HCS/HB 1412 - 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.
Under current law, a person subject to a lien who believes the lien is invalid may file a notice of invalid lien or petition the court to have the lien declared void and recover costs and attorney's fees after a hearing. In the alternative, under the provisions of this act, a person named as a debtor in a fraudulent financing statement with the Secretary of State may file an action for equitable relief, damages and attorneys fees.
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.
Under current law, the Secretary of State may reject a lien filing. In the alternative, under the provisions of this act, 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.
This act is similar to SB 724 (2014).
CHRIS HOGERTY