Download as PDF
355.9-516A Administrative rejection of unauthorized records.
(1)
(2)
(3)
(4)
(5)
Upon approval of the Secretary of State, a filing office may refuse to accept a record
communicated for filing under this article if it is evident from the contents of the
record, including the described collateral, or from information in a record
accompanying the record communicated for filing, that the person filing the record
is not authorized to do so under KRS 355.9-509 or 355.9-708. This section only
applies if all debtors and secured parties indicated on the record are individuals.
If a filing office refuses to accept a record pursuant to subsection (1) of this section,
it shall immediately inform the person attempting to file the record and all persons
identified on the record as secured parties that the record has not been accepted, and
may request additional documentation supporting the filing. The Secretary of State
shall review all documentation received pursuant to a request under this subsection,
and if the Secretary of State concludes that the record is authorized under KRS
355.9-509 or 355.9-708, the Secretary of State shall direct the filing office to
promptly accept the record.
A person indicated as a secured party of record on a financing statement that is
refused pursuant to subsection (1) of this section may request from the Secretary of
State an expedited administrative review of the decision to refuse filing.
A person indicated as a secured party of record on a financing statement that is
refused filing pursuant to subsection (1) of this section may bring an action against
the Secretary of State seeking a determination that the financing statement was filed
by a person entitled to do so under KRS 355.9-509(1) and was authorized. An
action under this subsection shall have priority on the court's calendar and shall
proceed by expedited hearing. If the individual who filed the affidavit resides in this
state, the exclusive venue in this state for the action shall be in the Circuit Court for
the county where the individual principally resides in this state. If the individual
who filed the affidavit does not reside in this state, the exclusive venue in this state
shall be in the Circuit Court for the county where the filing office in which the
financing statement was filed is located.
If the Secretary of State determines in an expedited administrative review initiated
under subsection (3) of this section, or if a court determines in an action brought
pursuant to subsection (4) of this section, that a rejected record was filed by a
person entitled to do so under KRS 355.9-509(1) and should have been accepted for
filing, upon receipt of a certified copy of that determination the filing office shall
promptly file the record. Upon the filing of a record improperly refused under
subsection (1) of this section, the record shall be treated as if it had been filed and
effective as of the date originally submitted, except against a person that purchased
the collateral in good faith between the date the record was rejected for filing and
the subsequent actual date of the filing, to the extent that the person gave new value
in reliance on the absence of the record from the files.
Effective: July 1, 2013
History: Created 2012 Ky. Acts ch. 132, sec. 85, effective July 1, 2013.
Legislative Research Commission Note (3/14/2013). 2013 Ky. Acts ch. 10, secs. 2 and
3 provide that the statutes in Article 9 of the Uniform Commercial Code that were
amended or created in 2012 Ky. Acts ch. 132, secs. 60 to 99, are effective July 1,
2013. This statute was one of those sections. Since only the effective date of a prior
Act was altered, and not the text of the affected statutes, reference to 2013 Ky. Acts
ch. 10 does not appear in the history for this statute.
Legislative Research Commission Note (7/12/2012). In 2010, the National Conference
of Commissioners on Uniform State Laws and the American Law Institute proposed a
Uniform Act for adoption by the states that contained revisions to Article 9 of the
Uniform Commercial Code. The effective date for all proposed Article 9 revisions
was to be July 1, 2013. Those revisions were enacted in 2012 Ky. Acts Chapter 132,
Sections 60 to 99. Sections 60 to 90 contained the substantive Article 9 revisions,
and Sections 91 to 99 contained the transitional Article 9 revisions created to handle
secured transactions made prior to July 1, 2013. Section 91 of that Act (codified as
KRS 355.9-801) and Section 102 of that Act (a noncodified effective date provision)
both stated, "Sections 91 to 99 of this Act take effect July 1, 2013." The normal
effective date for legislation enacted at the 2012 Regular Session of the General
Assembly is July 12, 2012. In Opinion of the Attorney General 12-010, issued July 3,
2012, Section 91 (codified as KRS 355.9-801) was determined to have contained a
manifest clerical error, and should have instead read, "Sections 60 to 90 of this Act
take effect July 1, 2013," thereby making the substantive Article 9 revisions effective
on the same date as the transitional Article 9 provisions in conformity with the 2010
Uniform Act proposal and 2012 Ky. Acts Chapter 132, Section 102. This statute was
one of the substantive provisions of Article 9 contained in 2012 Ky. Acts Chapter
132, Sections 60 to 90.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
