April 8, 2008, Introduced by Reps. Coulouris, Bieda, Griffin and Horn and referred to the Committee on Banking and Financial Services.
A bill to amend 1962 PA 174, entitled
"Uniform commercial code,"
(MCL 440.1101 to 440.11102) by adding section 9501a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9501a. (1) On receipt of a notice from a filing office
that a financing statement has been filed that identifies a public
officer or a public officer's spouse as a debtor, the public
officer or spouse may file an affidavit in the form prescribed by
the secretary of state under subsection (2) stating that the
financing statement is fraudulent.
(2) The secretary of state shall adopt and make available a
form affidavit to be used by a public officer or public officer's
spouse to give notice of a fraudulent filing statement.
(3) On receipt of an affidavit under subsection (1), a filing
office shall terminate the financing statement effective on the
date the affidavit is filed with the filing office.
(4) A filing office shall not charge a fee to file an
affidavit under this section. The filing office shall not return
any filing fee paid for filing the financing statement, regardless
of whether the financing statement is terminated under this
section.
(5) A filing office shall send notice of the termination of a
financing statement under subsection (3) to the filer of the
financing statement advising the filer that the financing statement
has been terminated. If the filer of the financing statement
believes in good faith that the statement was legally filed and is
not fraudulent, the filer may file an action to reinstate the
financing statement.
(6) An action under subsection (5) shall be filed in the
following court:
(a) If the financing statement named an employee or the spouse
of an employee of this state as a debtor, in the Ingham county
circuit court.
(b) If subdivision (a) does not apply, in the circuit court
for the county in which the public officer or spouse resides.
(7) If the court in an action under subsection (5) determines
that the financing statement should be reinstated, the court shall
file its order reinstating the financing statement with the
filing office. The reinstatement shall be effective as notice to
bona fide purchasers or creditors only after the order is filed.
(8) If the court in an action under subsection (5) determines
that the financing statement is invalid, the filer of the financing
statement shall pay the costs and expenses incurred by the public
official or spouse of the public official in defending the action.
(9) An individual who files a false or fraudulent affidavit
under this section is guilty of a felony punishable by imprisonment
for not more than 5 years or a $2,500.00 fine, or both.
(10) As used in this section, "public officer" means an
individual who is or was employed by this state, by a local unit of
government, including a county, township, city, village, court,
or other authority, or by the government of the United States.