New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 33 - UNIFORM COMMERCIAL CODE RULES › Subchapter 5 - ACCEPTANCE AND REFUSAL OF UCC FILINGS › Section 17:33-5.2 - Reasons for refusal or removal of UCC filings

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				following reasons are the sole reasons for refusing to accept a UCC filing. As
				used in this section, the term "legible" is not limited to refer only to
				written expressions on paper. Legibility also encompasses electronic and other
				machine-readable transmissions and the requirement for such transmissions to be
				readily decipherable by DORES' information management system or staff.
1. Debtor name and address. An initial
				financing statement or an amendment that purports to add a debtor shall be
				refused if the filing fails to include a legible debtor name and address for a
				debtor. If the filing has more than one debtor name or address and some names
				or addresses are missing or illegible, DORES shall index the legible name and
				address pairings, and provide a notice to the remitter with the file number of
				the filing, identification of the debtor name(s) that was (were) indexed, and a
				statement that debtors with illegible or missing names or addresses were not
				indexed.
2. Additional debtor
				identification. An initial financing statement or an amendment adding one or
				more debtors shall be refused if the filing fails to identify whether each
				named debtor (or each added debtor in the case of such an amendment) is an
				individual or an organization, if the last name of each individual debtor is
				not identified or if, for each debtor identified as an organization, the filing
				does not include in legible form the organization's type, state of
				organization, or organization number (or a statement that it does not have
				one).
3. Secured party name and
				address. An initial financing statement, an amendment purporting to add a
				secured party of record, or an assignment, shall be refused if the filing fails
				to include a legible secured party's (or assignee in the case of an assignment)
				name and address. If the filing contains more than one secured party's (or
				assignee) name or address and some names or addresses are missing or illegible,
				DORES shall refuse the UCC document.
4. Lack of identification of initial
				financing statement. A UCC filing other than an initial financing statement
				shall be refused if the filing does not provide a file number of a financing
				statement in the UCC information management system that has not
				lapsed.
5. Timeliness of
				continuation. A continuation shall be refused if it is not received during the
				six-month period concluding on the day upon which the related financing
				statement would lapse.
i. The first day on
				which a continuation may be filed is the date of the month corresponding to the
				date upon which the financing statement would lapse, six months preceding the
				month in which the financing statement would lapse. If there is no such
				corresponding date during the sixth month preceding the month in which the
				financing statement would lapse, the first day on which a continuation may be
				filed is the last day of the sixth month preceding the month in which the
				financing statement would lapse, although filing by certain means may not be
				possible on such date if DORES is not open on such date.
ii. Last day permitted. The last day on which
				a continuation may be filed is the date upon which the financing statement
				lapses.
6. Fee. A filing
				shall be refused if it is accompanied by less than the full filing fee and if
				the filing request is for expedited service, is accompanied by less than the
				filing fee plus expedited fee.
7.
				Means of communication. UCC filings communicated to DORES by a means of
				communication not authorized by DORES for the communication of UCC filings will
				be refused.
8. Inability to read or
				decipher information. For purposes of
				N.J.S.A.
				12A:9-516.c, the filing office shall be
				considered to be unable to read or decipher information in a record, if:
i. The information in a written record is so
				faint, illegible, or otherwise unintelligible as to be unable to be read,
				copied, or otherwise processed by the filing office's equipment;
ii. If the filing office authorizes
				electronic transmission of records, and if the information in an electronically
				transmitted record is not in a format that can be read, copied, or otherwise
				processed by the filing office's equipment, or, for any other reason, cannot be
				read, copied, or otherwise processed by the filing office's equipment;
				or
iii. The record contains
				confusing, conflicting, or contradictory matter that gives rise to uncertainty,
				ambiguity, or lack of clarity as to the information in the record. Examples of
				such uncertainty, ambiguity, or lack of clarity include, but are not limited
				to, the following:
(1) If it appears to the
				filing office that a debtor named in a record is the same person as a secured
				party, the filing office shall be considered to be unable to decipher, and the
				record shall be considered not to provide, the name of the debtor or the name
				of the secured party;
(2) If it
				appears to the filing office that one portion of a record contains matter that
				indicates that a debtor is an organization and another portion of the record
				contains matter that indicates that the same debtor name is an individual, the
				filing office shall be considered to be unable to decipher, and the record
				shall be considered not to provide, the name of such debtor or an indication
				whether the debtor is an individual or an organization;
(3) If all or any part of an address in a
				record is qualified by words or phrases, such as "near," "about,"
				"approximately," "on or about," or the like, or if all or any part of an
				address in a record is contained in parenthesis, brackets, quotation marks, or
				the like, in a context that gives rise to uncertainty, ambiguity, or lack of
				clarity with respect to such address, the filing office shall be considered to
				be unable to decipher, and the record shall be considered not to provide, such
				address;
(4) If the record contains
				language that would render it meaningless for indexing purposes pursuant to the
				Uniform Commercial Code;
(5) If the
				record contains language that describes the collateral that is the subject of
				the filing in a confusing, unclear, or ambiguous manner; or
(6) If debtor is listed as an individual or
				an organization and classifies as a "transmitting utility," but the record does
				not contain any information indicating the debtor's name meets the definition
				of transmitting utility at
				N.J.S.A.
				12A:9-102(80).
9. The record is not
				required or authorized to be filed or recorded with the filing
				office.
10. The record, on its
				face, is being filed or recorded for a purpose outside the scope of this
				chapter.
11. The collateral
				described in the record is not within the scope of this chapter.
12. The filing office reasonably believes
				that the filer is attempting to file under a fictitious name with the intent to
				harass or defraud the person identified as the debtor.
13. The filing office reasonably believes
				that the record is materially false or fraudulent.