June 10, 2008, Introduced by Reps. Lahti, McDowell, Polidori, Lindberg, Brown, Spade, Simpson, Bennett, Corriveau, Valentine and Stahl and referred to the Committee on Intergovernmental, Urban and Regional Affairs.
A bill to amend 1962 PA 174, entitled
"Uniform commercial code,"
by amending section 9501 (MCL 440.9501), as amended by 2004 PA 212.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9501. (1) Except as otherwise provided in subsection (2),
the office in which to file a financing statement to perfect the
security interest or agricultural lien is 1 of the following:
(a) The office designated for the filing or recording of a
record of a mortgage on the related real property, if the
collateral is as-extracted collateral or timber to be cut, or the
financing statement is filed as a fixture filing and the collateral
is goods that are or are to become fixtures.
(b) The office of secretary of state in all other cases,
including a case in which the collateral is goods that are or are
to become fixtures and the financing statement is not filed as a
fixture filing.
(2) The office in which to file a financing statement to
perfect a security interest in collateral, including fixtures, of a
transmitting utility is the office of the secretary of state. The
financing statement also constitutes a fixture filing as to the
collateral indicated in the financing statement which is or is to
become fixtures.
(3) Any financing statement filed under subsection (1)(a) with
a register of deeds and any continuation statement, termination
statement, amendment, or assignment relating to the financing
statement and meeting the formal requisites of this part shall be
recorded by the register of deeds, notwithstanding the provisions
for witnessing and acknowledging instruments to be recorded in the
real property records contained in section 47 of 1846 RS 65, MCL
565.47. The office of the register of deeds shall send notice by
first-class mail to the last known property owner of record of a
financing statement filed under subsection (1)(a). The register of
deeds shall determine the form of the written notice. The notice
shall contain at least all of the following information:
(a) The debtor's name and address as shown on the financing
statement.
(b) The secured party's name and address as shown on the
financing statement.
(c) A statement that "it is against the law in the state of
Michigan to file a false or fraudulent UCC statement that affects
real property. If you believe this filing was made falsely or
fraudulently, you may have recourse pursuant to law and should
consult an attorney."
(4) If the office of secretary of state receives a financing
statement under subsection (1)(b) or (2) for filing, and any debtor
identified on the financing statement is an individual, the
secretary of state shall provide written notice of the filing of
the financing statement to that debtor. The secretary of state
shall determine the form of the written notice and the written
notice shall contain at least all of the following information:
(a) The debtor's name and address as shown on the financing
statement.
(b) The secured party's name and address as shown on the
financing statement.
(c) The remedies available to the debtor under this act if he
or she believes that the financing statement is erroneously or
fraudulently filed.
(5) In addition to the written notice described in subsection
(4), the secretary of state shall provide at no charge to a debtor
described in that subsection a copy or image of the filed financing
statement and any attachments. If the debtor requests additional
copies or searches, the fees provided in section 9525 apply to that
request.
(6) A person shall not knowingly or intentionally file a false
or fraudulent financing statement with the office of the secretary
of state under subsection (1)(b) or (2). In addition to any other
penalty provided by law, a violation of this subsection is a felony
punishable by imprisonment for not more than 5 years or a fine of
not more than $2,500.00, or both. If the person is convicted of the
violation, the court may find that the financing statement is
ineffective and may order the office of the secretary of state to
terminate the financing statement and may order restitution.
(7) If a person files a false or fraudulent financing
statement with the office of the secretary of state under
subsection (1)(b) or (2), a debtor named in that financing
statement may file an action against the person that filed the
financing statement seeking appropriate equitable relief or
damages, including, but not limited to, an order declaring the
financing statement ineffective and ordering the office of the
secretary of state to terminate the financing statement, and
reasonable attorney fees.