SB 209 - This act creates a central filing system in the office of the Secretary of State for filing financing statements to perfect a security interest in farm products. The Secretary of State shall operate and maintain the system and compile information from all the statements into a master list organized according to farm product and further arranged in alphabetical order by last name of the debtor, by social security number of the debtor, geographically by county, and by crop year. Individuals may register with the Secretary of State to receive the list in return for a $30 registration fee and an annual fee, the sum of which depends on the type of list requested. Requirements relating to additional fees and electronic requests are provided and all fees collected by the Secretary of State shall be deposited in the Secretary of State's technology trust fund. The Secretary of State is given the authority to promulgate rules to implement the system.
In accordance with the Food Security Act, 7 U.S.C. 1631, the Secretary of State shall apply to the Secretary of the United States Department of Agriculture for certification of the central filing system.
Requirements for an effective filing statement are provided and such statements shall remain effective for 5 years from the date of filing, subject to extensions for additional periods of 5 years by refiling or filing a continuation statement within 6 months before the 5 year expiration.
When there is no outstanding secured obligation and no commitment to give value, the secured party shall notify the debtor of his or her right to receive a notice of lapse of the financing statement which shall lead to the removal of the name of the debtor from the files and lists compiled by the Secretary of State. In lieu of this notice, the secured party may acquire a waiver of the debtor of such right and a request by the debtor that the statement be retained on file. If the secured party does not furnish the notice or obtain the waiver, the secured party shall provide the debtor with a written notification of the debtor's right to have a notice of lapse filed within 10 days of final payment of all secured obligations.
A buyer in the ordinary course of business buying farm products covered by the central filing system shall take subject to the security interest identified under the system unless the buyer makes an inquiry into the system and the system does not correctly identify the debtor. Buyers take free of any security interest if the buyer obtains a waiver or release of the interest from the secured party.
This act is similar to HB 594 (2009).