.
(c) Record not affected by  correction  statement.  The  filing  of  a
correction  statement  does  not  affect the effectiveness of an initial
financing statement or other filed record.
(d) Special proceeding to redact or expunge a falsely filed or amended
financing statement. (1) Provided he or she is an employee of the  state
or a political subdivision thereof, a person identified as a debtor in a
financing  statement  filed pursuant to this subpart may bring a special
proceeding against the named filer of such statement  or  any  amendment
thereof  to  invalidate  the  filing  or  amendment  thereof  where such
statement was falsely filed or amended; except that an attorney  who  is
not an employee of the state or a political subdivision thereof may also
bring  a  special proceeding hereunder where he or she represents or has
represented the respondent therein in a  criminal  court.  Such  special
proceeding  shall  be governed by article four of the civil practice law
and rules, and shall be commenced in the supreme court of Albany county,
the county of the petitioner's residence or a county within the judicial
district in which any property covered by  the  financing  statement  is
located. No fee pursuant to article eighty of the civil practice law and
rules shall be collected in such special proceeding.
(2) The petition in a special proceeding hereunder shall plead that:
(A)  the  financing  statement  filed  or  amended  by  the respondent
pursuant to section 9--509 was falsely filed  or  amended  to  retaliate
for:  (i)  the performance of the petitioner's official duties in his or
her capacity as an employee of the  state  or  a  political  subdivision
thereof,  or  (ii)  in  the  case  of a special proceeding brought by an
attorney who is not an employee of the state or a political  subdivision
thereof,  to retaliate for the performance of the petitioner's duties in
his or her capacity as an attorney for  the  respondent  in  a  criminal
court; and
(B)  such  financing  statement  does  not  relate to an interest in a
consumer-goods transaction,  a  commercial  transaction,  or  any  other
actual transaction between the petitioner and the respondent; and
(C) the collateral covered in such financing statement is the property
of the petitioner; and
(D)  prompt  redaction  or  invalidation of the financing statement is
necessary to avert or mitigate prejudice to the petitioner.
(3) If the court makes a  written  finding  that  the  allegations  in
paragraph  two of this subsection are established, the court shall order
the expungement of such statement or its redaction in the public records

in the office in which the financing statement is filed, as appropriate,
and may grant any additional relief authorized  by  section  9--625.  In
such  case,  the  court shall cause a copy of its order to be filed with
the  secretary  of  state or other appropriate filing office pursuant to
this chapter. Upon a finding  that  the  respondent  has  engaged  in  a
repeated  pattern  of  false filings as found under this subsection, the
court also may enjoin the respondent from filing or amending any further
financing statement pursuant to this article without leave of the court.
If the respondent is incarcerated at the time the court issues an  order
containing  such  an  injunction,  the court shall cause the head of the
correctional facility in which the respondent is incarcerated to receive
a copy of such determination. The head of such a facility shall cause  a
copy of such order to be provided to the respondent. In any instances of
the  issuance  of such an injunction where the respondent has defaulted,
the court shall direct service of such injunction upon the respondent.