SB 724 Modifies the law relating to the filing of fraudulent financing statements with the Secretary of State and real property documents with recorders of deeds
Sponsor: Parson
LR Number: 4885S.03I Fiscal Note available
Committee: Judiciary and Civil and Criminal Jurisprudence
Last Action: 5/16/2014 - S Informal Calendar S Bills for Perfection--SB 724-Parson Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2014

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Current Bill Summary


SB 724 - This act modifies the law relating to the filing of fraudulent financing statements with the Secretary of State and real property documents with recorders of deeds.

The act creates a Class D felony crime of knowingly or intentionally filing, attempting to file, or recording a financing statement with the Secretary of State or a real property document with a recorder of deeds that is to be used to harass or defraud another or that is materially false or fraudulent. Such financing statements may be deemed ineffective and be terminated.

A document is presumed to be false or fraudulent if it is filed by an inmate in the custody of the department of corrections or on behalf of such a person. This presumption may be rebutted by providing the Secretary of State with a sworn and notarized document signed by the obligor, debtor or owner of the collateral stating that the person entered into a security agreement with the inmate.

Filings shall not occur when the Secretary of State has reasonable cause to believe the record is materially false or fraudulent or when the record reveals on its face that it is being filed for a purpose other than to perfect a security interest to secure a debt under the chapter.

If an information statement is filed alleging that a record was wrongfully filed, the Secretary of State shall determine the veracity of the statement and may require the person filing the statement or the secured party to provide additional information. If the statement is proven true, the record shall be void and ineffective and the secured party named in the record shall be notified of the termination.

CHRIS HOGERTY