Refusal to File; Cancellation; Defects in Filing

PURPOSE: This rule provides guidelines for when a filing officer may refuse acceptance of records. (1) The filing officer may refuse to accept filing of a Uniform Commercial Code (UCC) record for the reasons specified in section 400.9-516, RSMo. (2) Defects that do not warrant a filing officer’s refusal to accept a record include, but are not limited to, the following: (A) The UCC record contains or appears to contain a misspelling or other erroneous information; (B) The UCC record appears to identify a debtor incorrectly; (C) The UCC record appears to identify a secured party or a secured party of record incorrectly; (D) The UCC record contains additional or extraneous information of any kind; (E) The UCC record contains less than the information required by law except for information allowing rejection pursuant to 400.9516(b), RSMo; and (F) The UCC record incorrectly identifies collateral, or contains an illegible or unintelligible description of collateral, or appears to contain no such description. (3) If the record contains more than one (1) debtor name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings. The filing officer may provide a notice to the remitter containing the file number of the record, identification of the debtor name that was indexed, and a statement that any debtors with illegible or missing names or addresses were not indexed. (4) If the record contains more than one (1) secured party or assignee name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings. The filing officer may provide a notice to the filer containing the file number of the record, identification of the secured party name that was indexed, and a statement that the secured parties with illegible or missing names or addresses were not indexed. (5) If an amendment requests multiple actions, the filing officer shall file and index the information in accordance with the requested actions as long as adequate information can be indexed with the appropriate finance number. (6) If, within thirty (30) days of the date that a record is rejected, a secured party or a remitter demonstrates to the satisfaction of the filing officer that a UCC record should not have been refused, the filing officer shall file the UCC record. The record shall be given a filing date and time reflecting the date and time the document would have been filed if it had been accepted when originally tendered for filing. (7) The secretary of state may refuse to accept filing of a UCC record when the secretary of state determines that the record is not created pursuant to Chapter 400.9, RSMo, or is otherwise intended for an improper purpose, such as to hinder, harass, or otherwise wrongfully interfere with any person. (8) The secretary of state shall cancel a previously filed record if— (A) An information statement alleging that a previously filed record was wrongfully filed and that it should have been rejected under section (7) of this rule; (B) Such information statement includes a written certification, under oath, by the person that the contents of the information statement are true and accurate to the best of the person’s knowledge; and (C) The secretary of state, without undue delay, determines that the contested record was wrongfully filed and should have been rejected. In order to determine whether the record was wrongfully filed, the secretary of state may require the person filing the correction statement and the secured party to provide any additional relevant information requested by the secretary of state, including an original or a copy of any security agreement that is related to the record. If the secretary of state finds that the record was wrongfully filed and should have been rejected under section (7) of this rule, the secretary of state shall cancel the record and it shall be void and of no effect. (9) The secretary of state shall cancel a previously filed record if— (A) An information statement alleging that the person who filed the record was not entitled to do so under section 400.9-509(d); (B) The person filing the information statement is a secured party of record with respect to the financing statement to which the record relates; (C) Such information statement includes a written certification, under oath, by the person that the contents of the information statement are true and accurate to the best of the person’s knowledge; and (D) The secretary of state, without undue delay, determines that the person who filed the contested record was not entitled to do so under section 400.9-509(d) and should have been rejected. In order to determine whether the person who filed the record was not entitled to do so, the secretary of state may require the person filing the information statement and the person who filed the contested record to provide any additional relevant information requested by the secretary of state, including an original or a copy of any security agreement that is related to the record. If the secretary of state finds that the person who filed the record was not entitled to do so, the secretary of state shall cancel the record and it shall be void and of no effect. (10) If the secretary of state cancels a record under section (8) or (9), the secretary shall communicate to the person that presented the record the fact of and reason for the cancellation. (11) If the secretary of state refuses to accept a record for filing pursuant to section (7) of this rule or cancels a wrongfully filed record pursuant to section (8) of this rule, or cancels a record pursuant to section (9) of this rule, the secured or affected party may file an appeal within thirty (30) days after the refusal or cancellation in the Circuit Court of Cole County. (A) Filing a petition requesting to be allowed to file the document commences the appeal. The petition shall be filed with the court and the secretary of state and shall have the record attached to it. Upon the commencement of an appeal, it shall be advanced on the court docket and heard and decided by the court as soon as possible. (B) Upon consideration of the petition and other appropriate pleadings, the court may order the secretary of state to file the record or take other action the court considers appropriate, including the entry of orders affirming, reversing, or otherwise modifying the decision of the secretary of state. The court may order other relief, including equitable relief, as may be appropriate. (C) The court’s final decision may be appealed as in other civil proceedings. AUTHORITY: section 400.9-526, RSMo Supp. 2013.* Emergency rule filed Feb. 10, 2003, effective Feb. 20, 2003, expired March 30, 2003. Original rule filed Sept. 30, 2002, effective March 30, 2003. Emergency amendment filed Aug. 16, 2013, effective Aug. 28, 2013, expired Feb. 27, 2014. Amended: Filed Aug. 16, 2013, effective Feb. 28, 2014. *Original authority: 400.9-526, RSMo 2001.