72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 484
Senate Bill 136
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Secretary of State Bill
Bradbury)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Permits Secretary of State to cancel or refuse to accept
certain wrongful filings under Uniform Commercial Code-Secured
Transactions.
A BILL FOR AN ACT
Relating to authority of Secretary of State to prevent wrongful
filings under Uniform Commercial Code-Secured Transactions;
creating new provisions; and amending ORS 79.0102, 79.0516,
79.0518 and 79.0520.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 79.0102 is amended to read:
79.0102. (1) As used in this chapter:
(a) 'Accession' means goods that are physically united with
other goods in such a manner that the identity of the original
goods is not lost.
(b) 'Account,' except as used in 'account for,' means a right
to payment of a monetary obligation, whether or not earned by
performance, (i) for property that has been or is to be sold,
leased, licensed, assigned, or otherwise disposed of, (ii) for
services rendered or to be rendered, (iii) for a policy of
insurance issued or to be issued, (iv) for a secondary obligation
incurred or to be incurred, (v) for energy provided or to be
provided, (vi) for the use or hire of a vessel under a charter or
other contract, (vii) arising out of the use of a credit or
charge card or information contained on or for use with the card,
or (viii) as winnings in a lottery or other game of chance
operated or sponsored by a state, governmental unit of a state,
or person licensed or authorized to operate the game by a state
or governmental unit of a state. The term includes
health-care-insurance receivables. The term does not include (i)
rights to payment evidenced by chattel paper or an instrument,
(ii) commercial tort claims, (iii) deposit accounts, (iv)
investment property, (v) letter-of-credit rights or letters of
credit, or (vi) rights to payment for money or funds advanced or
sold, other than rights arising out of the use of a credit or
charge card or information contained on or for use with the card.
(c) 'Account debtor' means a person obligated on an account,
chattel paper or general intangible. The term does not include
persons obligated to pay a negotiable instrument, even if the
instrument constitutes part of chattel paper.
(d) 'Accounting,' except as used in 'accounting for, ' means a
record:
(A) Authenticated by a secured party;
(B) Indicating the aggregate unpaid secured obligations as of a
date not more than 35 days earlier or 35 days later than the date
of the record; and
(C) Identifying the components of the obligations in reasonable
detail.
(e) 'Agricultural lien' means an interest, other than a
security interest or a lien created under ORS 87.226, 87.228,
87.700 to 87.736 or 87.750 to 87.777, in farm products:
(A) Which secures payment or performance of an obligation for:
(i) Goods or services furnished in connection with a debtor's
farming operation; or
(ii) Rent on real property leased by a debtor in connection
with its farming operation;
(B) Which is created by statute in favor of a person that:
(i) In the ordinary course of its business furnished goods or
services to a debtor in connection with a debtor's farming
operation; or
(ii) Leased real property to a debtor in connection with the
debtor's farming operation; and
(C) Whose effectiveness does not depend on the person's
possession of the personal property.
(f) 'As-extracted collateral' means:
(A) Oil, gas or other minerals that are subject to a security
interest that:
(i) Is created by a debtor having an interest in the minerals
before extraction; and
(ii) Attaches to the minerals as extracted; or
(B) Accounts arising out of the sale at the wellhead or
minehead of oil, gas or other minerals in which the debtor had an
interest before extraction.
(g) 'Authenticate' means:
(A) To sign; or
(B) To execute or otherwise adopt a symbol, or encrypt or
similarly process a record in whole or in part, with the present
intent of the authenticating person to identify the person and
adopt or accept a record.
(h) 'Bank' means an organization that is engaged in the
business of banking. The term includes savings banks, savings and
loan associations, credit unions and trust companies.
(i) 'Cash proceeds' means proceeds that are money, checks,
deposit accounts or the like.
(j) 'Certificate of title' means a certificate of title with
respect to which a statute provides for the security interest in
question to be indicated on the certificate as a condition or
result of the security interest's obtaining priority over the
rights of a lien creditor with respect to the collateral.
(k) 'Chattel paper' means a record or records that evidence
both a monetary obligation and a security interest in specific
goods, a security interest in specific goods and software used in
the goods, a security interest in specific goods and license of
software used in the goods, a lease of specific goods, or a lease
of specific goods and license of software used in the goods. In
this paragraph, 'monetary obligation' means a monetary obligation
secured by the goods or owed under a lease of the goods and
includes a monetary obligation with respect to software used in
the goods. The term does not include (i) charters or other
contracts involving the use or hire of a vessel or (ii) records
that evidence a right to payment arising out of the use of a
credit or charge card or information contained on or for use with
the card. If a transaction is evidenced by records that include
an instrument or series of instruments, the group of records
taken together constitutes chattel paper.
(L) 'Collateral' means the property subject to a security
interest or agricultural lien. The term includes:
(A) Proceeds to which a security interest attaches;
(B) Accounts, chattel paper, payment intangibles and promissory
notes that have been sold; and
(C) Goods that are the subject of a consignment.
(m) 'Commercial tort claim' means a claim arising in tort with
respect to which:
(A) The claimant is an organization; or
(B) The claimant is an individual and the claim:
(i) Arose in the course of the claimant's business or
profession; and
(ii) Does not include damages arising out of personal injury to
or the death of an individual.
(n) 'Commodity account' means an account maintained by a
commodity intermediary in which a commodity contract is carried
for a commodity customer.
(o) 'Commodity contract' means a commodity futures contract, an
option on a commodity futures contract, a commodity option or
another contract if the contract or option is:
(A) Traded on or subject to the rules of a board of trade that
has been designated as a contract market for such a contract
pursuant to federal commodities laws; or
(B) Traded on a foreign commodity board of trade, exchange, or
market, and is carried on the books of a commodity intermediary
for a commodity customer.
(p) 'Commodity customer' means a person for which a commodity
intermediary carries a commodity contract on its books.
(q) 'Commodity intermediary' means a person that:
(A) Is registered as a futures commission merchant under
federal commodities law; or
(B) In the ordinary course of its business provides clearance
or settlement services for a board of trade that has been
designated as a contract market pursuant to federal commodities
law.
(r) 'Communicate' means:
(A) To send a written or other tangible record;
(B) To transmit a record by any means agreed upon by the
persons sending and receiving the record; or
(C) In the case of transmission of a record to or by a filing
office, to transmit a record by any means prescribed by
filing-office rule.
(s) 'Consignee' means a merchant to which goods are delivered
in a consignment.
(t) 'Consignment' means a transaction, regardless of its form,
in which a person delivers goods to a merchant for the purpose of
sale and:
(A) The merchant:
(i) Deals in goods of that kind under a name other than the
name of the person making delivery;
(ii) Is not an auctioneer; and
(iii) Is not generally known by its creditors to be
substantially engaged in selling the goods of others;
(B) With respect to each delivery, the aggregate value of the
goods is $1,000 or more at the time of delivery;
(C) The goods are not consumer goods immediately before
delivery; and
(D) The transaction does not create a security interest that
secures an obligation.
(u) 'Consignor' means a person that delivers goods to a
consignee in a consignment.
(v) 'Consumer debtor' means a debtor in a consumer transaction.
(w) 'Consumer goods' means goods that are used or bought for
use primarily for personal, family or household purposes.
(x) 'Consumer-goods transaction' means a consumer transaction
in which:
(A) An individual incurs an obligation primarily for personal,
family or household purposes; and
(B) A security interest in consumer goods secures the
obligation.
(y) 'Consumer obligor' means an obligor who is an individual
and who incurred the obligation as part of a transaction entered
into primarily for personal, family or household purposes.
(z) 'Consumer transaction' means a transaction in which (i) an
individual incurs an obligation primarily for personal, family or
household purposes, (ii) a security interest secures the
obligation, and (iii) the collateral is held or acquired
primarily for personal, family or household purposes. The term
includes consumer-goods transactions.
(aa) 'Continuation statement' means an amendment of a financing
statement which:
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates that it is a continuation statement for, or that
it is filed to continue the effectiveness of, the identified
financing statement.
(bb) 'Debtor' means:
(A) A person having an interest, other than a security interest
or other lien, in the collateral, whether or not the person is an
obligor;
(B) A seller of accounts, chattel paper, payment intangibles or
promissory notes; or
(C) A consignee.
(cc) 'Deposit account' means a demand, time, savings, passbook
or similar account maintained with a bank. The term does not
include investment property or accounts evidenced by an
instrument.
(dd) 'Document' means a document of title or a receipt of the
type described in ORS 77.2010 (2).
(ee) 'Electronic chattel paper' means chattel paper evidenced
by a record or records consisting of information stored in an
electronic medium.
(ff) 'Encumbrance' means a right, other than an ownership
interest, in real property. The term includes mortgages and other
liens on real property.
(gg) 'Equipment' means goods other than inventory, farm
products or consumer goods.
(hh) 'Farm products' means goods, other than standing timber,
with respect to which the debtor is engaged in a farming
operation and which are:
(A) Crops grown, growing, or to be grown, including:
(i) Crops produced on trees, vines and bushes; and
(ii) Aquatic goods produced in aquacultural operations;
(B) Livestock, born or unborn, including aquatic goods produced
in aquacultural operations;
(C) Supplies used or produced in a farming operation; or
(D) Products of crops or livestock in their unmanufactured
states.
(ii) 'Farming operation' means raising, cultivating,
propagating, fattening, grazing or any other farming, livestock
or aquacultural operation.
(jj) 'File number' means the number assigned to an initial
financing statement pursuant to ORS 79.0519 (1).
(kk) 'Filing office' means an office designated in ORS 79.0501
as the place to file a financing statement.
(LL) 'Filing-office rule' means a rule adopted pursuant to ORS
79.0526.
(mm) 'Financing statement' means a record or records composed
of an initial financing statement and any filed record relating
to the initial financing statement.
(nn) 'Fixture filing' means the filing of a financing statement
covering goods that are or are to become fixtures and satisfying
ORS 79.0502 (1) and (2). The term includes the filing of a
financing statement covering goods of a transmitting utility
which are or are to become fixtures.
(oo) 'Fixtures' means goods that have become so related to
particular real property that an interest in them arises under
real property law. The term does not include portable irrigation
equipment including movable pipe, pumps, electrical pump panels,
pump columns, electrical wire, wheel lines, center pivots and
handlines. The term includes domestic pumps, domestic pump wire,
domestic pump panels, domestic pump columns, and buried
irrigation equipment including buried pipe, buried electrical
wire and all buried well casings.
(pp) 'General intangible' means any personal property,
including things in action, other than accounts, chattel paper,
commercial tort claims, deposit accounts, documents, goods,
instruments, investment property, letter-of-credit rights,
letters of credit, money and oil, gas or other minerals before
extraction. The term includes payment intangibles and software.
(qq) 'Good faith' means honesty in fact and the observance of
reasonable commercial standards of fair dealing.
(rr) 'Goods' means all things that are movable when a security
interest attaches. The term includes (i) fixtures, (ii) standing
timber that is to be cut and removed under a conveyance or
contract for sale, (iii) the unborn young of animals, (iv) crops
grown, growing or to be grown, even if the crops are produced on
trees, vines or bushes, and (v) manufactured homes. The term
also includes a computer program embedded in goods and any
supporting information provided in connection with a transaction
relating to the program if (i) the program is associated with the
goods in such a manner that it customarily is considered part of
the goods, or (ii) by becoming the owner of the goods, a person
acquires a right to use the program in connection with the goods.
The term does not include a computer program embedded in goods
that consist solely of the medium in which the program is
embedded. The term also does not include accounts, chattel paper,
commercial tort claims, deposit accounts, documents, general
intangibles, instruments, investment property, letter-of-credit
rights, letters of credit, money or oil, gas or other minerals
before extraction.
(ss) 'Governmental unit' means a subdivision, agency,
department, county, parish, municipality or other unit of the
government of the United States, a state or a foreign country.
The term includes an organization having a separate corporate
existence if the organization is eligible to issue debt on which
interest is exempt from income taxation under the laws of the
United States.
(tt) 'Health-care-insurance receivable' means an interest in or
claim under a policy of insurance which is a right to payment of
a monetary obligation for health-care goods or services provided.
(uu) 'Instrument' means a negotiable instrument or any other
writing that evidences a right to the payment of a monetary
obligation, is not itself a security agreement or lease, and is
of a type that in ordinary course of business is transferred by
delivery with any necessary indorsement or assignment. The term
does not include (i) investment property, (ii) letters of credit
or (iii) writings that evidence a right to payment arising out of
the use of a credit or charge card or information contained on or
for use with the card.
(vv) 'Inventory' means goods, other than farm products, which:
(A) Are leased by a person as lessor;
(B) Are held by a person for sale or lease or to be furnished
under a contract of service;
(C) Are furnished by a person under a contract of service; or
(D) Consist of raw materials, work in process, or materials
used or consumed in a business.
(ww) 'Investment property' means a security, whether
certificated or uncertificated, security entitlement, securities
account, commodity contract or commodity account.
(xx) 'Jurisdiction of organization,' with respect to a
registered organization, means the jurisdiction under whose law
the organization is organized.
(yy) 'Letter-of-credit right' means a right to payment or
performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of a
beneficiary to demand payment or performance under a letter of
credit.
(zz) 'Lien creditor' means:
(A) A creditor that has acquired a lien on the property
involved by attachment, levy or the like;
(B) An assignee for benefit of creditors from the time of
assignment;
(C) A trustee in bankruptcy from the date of the filing of the
petition; or
(D) A receiver in equity from the time of appointment.
(aaa) 'Manufactured home' means a structure, transportable in
one or more sections, which, in the traveling mode, is eight body
feet or more in width or 40 body feet or more in length, or, when
erected on site, is 320 or more square feet, and which is built
on a permanent chassis and designed to be used as a dwelling with
or without a permanent foundation when connected to the required
utilities, and includes the plumbing, heating, air-conditioning
and electrical systems contained therein. The term includes any
structure that meets all of the requirements of this paragraph
except the size requirements and with respect to which the
manufacturer voluntarily files a certification required by the
United States Secretary of Housing and Urban Development and
complies with the standards established under Title 42 of the
United States Code.
(bbb) 'Manufactured-home transaction' means a secured
transaction:
(A) That creates a purchase-money security interest in a
manufactured home, other than a manufactured home held as
inventory; or
(B) In which a manufactured home, other than a manufactured
home held as inventory, is the primary collateral.
(ccc) 'Mortgage' means a consensual interest in real property,
including fixtures, which secures payment or performance of an
obligation.
(ddd) 'New debtor' means a person that becomes bound as debtor
under ORS 79.0203 (4) by a security agreement previously entered
into by another person.
(eee) 'New value' means (i) money, (ii) money's worth in
property, services or new credit, or (iii) release by a
transferee of an interest in property previously transferred to
the transferee. The term does not include an obligation
substituted for another obligation.
(fff) 'Noncash proceeds' means proceeds other than cash
proceeds.
(ggg) 'Obligor' means a person that, with respect to an
obligation secured by a security interest in or an agricultural
lien on the collateral, (i) owes payment or other performance of
the obligation, (ii) has provided property other than the
collateral to secure payment or other performance of the
obligation, or (iii) is otherwise accountable in whole or in part
for payment or other performance of the obligation. The term does
not include issuers or nominated persons under a letter of
credit.
(hhh) 'Original debtor,' except as used in ORS 79.0310 (3),
means a person that, as debtor, entered into a security agreement
to which a new debtor has become bound under ORS 79.0203 (4).
(iii) 'Payment intangible' means a general intangible under
which the account debtor's principal obligation is a monetary
obligation.
(jjj) 'Person related to,' with respect to an individual,
means:
(A) The spouse of the individual;
(B) A brother, brother-in-law, sister or sister-in-law of the
individual;
(C) An ancestor or lineal descendant of the individual or the
individual's spouse; or
(D) Any other relative, by blood or marriage, of the individual
or the individual's spouse who shares the same home with the
individual.
(kkk) 'Person related to,' with respect to an organization,
means:
(A) A person directly or indirectly controlling, controlled by,
or under common control with the organization;
(B) An officer or director of, or a person performing similar
functions with respect to, the organization;
(C) An officer or director of, or a person performing similar
functions with respect to, a person described in subparagraph (A)
of this paragraph;
(D) The spouse of an individual described in subparagraph (A),
(B) or (C) of this paragraph; or
(E) An individual who is related by blood or marriage to an
individual described in subparagraph (A), (B), (C) or (D) of this
paragraph and shares the same home with the individual.
(LLL) 'Proceeds,' except as used in ORS 79.0609 (2), means the
following property:
(A) Whatever is acquired upon the sale, lease, license,
exchange or other disposition of collateral;
(B) Whatever is collected on, or distributed on account of,
collateral;
(C) Rights arising out of collateral;
(D) To the extent of the value of collateral, claims arising
out of the loss, nonconformity or interference with the use of,
defects or infringement of rights in, or damage to, the
collateral; or
(E) To the extent of the value of collateral and to the extent
payable to the debtor or the secured party, insurance payable by
reason of the loss or nonconformity of, defects or infringement
of rights in, or damage to, the collateral.
(mmm) 'Promissory note' means an instrument that evidences a
promise to pay a monetary obligation, does not evidence an order
to pay, and does not contain an acknowledgment by a bank that the
bank has received for deposit a sum of money or funds.
(nnn) 'Proposal' means a record authenticated by a secured
party which includes the terms on which the secured party is
willing to accept collateral in full or partial satisfaction of
the obligation it secures pursuant to ORS 79.0620, 79.0621 and
79.0622.
(ooo) 'Public-finance transaction' means a secured transaction
in connection with which:
(A) Debt securities are issued;
(B) All or a portion of the securities issued have an initial
stated maturity of at least 20 years; and
(C) The debtor, obligor, secured party, account debtor or other
person obligated on collateral, assignor or assignee of a secured
obligation, or assignor or assignee of a security interest is a
state or a governmental unit of a state.
(ppp) 'Pursuant to commitment,' with respect to an advance made
or other value given by a secured party, means pursuant to the
secured party's obligation, whether or not a subsequent event of
default or other event not within the secured party's control has
relieved or may relieve the secured party from its obligation.
(qqq) 'Record,' except as used in 'for record,' 'of record,'
'record or legal title' and 'record owner,' means information
that is inscribed on a tangible medium or which is stored in an
electronic or other medium and is retrievable in perceivable
form.
(rrr) 'Registered organization' means an organization organized
solely under the law of a single state or the United States and
as to which the state or the United States is required by statute
or regulation to maintain a public record showing the
organization to have been organized.
(sss) 'Secondary obligor' means an obligor to the extent that:
(A) The obligor's obligation is secondary; or
(B) The obligor has a right of recourse with respect to an
obligation secured by collateral against the debtor, another
obligor, or property of either.
(ttt) 'Secured party' means:
(A) A person in whose favor a security interest is created or
provided for under a security agreement, whether or not any
obligation to be secured is outstanding;
(B) A person that holds an agricultural lien;
(C) A consignor;
(D) A person to which accounts, chattel paper, payment
intangibles or promissory notes have been sold;
(E) A trustee, indenture trustee, agent, collateral agent or
other representative in whose favor a security interest or
agricultural lien is created or provided for; or
(F) A person that holds a security interest arising under ORS
72.4010, 72.5050, 72.7110 (3), 72A.5080 (5), 74.2100 or 75.1180.
(uuu) 'Security agreement' means an agreement that creates or
provides for a security interest.
(vvv) 'Send,' in connection with a record or notification,
means:
(A) To deposit in the mail, deliver for transmission, or
transmit by any other usual means of communication, with postage
or cost of transmission provided for, addressed to any address
reasonable under the circumstances; or
(B) To cause the record or notification to be received within
the time that it would have been received if properly sent under
subparagraph (A) of this paragraph.
(www) 'Software' means a computer program and any supporting
information provided in connection with a transaction relating to
the program. The term does not include a computer program that is
included in the definition of goods.
(xxx) 'State' means a state of the United States, the District
of Columbia, Puerto Rico, the United States Virgin Islands or any
territory or insular possession subject to the jurisdiction of
the United States.
(yyy) 'Supporting obligation' means a letter-of-credit right or
secondary obligation that supports the payment or performance of
an account, chattel paper, a document, a general intangible, an
instrument or investment property.
(zzz) 'Tangible chattel paper' means chattel paper evidenced by
a record or records consisting of information that is inscribed
on a tangible medium.
(aaaa) 'Termination statement' means an amendment of a
financing statement which:
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates either that it is a termination statement or that
the identified financing statement is no longer effective.
(bbbb) 'Transmitting utility' means { - a person - } { + an
organization + } primarily engaged in the business of:
(A) Operating a railroad, subway, street railway or trolley
bus;
(B) Transmitting communications electrically,
electromagnetically or by light;
(C) Transmitting goods by pipeline or sewer; or
(D) Transmitting or producing and transmitting electricity,
steam, gas or water.
(2) The following definitions in other sections apply to this
chapter:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
'
Applicant'
ORS 75.1020
'
Beneficiary'
ORS 75.1020
'
Broker'
ORS 78.1020
'
Certificated security'
ORS 78.1020
'
Check'
ORS 73.0104
'
Clearing corporation'
ORS 78.1020
'
Contract for sale'
ORS 72.1060
'
Customer'
ORS 74.1040
'
Entitlement holder'
ORS 78.1020
'
Financial asset'
ORS 78.1020
'
Holder in due course'
ORS 73.0302
'
Issuer'
(with respect
to a letter of credit or
letter-of-credit rigORS 75.1020
'
Issuer'
(with respect
to a security) ORS 78.2010
'
Lease'
ORS 72A.1030
'
Lease agreement'
ORS 72A.1030
'
Lease contract'
ORS 72A.1030
'
Leasehold interest'
ORS 72A.1030
'
Lessee'
ORS 72A.1030
'
Lessee in ordinary course
of business'
ORS 72A.1030
'
Lessor'
ORS 72A.1030
'
Lessor's residual
interest'
ORS 72A.1030
'
Letter of credit'
ORS 75.1020
'
Merchant'
ORS 72.1040
'
Negotiable instrument'
ORS 73.0104
'
Nominated person'
ORS 75.1020
'
Note'
ORS 73.0104
'
Proceeds of a letter
of credit'
ORS 75.1140
'
Prove'
ORS 73.0103
'
Sale'
ORS 72.1060
'
Securities intermediary'
ORS 78.1020
'
Security'
ORS 78.1020
'
Security certificate'
ORS 78.1020
'
Security entitlement'
ORS 78.1020
'
Uncertificated security'
ORS 78.1020
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(3) ORS chapter 71 contains general definitions and principles
of construction and interpretation applicable throughout this
chapter.
SECTION 2. ORS 79.0516 is amended to read:
79.0516. (1) Except as otherwise provided in subsection (2) of
this section, communication of a record to and receipt by a
filing office and tender of the filing fee or acceptance of the
record by the filing office constitutes filing.
(2) Filing does not occur with respect to a record that a
filing office refuses to accept because:
(a) The record is not communicated by a method or medium of
communication authorized by the filing office;
(b) An amount equal to or greater than the applicable filing
fee is not tendered;
(c) The filing office is unable to index the record because:
(A) In the case of an initial financing statement, the record
does not provide a name for the debtor;
(B) In the case of an amendment or correction statement, the
record:
(i) Does not identify the initial financing statement as
required by ORS 79.0512 or 79.0518, as applicable; or
(ii) Identifies an initial financing statement whose
effectiveness has lapsed under ORS 79.0515 (1) to (7) and the
filing office is that described in ORS 79.0501 (1)(b);
(C) In the case of an initial financing statement that provides
the name of a debtor identified as an individual or an amendment
that provides a name of a debtor identified as an individual
which was not previously provided in the financing statement to
which the record relates, the record does not identify the
debtor's last name; or
(D) In the case of a record filed or recorded in the filing
office described in ORS 79.0501 (1)(a), the record does not
provide a sufficient description of the real property to which it
relates;
(d) In the case of an initial financing statement or an
amendment that adds a secured party of record, the record does
not provide a name and mailing address for the secured party of
record;
(e) In the case of an initial financing statement or an
amendment that provides a name of a debtor which was not
previously provided in the financing statement to which the
amendment relates, the record does not:
(A) Provide a mailing address for the debtor, unless the
initial financing statement or amendment is included in a
mortgage and the filing office is that described in ORS 79.0501
(1)(a);
(B) Indicate whether the debtor is an individual or an
organization, unless the initial financing statement or amendment
is included in a mortgage and the filing office is that described
in ORS 79.0501 (1)(a); or
(C) If the filing office is that described in ORS 79.0501
(1)(b) and the financing statement indicates that the debtor is
an organization, provide:
(i) A type of organization for the debtor;
(ii) A jurisdiction of organization for the debtor or, as an
alternative when the debtor is not a registered organization, an
indication that the debtor is not a registered organization; or
(iii) An organizational identification number for the debtor or
indicate that the debtor has none;
(f) In the case of an assignment reflected in an initial
financing statement under ORS 79.0514 (1) or an amendment filed
under ORS 79.0514 (2), the record does not provide a name and
mailing address for the assignee; { - or - }
(g) In the case of a continuation statement, the record is not
filed within the six-month period prescribed by ORS 79.0515 (4)
and the filing office is that described in ORS 79.0501
(1)(b) { + ; or
(h) In the case of a record presented for filing at the filing
office described in ORS 79.0501 (1)(b), the filing office
determines that the record does not create an enforceable
indebtedness or is otherwise intended for an improper purpose,
such as to hinder, harass or otherwise wrongfully interfere with
any person + }.
(3) For purposes of subsection (2) of this section:
(a) A record does not provide information if the filing office
is unable to read or decipher the information; and
(b) A record that does not indicate that it is an amendment or
identify an initial financing statement to which it relates, as
required by ORS 79.0512, 79.0514 or 79.0518, is an initial
financing statement.
(4) A record that is communicated to and received by the filing
office with tender of the filing fee under subsection (1) of this
section, but which the filing office refuses to accept for a
reason other than one set forth in subsection (2) of this
section, is effective as a filed record except as against a
purchaser of the collateral which gives value in reasonable
reliance upon the absence of the record from the files.
SECTION 3. ORS 79.0518 is amended to read:
79.0518. (1) 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.
(2) A correction statement must:
(a) Identify the record to which it relates by the file number
assigned to the initial financing statement to which the record
relates;
(b) Indicate that it is a correction statement;
(c) 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 { + . A correction statement that is subject to
the provisions of subsection (3) of this section must include a
written certification, under oath, by the person filing the
statement that the contents of the statement are true and
accurate to the best of the person's knowledge + }; and
(d) Indicate the name of the debtor and the secured party.
{ + (3) When a correction statement alleges that a previously
filed record was wrongfully filed and should have been refused
under ORS 79.0516 (2)(h), the filing office shall, without undue
delay, determine whether the contested record was wrongfully
filed and should have been refused. To determine whether the
record was wrongfully filed, the filing office may require the
person filing the correction statement and the secured party to
provide any additional relevant information requested by the
filing office, including an original or a copy of any security
agreement that is related to the record. If the filing office
finds that the record was wrongfully filed and should have been
refused under ORS 79.0516 (2)(h), the filing office shall cancel
the record and may redact the filing office's records to reflect
the cancellation. A cancelled record is void. + }
{ - (3) - } { + (4) Except as provided in subsection (3) of
this section, + } the filing of a correction statement does not
affect the effectiveness of an initial financing statement or
other filed record.
SECTION 4. ORS 79.0520 is amended to read:
79.0520. (1) A filing office shall refuse to accept a record
for filing for a reason set forth in ORS 79.0516 (2) and may
refuse to accept a record for filing only for a reason set forth
in ORS 79.0516 (2).
(2) If a filing office refuses to accept a record for filing
{ + or cancels a record under ORS 79.0518 (3) + }, it shall
communicate to the person that presented the record the fact of
and reason for the refusal { + or cancellation + } and the date
and time the record would have been filed had the filing office
accepted it. The communication must be made at the time and in
the manner prescribed by filing-office rule but, in the case of a
filing office described in ORS 79.0501 (1)(b), in no event more
than two business days after the filing office receives { + or
cancels + } the record or, if the record is delivered by mail,
four business days after the filing office receives { + or
cancels + } the record.
(3) A filed financing statement satisfying ORS 79.0502 (1) and
(2) is effective, even if the filing office is required to refuse
to accept it for filing under subsection (1) of this section.
However, ORS 79.0338 applies to a filed financing statement
providing information described in ORS 79.0516 (2)(e) which is
incorrect at the time the financing statement is filed.
(4) If a record communicated to a filing office provides
information that relates to more than one debtor, ORS 79.0501 to
79.0528 apply as to each debtor separately.
{ + (5)(a) If the filing office described in ORS 79.0501
(1)(b) refuses to accept a record for filing under ORS 79.0516
(2)(h) or cancels a wrongfully filed record under ORS 79.0518
(3), the secured party may file a petition for review within 30
days after the refusal or cancellation in the Circuit Court for
Marion County. Filing a petition requesting to be allowed to file
the record starts the review. The petitioner shall file the
petition with the court and with the filing office and shall
attach the record to the petition. Upon the filing of the
petition, the court shall set the matter for hearing at the
earliest possible time and shall give the matter precedence over
all other matters except older matters of the same character. The
court shall allow the joinder of any interested party under the
Oregon Rules of Civil Procedure. The review shall proceed and be
conducted by the court without a jury.
(b) Upon consideration of the petition and other appropriate
pleadings, the court may order the filing office to file the
record or take other action the court considers appropriate,
including the entry of orders affirming, reversing or otherwise
modifying the decision of the filing office. The court may order
any other relief, including equitable relief, as may be
appropriate.
(c) The court's final decision may be appealed in the manner
provided by law for appeals from the circuit court in suits in
equity. + }
SECTION 5. { + The amendments to ORS 79.0102, 79.0516, 79.0518
and 79.0520 by sections 1 to 4 of this 2003 Act apply to records
filed with the Secretary of State before, on or after the
effective date of this 2003 Act. + }
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