2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 95 - Filing
Section 9518 - Claim concerning inaccurate or wrongfully filed record

     § 9518.  Claim concerning inaccurate or wrongfully filed record.
        (a)  Correction statement.--A person may file in the filing
     office a correction statement with respect to a record indexed
     there under the person's name if the person believes that the
     record is inaccurate or was wrongfully filed.
        (b)  Sufficiency of correction statement.--A correction
     statement must:
            (1)  identify the record to which it relates by the file
        number assigned to the initial financing statement to which
        the record relates;
            (2)  indicate that it is a correction statement; and
            (3)  provide the basis for the person's belief that the
        record is inaccurate and indicate the manner in which the
        person believes the record should be amended to cure any
        inaccuracy or provide the basis for the person's belief that
        the record was wrongfully filed.
        (c)  Record not affected by correction statement.--Except as
     provided in subsection (d), the filing of a correction statement
     does not affect the effectiveness of an initial financing
     statement or other filed record.
        (d)  Fraudulent financing statements.--
            (1)  The Department of State may conduct an
        administrative hearing to determine if an initial financing
        statement was fraudulently filed in accordance with the
        following:
                (i)  The hearing shall be conducted in accordance
            with 2 Pa.C.S. (relating to Administrative Law and
            Procedure). The department shall determine the initial
            financing statement to be fraudulently filed for purposes
            of this subsection if it determines that no rational
            basis exists under section 9509 (relating to persons
            entitled to file a record) entitling the person to file
            the initial financing statement and it appears that the
            person filed the initial financing statement with intent
            to annoy, harass or harm the debtor.
                (ii)  If the department determines that the initial
            financing statement was fraudulently filed and no timely
            appeal of the determination was filed, the department
            shall file a correction statement with respect to the
            initial financing statement indexed there. In addition to
            complying with the requirements of subsection (b), the
            correction statement filed by the department under this
            paragraph shall state all of the following:
                    (A)  the correction statement was filed by the
                department under this subsection;
                    (B)  the department has determined that the
                initial financing statement was fraudulently filed
                and that the person had the right to appeal the
                decision to a court of competent jurisdiction;
                    (C)  the initial financing statement found to be
                fraudulently filed may be ineffective; and
                    (D)  the reasons why the department found the
                initial financing statement to have been fraudulently
                filed.
                (iii)  A correction statement filed by the department
            in accordance with paragraph (ii) creates a rebuttable
            presumption that the initial financing statement found to
            be fraudulently filed is ineffective.
                (iv)  A person adversely affected by a determination
            of the department under paragraph (i) may appeal the
            determination in accordance with 2 Pa.C.S. § 702
            (relating to appeals).
                (v)  If the department determines that the initial
            financing statement was fraudulently filed and the
            determination is appealed to Commonwealth Court, the
            department shall file a correction statement with respect
            to the initial financing statement indexed there only
            upon affirmation by the court of its determination. In
            addition to complying with the requirements of subsection
            (b), the correction statement shall state all of the
            following:
                    (A)  the correction statement was filed by the
                department under this subsection;
                    (B)  the department has determined that the
                initial financing statement was fraudulently filed
                and that the person had the right to appeal the
                decision to a court of competent jurisdiction;
                    (C)  the initial financing statement found to be
                fraudulently filed is ineffective; and
                    (D)  the reasons why the department found the
                initial financing statement to have been fraudulently
                filed.
                (vi)  If the department files a correction statement
            with respect to the initial financing statement indexed
            there under this subsection, it shall refer the matter
            for criminal prosecution to the Office of Attorney
            General pursuant to 18 Pa.C.S. § 4911 (relating to
            tampering with public records or information).
            (2)  Nothing in this subsection limits the rights or
        remedies the debtor may have with respect to an initial
        financing statement that has been fraudulently filed. Nothing
        in this subsection limits the effectiveness of a termination
        or correction statement filed by a debtor under sections
        9509(d)(2) and 9513 (relating to termination statement) or
        the rights of a debtor under section 9625 (relating to
        remedies for secured party's failure to comply with
        division).

        Cross References.  Section 9518 is referred to in section
     9516 of this title.