HB-5934, As Passed House, June 26, 2008
SUBSTITUTE FOR
HOUSE BILL NO. 5934
A bill to amend 1962 PA 174, entitled
"Uniform commercial code,"
by amending sections 9515, 9516, 9520, and 9521 (MCL 440.9515,
440.9516, 440.9520, and 440.9521), as added by 2000 PA 348, and
by adding section 9501a; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 9501a. (1) A person identified as a debtor in a
2 financing statement may file an affidavit with the filing office
3 in the form prescribed by the secretary of state under subsection
4 (2) stating that the financing statement is fraudulent. A person
5 shall not file an affidavit under this subsection with respect to
6 a financing statement filed by a regulated financial institution
7 or a representative of a regulated financial institution.
8 (2) The secretary of state shall adopt and make available a
1 form affidavit to be used to give notice of a fraudulent filing
2 statement under subsection (1).
3 (3) On receipt of an affidavit under subsection (1), a
4 filing office shall terminate the financing statement effective
5 on the date the affidavit is filed with the filing office.
6 (4) A filing office shall not charge a fee to file an
7 affidavit under this section. The filing office shall not return
8 any filing fee paid for filing the financing statement,
9 regardless of whether the financing statement is terminated under
10 this section.
11 (5) A filing office shall send notice of the termination of
12 a financing statement under subsection (3) to the filer of the
13 financing statement advising the filer that the financing
14 statement has been terminated. If the filer of the financing
15 statement believes in good faith that the statement was legally
16 filed and is not fraudulent, the filer may file an action to
17 reinstate the financing statement.
18 (6) An action under this section or section 9520 shall be
19 filed in the following court:
20 (a) If the financing statement names an employee or the
21 spouse of an employee of this state as a debtor, in the Ingham
22 county circuit court.
23 (b) If subdivision (a) does not apply, in the circuit court
24 for the county in which a person identified as a debtor in the
25 financing statement resides.
26 (7) If the court in an action under this section or section
27 9520 determines that the financing statement should be reinstated
1 or accepted, the court shall provide a copy of its order to the
2 filing office. On receipt of an order reinstating a financing
3 statement, the filing office shall file a record that identifies
4 by its file number the initial financing statement to which the
5 record relates and indicates that the financing statement has
6 been reinstated.
7 (8) On the filing of a record reinstating a financing
8 statement under subsection (7), the financing statement becomes
9 effective prospectively and shall be considered never to have
10 been ineffective as against a person that is not a purchaser of
11 the collateral for value. If a financing statement that is
12 reinstated would have lapsed during the period of termination,
13 the secured party may file a continuation statement within 30
14 days after the record reinstating the financing statement is
15 filed.
16 (9) If the court in an action under this section determines
17 that the financing statement is fraudulent, the filer of the
18 financing statement shall pay the costs and expenses incurred by
19 the person identified as a debtor in the financing statement in
20 the action.
21 (10) An individual who files a false or fraudulent affidavit
22 under subsection (1) is guilty of a felony punishable by
23 imprisonment for not more than 5 years or a $2,500.00 fine, or
24 both.
25 (11) As used in this section, "regulated financial
26 institution" means a financial institution subject to regulatory
27 oversight or examination by a state or federal agency. Regulated
1 financial institution includes a bank, savings bank, savings
2 association, building and loan association, credit union,
3 consumer finance company, industrial bank, industrial loan
4 company, insurance company, investment company, installment
5 seller, mortgage servicer, sales finance company, or leasing
6 company.
7 Sec. 9515. (1) Except as otherwise provided in subsections
8 (2), (5), (6), and (7), a filed financing statement is effective
9 for a period of 5 years after the date of filing.
10 (2) Except as otherwise provided in subsections (5), (6),
11 and (7), an initial financing statement filed in connection with
12 a manufactured-home transaction is effective for a period of 30
13 years after the date of filing if it indicates that it is filed
14 in connection with a manufactured-home transaction.
15 (3) The effectiveness of a filed financing statement lapses
16 on the expiration of the period of its effectiveness unless
17 before the lapse a continuation statement is filed pursuant to
18 subsection (4). Upon lapse, a financing statement ceases to be
19 effective and any security interest or agricultural lien that was
20 perfected by the financing statement becomes unperfected, unless
21 the security interest is perfected otherwise. If the security
22 interest or agricultural lien becomes unperfected upon lapse, it
23 is deemed never to have been perfected as against a purchaser of
24 the collateral for value.
25 (4) A continuation statement may be filed only within 6
26 months before the expiration of the 5-year period specified in
27 subsection (1) or the 30-year period specified in subsection (2),
1 whichever is applicable.
2 (5) Except as otherwise provided in section 9510, upon
3 timely filing of a continuation statement, the effectiveness of
4 the initial financing statement continues for a period of 5 years
5 commencing on the day on which the financing statement would have
6 become ineffective in the absence of the filing. Upon the
7 expiration of the 5-year period, the financing statement lapses
8 in the same manner as provided in subsection (3), unless, before
9 the lapse, another continuation statement is filed pursuant to
10 subsection (4). Succeeding continuation statements may be filed
11 in the same manner to continue the effectiveness of the initial
12 financing statement.
13 (6) If a debtor is an organization identified as a
14 transmitting utility and a filed initial financing statement so
15 indicates, the financing statement is effective until a
16 termination statement is filed. A financing statement that is
17 filed before the effective date of the amendatory act that added
18 this sentence is effective for a period of 5 years after the date
19 of filing and shall not be continued under this section if the
20 financing statement indicates either of the following:
21 (a) That the debtor is an individual purporting to be a
22 transmitting utility.
23 (b) That the debtor is an individual showing his or her name
24 as an organization and purporting to be a transmitting utility.
25 (7) A record of a mortgage that is effective as a financing
26 statement filed as a fixture filing under section 9502(3) remains
27 effective as a financing statement filed as a fixture filing
1 until the mortgage is released or satisfied of record or its
2 effectiveness otherwise terminates as to the real property.
3 Sec. 9516. (1) Except as otherwise provided in subsection
4 (2), communication of a record to a filing office and tender of
5 the filing fee or acceptance of the record by the filing office
6 constitutes filing.
7 (2) Filing does not occur with respect to a record that a
8 filing office refuses to accept because of 1 or more of the
9 following:
10 (a) The record is not communicated by a method or medium of
11 communication authorized by the filing office.
12 (b) An amount equal to or greater than the applicable filing
13 fee is not tendered.
14 (c) The filing office is unable to index the record because
15 of 1 or more of the following:
16 (i) In the case of an initial financing statement, the record
17 does not provide a name for the debtor.
18 (ii) In the case of an amendment or correction statement, the
19 record does not identify the initial financing statement as
20 required by section 9512 or 9518, as applicable, or identifies an
21 initial financing statement whose effectiveness has lapsed under
22 section 9515.
23 (iii) In the case of an initial financing statement that
24 provides the name of a debtor identified as an individual or an
25 amendment that provides a name of a debtor identified as an
26 individual that was not previously provided in the financing
27 statement to which the record relates, the record does not
1 identify the debtor's last name.
2 (iv) In the case of a record filed or recorded in the filing
3 office described in section 9501(1)(a), the record does not
4 provide a sufficient description of the real property to which it
5 relates.
6 (d) In the case of an initial financing statement or an
7 amendment that adds a secured party of record, the record does
8 not provide a name and mailing address for the secured party of
9 record.
10 (e) In the case of an initial financing statement or an
11 amendment that provides a name of a debtor which was not
12 previously provided in the financing statement to which the
13 amendment relates, the record does not provide or indicate 1 or
14 more of the following:
15 (i) Provide a mailing address for the debtor.
16 (ii) Indicate whether the debtor is an individual or an
17 organization.
18 (iii) If the financing statement indicates that the debtor is
19 an organization, provide 1 or more of the following:
20 (A) A type of organization for the debtor.
21 (B) A jurisdiction of organization for the debtor.
22 (C) An organizational identification number for the debtor
23 or indicate that the debtor has none.
24 (f) In the case of an assignment reflected in an initial
25 financing statement under section 9514(1) or an amendment filed
26 under section 9514(2), the record does not provide a name and
27 mailing address for the assignee.
1 (g) In the case of a continuation statement, the record is
2 not filed within the 6-month period prescribed by section
3 9515(4).
4 (3) For purposes of subsection (2), both of the following
5 apply:
6 (a) A record does not provide information if the filing
7 office is unable to read or decipher the information.
8 (b) A record that does not indicate that it is an amendment
9 or identify an initial financing statement to which it relates,
10 as required by section 9512, 9514, or 9518, is an initial
11 financing statement.
12 (4) A record that is communicated to the filing office with
13 tender of the filing fee, but which the filing office refuses to
14 accept for a reason other than one set forth in subsection (2) or
15 section 9520(5), is effective as a filed record except as against
16 a purchaser of the collateral which gives value in reasonable
17 reliance upon the absence of the record from the files.
18 Sec. 9520. (1) A filing office shall refuse to accept a
19 record for filing for a reason set forth in section 9516(2) or
20 subsection (5) and may refuse to accept a record for filing only
21 for a reason set forth in section 9516(2) or subsection (5).
22 (2) If a filing office refuses to accept a record for
23 filing, it shall communicate to the person that presented the
24 record the fact of and reason for the refusal and the date and
25 time the record would have been filed had the filing office
26 accepted it. The communication must be made at the time and in
27 the manner prescribed by filing-office rule but, in the case of a
1 filing office described in section 9501(1)(b), in no event more
2 than 2 business days after the filing office receives the record.
3 (3) A filed financing statement satisfying section 9502(1)
4 and (2) is effective, even if the filing office is required to
5 refuse to accept it for filing under subsection (1). However,
6 section 9338 applies to a filed financing statement providing
7 information described in section 9516(2)(e) that is incorrect at
8 the time the financing statement is filed.
9 (4) If a record communicated to a filing office provides
10 information that relates to more than 1 debtor, this part applies
11 as to each debtor separately.
12 (5) Notwithstanding any other provision of this act, if a
13 person presents a record to a filing office for filing or
14 recording, the filing office may refuse to accept the record for
15 filing or recording if 1 or more of the following circumstances
16 exist:
17 (a) The record is not required or authorized to be filed or
18 recorded with the filing office.
19 (b) The record is being filed or recorded for a purpose
20 outside the scope of this article.
21 (c) The filing office has reasonable cause to believe the
22 record is materially false or fraudulent.
23 (d) The record is intended for an improper purpose, such as
24 to hinder, harass, or otherwise wrongfully interfere with a
25 person. For purposes of this subsection, an improper purpose
26 includes, but is not limited to, asserting a claim against a
27 current or former employee or officer of a federal, state,
1 county, or other local governmental unit that relates to the
2 performance of the officer's or employee's public duties, and for
3 which the filer does not hold a properly executed security
4 agreement or judgment from a court of competent jurisdiction.
5 (e) The record indicates that the debtor and the secured
6 party are substantially the same or that an individual debtor is
7 a transmitting utility.
8 (6) If a filing office refuses to accept a record for filing
9 or recording pursuant to subsection (5), the person who presented
10 the record to the filing office may commence an action under
11 section 9501a to require the filing office to accept the record
12 for filing or recording. A record ordered by the court to be
13 accepted is effective as a filed record from the initial filing
14 date except as against a purchaser of the collateral which gives
15 value in reasonable reliance on the absence of the record from
16 the files.
17 (7) A filing officer who, acting in a manner that does not
18 subject the filing officer to personal liability under the
19 statutes of this state, improperly refuses to accept a record for
20 filing or recording under subsection (5) is not personally liable
21 for the improper refusal or determination.
22 (8) Subsection (5) does not apply to a financing statement
23 filed by a regulated financial institution or a representative of
24 a regulated financial institution. If a regulated financial
25 institution that is attempting to file a financing statement is
26 organized under the law of a governmental unit other than this
27 state, the filing office may request the regulated financial
1 institution or its representative to provide verification of
2 regulation or licensure in the jurisdiction under whose law the
3 institution is organized. As used in this subsection, "regulated
4 financial institution" means that term as defined in section
5 9501a.
6 Sec. 9521. (1) A filing office that accepts written records
7 for filing shall not refuse to accept a written initial financing
8 statement in the following form that conforms to the current
9 format prescribed by the national conference of commissioners on
10 uniform state laws, except for a reason set forth in section
11 9516(2) : or
9520(5).
12 UCC FINANCING STATEMENT
13 FOLLOW INSTRUCTIONS (FRONT AND BACK) CAREFULLY
14 A. NAME AND PHONE OF CONTACT AT FILER [optional]
15 ______________________________________________________________
16 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
17 ______________________________________THE ABOVE SPACE IS FOR
18 ______________________________________FILING OFFICE USE ONLY
19 1. DEBTOR'S EXACT FULL LEGAL NAME – insert only 1 debtor name
20 (1a or 1b) – do not abbreviate or combine names
21 1a. ORGANIZATION'S NAME
22 ______________________________________________________________
23 OR 1b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
24 ______________________________________________________________
25 1c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
26 ______________________________________________________________
27 1d. TAX ID. NO. ADD'L INFO. RE 1e. TYPE OF ORGANIZATION
28 SSN OR EIN ORGANIZATION
29 DEBTOR
30 ______________ ______________ ____________________________
1 1f. JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL
2 ID. No., if any
3 _______________________________ __________________ [ ] NONE
4 2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME – insert only 1
5 debtor name (2a or 2b) – do not abbreviate or combine names
6 2a. ORGANIZATION'S NAME
7 ______________________________________________________________
8 OR 2b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
9 ______________________________________________________________
10 2c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
11 ______________________________________________________________
12 2d. TAX ID. NO. ADD'L INFO. RE 2e. TYPE OF ORGANIZATION
13 SSN OR EIN ORGANIZATION
14 DEBTOR
15 _____________ ______________ ____________________________
16 2f. JURISDICTION OF ORGANIZATION 2g. ORGANIZATIONAL
17 ID. No., if any
18 _______________________________ __________________ [ ] NONE
19 3. SECURED PARTY'S NAME (or name of total assignee of assignor
20 S/P) – insert only 1 secured party name (3a or 3b)
21 3a. ORGANIZATION'S NAME
22 ______________________________________________________________
23 OR 3b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
24 ______________________________________________________________
25 3c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
26 ______________________________________________________________
27 4. This FINANCING STATEMENT covers the following collateral:
28 ______________________________________________________________
29 5. ALTERNATIVE DESIGNATION [if applicable]: [ ] LESSEE/LESSOR
30 [ ] CONSIGNEE/CONSIGNOR [ ] BAILEE/BAILOR [ ] SELLER/BUYER
31 [ ] AG. LIEN [ ] NON-UCC FILING
32 6. [ ] This FINANCING STATEMENT is to be filed (for record) (or
33 recorded) in the REAL ESTATE RECORDS.
34 Attach Addendum [if applicable]
35 7. Check to REQUEST SEARCH REPORT(S) on Debtor(s)
36 [ ] All Debtors [ ] Debtor 1 [ ] Debtor 2
37 [ADDITIONAL FEE] [optional]
1 ______________________________________________________________
2 8. OPTIONAL FILER REFERENCE DATA
3 ______________________________________________________________
4 FILING OFFICE COPY – NATIONAL UCC FILING STATEMENT (FORM UCC 1)
5 (REV. 07/29/98)
6
7 [BACK OF FORM]
8 UCC FINANCING STATEMENT ADDENDUM
9 Follow instructions (front and back) CAREFULLY.
10 9. NAME OF FIRST DEBTOR (1a or 1b) ON RELATED FINANCING STATEMENT
11 ______________________________________________________________
12 9a. ORGANIZATION'S NAME
13 ______________________________________________________________
14 OR 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
15 ______________________________________________________________
16 10. MISCELLANEOUS:
17 ________________________________________THE ABOVE SPACE IS FOR
18 ________________________________________FILING OFFICE USE ONLY
19 11. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME – insert only 1
20 name (11a or 11b) – do not abbreviate or combine names
21 11a. ORGANIZATION'S NAME
22 ______________________________________________________________
23 OR 11b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
24 ______________________________________________________________
25 11c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
26 ______________________________________________________________
27 11d. TAX ID. NO. ADD'L INFO. RE 11e. TYPE OF ORGANIZATION
28 SSN OR EIN ORGANIZATION
29 DEBTOR
30 __________ _______________ ___________________________
31 11f. JURISDICTION OF ORGANIZATION 11g. ORGANIZATIONAL
32 ID. No., if any
33 _________________________________ ___________________[ ] NONE
1 12. [ ] ADDITIONAL SECURED PARTY'S or [ ] ASSIGNOR S/P'S NAME -
2 insert only 1 name (12a or 12b).
3 12a. ORGANIZATION'S NAME
4 ______________________________________________________________
5 OR 12b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
6 ______________________________________________________________
7 12c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
8 ______________________________________________________________
9 13. This FINANCING STATEMENT covers [ ] timber to be cut or
10 [ ] as-extracted collateral, or is filed as a [ ] fixture
11 filing.
12 14. Description of real estate:
13 ______________________________________________________________
14 15. Name and address of a RECORD OWNER of the above-described
15 real estate (if Debtor does not have record interest):
16 ______________________________________________________________
17 16. Additional collateral description:
18 ______________________________________________________________
19 17. Check only if applicable and check only 1 box:
20 Debtor is a [ ] Trust or [ ] Trustee acting with respect to
21 property held in trust or [ ] Decedent's Estate
22 18. Check only if applicable and check only 1 box:
23 [ ] Debtor is a TRANSMITTING UTILITY
24 [ ] Filed in connection with a Manufactured-Home Transaction
25 - effective 30 years
26 [ ] Filed in connection with a Public-Finance Transaction -
27 effective 30 years
28
29 FILING OFFICE COPY – NATIONAL UCC FILING STATEMENT (FORM UCC 1Ad)
30 (REV. 07/29/98)
31 (2) A filing office that accepts written records for filing
32 shall not refuse to accept a written financing statement
1 amendment in the following form on a form that conforms to the
2 current format prescribed by the national conference of
3 commissioners on uniform state laws, except for a reason set
4 forth in section 9516(2) : or
9520(5).
5 UCC FINANCING STATEMENT AMENDMENT
6 FOLLOW INSTRUCTIONS (FRONT AND BACK) CAREFULLY
7 A. NAME AND PHONE OF CONTACT AT FILER [optional]
8 ______________________________________________________________
9 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
10 _______________________________________ THE ABOVE SPACE IS FOR
11 _______________________________________ FILING OFFICE USE ONLY
12 1a. INITIAL FINANCING STATEMENT FILE NO.
13 ______________________________________________________________
14 1b. [ ] This FINANCING STATEMENT AMENDMENT is to be filed (for
15 record) (or recorded) in the REAL ESTATE RECORDS.
16 2. [ ] TERMINATION: Effectiveness of the Financing Statement
17 identified above is terminated with respect to security
18 interest(s) of the Secured Party authorizing this Termination
19 Statement.
20 3. [ ] CONTINUATION: Effectiveness of the Financing Statement
21 identified above with respect to security interest(s) of the
22 Secured Party authorizing this Continuation Statement is con-
23 tinued for the additional period provided by applicable law.
24 4. [ ] ASSIGNMENT (full or partial): Give name of assignee in
25 item 7a or 7b and address of assignee in item 7c; and also
26 give name of assignor in item 9.
27 ______________________________________________________________
28 5. AMENDMENT (PARTY INFORMATION): This Amendment affects
29 [ ] Debtor or [ ] Secured Party of record. Check only 1
of
30 these 2 boxes. Also check 1 of the following three boxes and
31 provide appropriate information in items 6 and/or 7.
32 [ ] CHANGE name and/or address: Give current record name in
33 item 6a or 6b; also give new name (if name change) in
34 item 7a or 7b and/or new address (if address change) in
35 item 7c.
1 [ ] DELETE name: Give record name to be deleted in item 6a
2 or 6b.
3 [ ] ADD name: Complete item 7a or 7b, and also item 7c; also
4 complete items 7d-7g (if applicable).
5 6. CURRENT RECORD INFORMATION:
6 6a. ORGANIZATION'S NAME
7 ______________________________________________________________
8 OR 6b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
9 ______________________________________________________________
10 7. CHANGED (NEW) OR ADDED INFORMATION:
11 7a. ORGANIZATION'S NAME
12 ______________________________________________________________
13 OR 7b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
14 ______________________________________________________________
15 7c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY
16 ______________________________________________________________
17 7d. TAX ID. NO. ADD'L INFO. RE 7e. TYPE OF ORGANIZATION
18 SSN OR EIN ORGANIZATION
19 DEBTOR
20 ______________ _______________ ____________________________
21 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL
22 ID. No., if any
23 ________________________________ __________________ [ ] NONE
24 8. AMENDMENT (COLLATERAL CHANGE): check only 1 box
25 Describe collateral [ ] deleted or [ ] added, or give
26 entire [ ] restated collateral description, or describe
27 collateral [ ] assigned.
28 ______________________________________________________________
29 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT
30 (name of assignor, if this is an Assignment). If this is an
31 Amendment authorized by a Debtor which adds collateral or
32 adds the authorizing Debtor, or if this is a Termination
33 authorized by a Debtor, check here [ ] and enter name of
34 DEBTOR authorizing this Amendment.
35 9a. ORGANIZATION'S NAME
1 ______________________________________________________________
2 OR 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
3 ______________________________________________________________
4 10. OPTIONAL FILE REFERENCE DATA
5 ______________________________________________________________
6
7 FILING OFFICE COPY – NATIONAL UCC FINANCING STATEMENT AMENDMENT
8 (FORM UCC3) (REV. 07/29/98)
9
10 [BACK OF FORM]
11 UCC FINANCING STATEMENT AMENDMENT ADDENDUM
12 FOLLOW INSTRUCTIONS (front and back) CAREFULLY
13 11. INITIAL FINANCING STATEMENT FILE NO. (same as item 1a on
14 Amendment form)
15 ______________________________________________________________
16 12. NAME OF PARTY AUTHORIZING THIS AMENDMENT (same as item 9 on
17 Amendment form)
18 12a. ORGANIZATION'S NAME
19 ______________________________________________________________
20 OR 12b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
21 ______________________________________________________________
22 13. USE THIS SPACE FOR ADDITIONAL INFORMATION
23 ____________________________________ THIS SPACE IS FOR
24 ____________________________________ FILING OFFICE USE ONLY
25
26 FILING OFFICE COPY – NATIONAL UCC FINANCING STATEMENT AMENDMENT
27 ADDENDUM (FORM UCC3Ad) (REV. 07/29/98)
28 (3) A form that a filing office may not refuse to accept
29 under subsection (1) or (2) must conform to the format prescribed
30 for the form by the National Conference of Commissioners.
31 Enacting section 1. Section 9527 of the uniform commercial
1 code, 1962 PA 174, MCL 440.9527, is repealed.