Bill Text: MI SB1101 | 2011-2012 | 96th Legislature | Introduced

---

Bill Title: Liens; other; procedure regarding disposition of fraudulently filed financing statements; expand filing offices to which procedure applies. Amends sec. 9501a of 1962 PA 174 (MCL 440.9501a).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-26 - Referred To Committee On Judiciary [SB1101 Detail]

Download: Michigan-2011-SB1101-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1101

 

 

April 26, 2012, Introduced by Senator SCHUITMAKER and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1962 PA 174, entitled

 

"Uniform commercial code,"

 

by amending section 9501a (MCL 440.9501a), as added by 2008 PA 381.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9501a. (1) A person identified as a debtor in a financing

 

statement filed with the secretary of state may file an affidavit

 

with the secretary of state filing office in the form prescribed

 

under subsection (2) stating that the financing statement is

 

fraudulent. A person shall not file an affidavit under this

 

subsection with respect to a financing statement filed by a

 

regulated financial institution or a representative of a regulated

 

financial institution.

 

     (2) The secretary of state shall adopt and make available a

 

form affidavit to be used to give notice of a fraudulent financing

 

statement under subsection (1).

 

     (3) On receipt of an affidavit under subsection (1), the

 

secretary of state filing office shall terminate the financing

 

statement effective on the date the affidavit is filed.

 

     (4) The secretary of state A filing office shall not charge a

 

fee to file an affidavit under this section. The secretary of state

 

A 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) The secretary of state 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) If the court in an action under this section or section

 

9520(7) determines that the financing statement should be

 

reinstated or accepted, the court shall provide a copy of its order

 

to the secretary of state. appropriate filing office. On receipt of

 

an order reinstating a financing statement, the secretary of state

 

filing office shall file a record that identifies by its file

 

number the initial financing statement to which the record relates

 

and indicates that the financing statement has been reinstated.

 

     (7) On the filing of a record reinstating a financing

 

statement under subsection (6), the financing statement is

 

effective as a filed record from the initial filing date. If a

 

financing statement that is reinstated would have lapsed during the

 

period of termination, the secured party may file a continuation

 

statement within 30 days after the record reinstating the financing

 

statement is filed. The continuation statement is effective as a

 

filed record from the date the financing statement would have

 

lapsed. However, a financing or continuation statement is not

 

retroactive as provided in this subsection as against a purchaser

 

of the collateral that gives value in reasonable reliance on the

 

absence of the record from the files.

 

     (8) If the court in an action under this section determines

 

that the financing statement is fraudulent, the filer of the

 

financing statement shall pay the costs and expenses incurred by

 

the person identified as a debtor in the financing statement in the

 

action.

 

     (9) An individual who files a materially false or fraudulent

 

affidavit under subsection (1) 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, "regulated financial

 

institution" means a financial institution subject to regulatory

 

oversight or examination by a state or federal agency. Regulated

 

financial institution includes a bank, savings bank, savings

 

association, building and loan association, credit union, consumer

 

finance company, industrial bank, industrial loan company,

 

insurance company, investment company, installment seller, mortgage

 

servicer, sales finance company, or leasing company.