2013 North Dakota Century Code Title 41 Uniform Commercial Code Chapter 41-10 Fraudulent and Harassing Financing Statement Records
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CHAPTER 41-10
FRAUDULENT AND HARASSING FINANCING STATEMENT RECORDS
41-10-01. (Effective through July 31, 2015, or see note) Definitions.
As used in this chapter:
1. "Authorized", when used with reference to a financing statement record, means that
the financing statement record was filed by a person authorized to do so as provided
in sections 41-09-80 and 41-09-130.
2. "Debtor" means a natural person whose name was provided in a financing statement
record as an individual debtor or one of the types of persons listed in section 41-09-76.
3. "Filing office" or "filing officer" refers to the appropriate office or officer where a
financing statement record is to be filed as provided by section 41-09-72, including the
county recorder, the secretary of state, and other designated filing officers.
4. "Financing statement record" means an initial financing statement, an amendment that
adds collateral covered by a financing statement, and an amendment that adds a
debtor to a financing statement as such terms are used in this title.
(Effective after July 31, 2015, or see note) Definitions. As used in this chapter:
1. "Authorized", when used with reference to a financing statement record, means that
the financing statement record was filed by a person authorized to do so as provided
in sections 41-09-80 and 41-09-130.
2. "Debtor" means a natural person whose name was provided in a financing statement
record as an individual debtor or one of the types of persons listed in section 41-09-76.
3. "Filing office" or "filing officer" refers to the central indexing system, which must be
provided by the secretary of state, where a financing statement record is to be filed
electronically as provided by section 41-09-72.
4. "Financing statement record" means an initial financing statement, an amendment that
adds collateral covered by a financing statement, and an amendment that adds a
debtor to a financing statement as such terms are used in this title.
41-10-02. Criminal penalty.
1. A person commits an offense if the person knowingly causes to be presented for filing
in a filing office, or promotes the filing in a filing office, of a financing statement record
that the person knows:
a. Not to be authorized under section 41-09-80 or 41-09-130 by the natural person
whose name was provided as an individual debtor in the financing statement; and
b. Was filed or presented for filing with the intent that:
(1) The financing statement record be used to harass or hinder the natural
person whose name was provided as an individual debtor in the financing
statement record without that person's authorization; or
(2) The financing statement record be used to defraud any person.
2. An offense under this section is a class A misdemeanor, unless it is alleged and shown
at the trial of the offense that the person had previously been convicted under this
provision on two or more occasions, in which event the offense is a class C felony.
41-10-03. Civil penalty.
1. A person shall not knowingly cause to be presented for filing in a filing office or
promote the filing of a financing statement record in a filing office that the person
knows:
a. Not to be authorized under section 41-09-80 or 41-09-130 by the natural person
whose name was provided as an individual debtor in the financing statement
record; and
b. Was filed or presented for filing with the intent that:
(1) The financing statement record be used to harass or hinder the natural
person whose name was provided as an individual debtor in the financing
statement record without that person's authorization; or
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2.
(2) The financing statement record be used to defraud any person.
A person who violates subsection 1 is liable to each such debtor for:
a. The greater of ten thousand dollars or the actual damages caused by the
violation;
b. Court costs;
c. Reasonable attorney's fees;
d. Related expenses of bringing the action, including investigative expenses; and
e. Exemplary damages in the amount determined by the court.
41-10-04. Cause of action - Injunction.
1. The following persons may bring an action to enjoin violation of this chapter or to
recover civil damages under this chapter:
a. The natural person whose name was provided as an individual debtor in the
financing statement record filed without that person's authorization under section
41-09-80, any person who owns an interest in the collateral described or
indicated in the financing statement record, or any person directly harmed by the
filing of the financing statement record;
b. The attorney general;
c. A state's attorney;
d. A municipal attorney; and
e. A person who has been damaged as a result of an action taken in reliance on the
filed financing statement record.
2. A filing officer may refer a matter to the attorney general or other appropriate person
for filing the legal action under this chapter.
41-10-05. (Effective through July 31, 2015, or see note) Venue.
An action under this chapter may be brought in any district court in the county in which the
financing statement record is presented for filing or in a county where any of the persons who
may bring an action under this chapter reside.
(Effective after July 31, 2015, or see note) Venue. An action under this chapter may be
brought in any district court in a county where any of the persons who may bring an action
under this chapter reside.
41-10-06. Other remedies.
This law is cumulative of other law under which a person may obtain judicial relief with
respect to any filed or recorded document.
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