Opinion ID: 2064767
Heading Depth: 1
Heading Rank: 2

Heading: Sufficiency of the Financing Statement

Text: With exceptions not applicable here, a financing statement must be filed to perfect all security interests. § 9-302, U.C.C. An unperfected security interest is subordinate to, among others, a lien creditor, which term includes a trustee in bankruptcy from the date of the filing of the petition. § 9-301(3), U.C.C. The requisites of a sufficient financing statement are prescribed by section 9-402, U.C.C. Insofar as pertinent, we quote that section: (1) A financing statement is sufficient if it is signed by the debtor and the secured party, gives an address of the secured party from which information concerning the security interest may be obtained, gives a mailing address of the debtor and contains a statement indicating the types, or describing the items, of collateral.. . . A copy of the security agreement is sufficient as a financing statement if it contains the above information and is signed by both parties. . . . (5) A financing statement substantially complying with the requirements of this section is effective even though it contains minor errors which are not seriously misleading. Section 9-403(4), U.C.C., provides: A filing officer shall mark each statement with a consecutive file number and with the date and hour of filing and shall hold the statement for public inspection. In addition the filing officer shall index the statements according to the name of the debtor and shall note in the index the file number and the address of the debtor given in the statement. Section 9-105(1)(d), U.C.C., defines debtor as the person who owes payment or other performance of the obligation secured, whether or not he owns or has rights in the collateral, and includes the seller of accounts, contract rights or chattel paper. Where the debtor and the owner of the collateral are not the same person, the term `debtor' means the owner of the collateral in any provision of the article dealing with the collateral, the obligor in any provision dealing with the obligation, and may include both where the context so requires. It is undisputed that Verlan J. Rumbaugh was the owner of the collateral covered by the security agreement. Section 9-105(1)(d), U.C.C., provides that in any provision of the article dealing with collateral, debtor means the owner of the collateral. One of the requirements for a sufficient financing statement is that it be signed by the debtor. § 9-402(1), U.C.C. The few cases which have considered the necessity of signature of the debtor have not held the omission of the signature is a minor error. In re Industro Transistor Corp., 14 U.C.C. Rep. 522 (Bankruptcy Court, E.D.N.Y.); Beneficial Finance Co. v. Kurland Cadillac-Olds., 57 Misc.2d 806, 293 N.Y.S.2d 647; Provident Finance Co. v. Beneficial Finance Co., 36 N.C.App. 401, 245 S.E.2d 510; In re Murray, 2 U.C.C.Rep. 667 (Bankruptcy Court, D.Ore.). See, also, White & Summers, Uniform Commercial Code, p. 835. It is not for this court to write the signing requirement of the code out of the statute. We hold the filing of a financing statement which is not signed by the owner of the collateral described therein is insufficient to perfect the security interest. In the light of this holding, it is unnecessary for us to consider or rule upon the trustee's other criticisms of the financing statement.