Bill Text: MI HB5624 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Commercial code; secured transactions; references to certain forms and statements; update. Amends secs. 9520, 9521 & 9525 of 1962 PA 174 (MCL 440.9520 et seq.).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-03-17 - Bill Electronically Reproduced 03/17/2020 [HB5624 Detail]
Download: Michigan-2019-HB5624-Introduced.html
HOUSE BILL NO. 5624
March 12, 2020, Introduced by Reps. O'Malley
and Sneller and referred to the Committee on Commerce and Tourism.
A bill to amend 1962 PA 174, entitled
"Uniform commercial code,"
by amending sections 9520, 9521, and 9525 (MCL 440.9520, 440.9521, and 440.9525), section 9520 as amended by 2008 PA 383, section 9521 as amended by 2012 PA 88, and section 9525 as amended by 2016 PA 229.
the people of the state of michigan enact:
Sec. 9520. (1) A filing office shall refuse to accept
a record for filing for a reason set forth in section 9516(2) or, if the filing
office is the secretary of state, subsection (5) and may refuse to accept a
record for filing only for a reason set forth in section 9516(2) or, if the
filing office is the secretary of state, subsection (5).
(2) If a filing office
refuses to accept a record for filing, it shall communicate to the person that
presented the record the fact of and reason for the refusal and the date and
time the record would have been filed had the filing office accepted it. The
communication must be made at the time and in the manner prescribed by
filing-office rule but, in the case of a filing office described in section 9501(1)(b),
in no event more than 2 business days after the filing office receives the
record.
(3) A filed financing
statement satisfying section 9502(1) and (2) is effective, even if the filing
office is required to refuse to accept it for filing under subsection (1).
However, section 9338 applies to a filed financing statement providing
information described in section 9516(2)(e) that is incorrect at the time the
financing statement is filed.
(4) If a record
communicated to a filing office provides information that relates to more than
1 debtor, this part applies as to each debtor separately.
(5) Notwithstanding any
other provision of this act, if a person presents a record to the secretary of
state for filing or recording, the secretary of state may refuse to accept the
record for filing or recording if 1 or more of the following circumstances
exist:
(a) The record is not
required or authorized to be filed or recorded with the secretary of state.
(b) The record is being
filed or recorded for a purpose outside the scope of this article.
(c) The secretary of
state has reasonable cause to believe the record is materially false or
fraudulent.
(d) The record asserts a
claim against a current or former employee or officer of a federal, state,
county, or other local governmental unit that relates to the performance of the
officer's or employee's public duties, and for which the filer does not hold a
properly executed security agreement or judgment from a court of competent
jurisdiction.
(e) The record indicates
that the debtor and the secured party are substantially the same or that an
individual debtor is a transmitting utility.
(6) If a correction statement an information statement filed with the
secretary of state under section 9518 alleges that a previously filed record
was wrongfully filed, the secretary of state shall, without undue delay,
determine whether the contested record was wrongfully filed. To determine
whether the record was wrongfully filed, the secretary of state may require the
person who filed the correction
statement information
statement or the secured party to provide any additional relevant
information requested by the secretary of state, including an original or copy
of a security agreement that is related to the record. If the secretary of
state finds that the record was wrongfully filed, the secretary of state shall
terminate the record and the record is void and ineffective. The secretary of
state shall notify the secured party named in the contested record of the
termination.
(7) If the secretary of
state refuses to accept a record for filing or recording pursuant to subsection
(5), the person who presented the record to the secretary of state may commence
an action under section 9501a to require the secretary of state to accept the
record for filing or recording. A record ordered by the court to be accepted is
effective as a filed record from the initial filing date except as against a
purchaser of the collateral which that gives value in reasonable reliance
on the absence of the record from the files.
(8) A filing officer who,
acting in a manner that does not subject the filing officer to personal
liability under the statutes of this state, improperly refuses to accept a
record for filing or recording under subsection (5) is not personally liable
for the improper refusal or determination.
(9) Subsection (5) does
not apply to a financing statement filed by a regulated financial institution
or a representative of a regulated financial institution. If a regulated
financial institution that is attempting to file a financing statement is
organized under the law of a governmental unit other than this state, the
secretary of state may request the regulated financial institution or its
representative to provide verification of regulation or licensure in the
jurisdiction under whose law the institution is organized. As used in this
subsection, "regulated financial institution" means that term as
defined in section 9501a.
Sec. 9521. (1) Except for a reason set forth in
section 9516(2) or 9520(5), a filing office that accepts written records for
filing shall not refuse to accept a written initial financing statement that
conforms to the form and format of the UCC financing statement (Form UCC1) (rev. 04/20/11) or the UCC financing statement addendum (Form UCC1Ad) (rev. 04/20/11), as promulgated by the American law institute and the uniform law
commission, Law Institute and
the Uniform Law Commission and adopted by the secretary of state, or
to the form and format of any other
revision to or version of either of those forms that are promulgated by the
American law institute and the uniform law commission and as approved by the International Institute of
Commercial Arbitration and adopted by the secretary of state, or any other form
adopted by the secretary of state.
(2) Except for a reason
set forth in section 9516(2) or 9520(5), a filing office that accepts written
records for filing shall not refuse to accept a written financing statement
amendment that conforms to the form and format of the UCC financing statement amendment
(Form UCC3)(rev. 04/20/11) or the UCC financing statement amendment addendum
(Form UCC3Ad)(rev. 04/20/11), promulgated by the American law institute and the uniform law
commission, Law Institute and
the Uniform Law Commission, or to the form and format of any
other revision to or version of either of those forms that are promulgated by
the American law institute and the uniform law
commission Law Institute and
the Uniform Law Commission and adopted by the secretary of state.
Sec. 9525. (1) Except as otherwise provided in
subsection (3) or (4), the fee for filing and indexing a record under this part
is $15.00.
(2) A filing office shall
charge a person a fee for responding to a request for a search of the records
filed with a filing office concerning a debtor, including issuance of a
certificate describing each presently effective record filed concerning the
debtor if requested. The fee is $6.00, plus 1 or more of the following, if
applicable:
(a) If the person
requests expediting of the regular search process, an additional fee of $25.00.
(b) If the person
requests copies of the presently effective records disclosed by the search, an
additional fee of $2.00 per page.
(c) If the filing office
is the secretary of state and the person requests that the secretary of state
include an impression of the official seal of the secretary of state on the
certificate, an additional fee of $6.00.
(3) This section does not
require a fee with respect to a record of a mortgage that is effective as a
financing statement filed as a fixture filing or as a financing statement
covering as-extracted collateral or timber to be cut under section 9502(3).
However, the recording fees that otherwise would be applicable to the record of
the mortgage under section 2567 of the revised judicature act of 1961, 1961 PA
236, MCL 600.2567, apply.
(4) There is no fee for filing and indexing a correction statement an information statement filed with the office of the secretary of state under section 9518, filed by an individual named as a debtor on a record indexed by the secretary of state.
