8 Colo. Code Regs. § 1505-7-2

Current through Register Vol. 47, No. 22, November 25, 2024

Rule 8 CCR 1505-7-2 - Acceptance and Refusal of Records

2.1 Role of the filing office. The duties and responsibilities of the Secretary of State with respect to the administration of the UCC, the EFS Act, and the Lien Registration Act are ministerial. In accepting for filing or refusing to file a secured transaction record in accordance with these rules, the Secretary of State will not:

2.1.1 Determine the legal sufficiency or insufficiency of a record;

2.1.2 Determine whether a security interest in collateral exists;

2.1.3 Determine that information in the record is correct or incorrect, in whole or in part; or

2.1.4 Create a presumption that information in the record is correct or incorrect, in whole or in part.

2.2 Duty to file. A record that does not have a ground for refusal is filed upon receipt by the Secretary of State with the applicable filing fee. The Secretary of State will assign a file number to the secured transaction record upon receipt and promptly index the record in the secured transactions information management system.

2.3 Grounds for refusal of a UCC record. In accordance with section 4-9-516(b), C.R.S., the Secretary of State will refuse to file a UCC record for the following reasons:

2.3.1 Some or all of the information provided in the UCC record is illegible. Legibility is not limited to written expressions on paper. A filer must submit a legible record in the form, format, and medium required by the Secretary of State.

2.3.2 Lack of identification of initial financing statement. The Secretary of State will refuse an amendment or information statement if the record does not provide:

(a) A file number of a financing statement in the secured transactions information management system that has not lapsed;

(b) The date that the initial financing statement was filed; and

(c) For an amendment to an initial financing statement filed on or before December 31, 1999, an indication of the filing office in which the initial financing statement was filed.

2.3.3 Timeliness of continuation. The Secretary of State will refuse a continuation statement if it is received more than six months before the financing statement's lapse date or if it is received after the financing statement's lapse date. The Secretary of State will accept a continuation statement filing as follows:

(a) First day permitted. The first day on which a continuation statement may be filed is the day of the sixth month preceding the month in which the financing statement would lapse that corresponds to the day of the month on which the financing statement would lapse. If there is no such corresponding date, the first day on which a continuation statement may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse. Filing may not be possible on any date that the electronic filing application is unavailable, such as during regular system maintenance periods.

(b) Last day permitted. The last day on which a continuation statement may be filed is the date on which the financing statement lapses, although filing may not be possible on any date that the electronic filing application is unavailable, such as during regular system maintenance periods.

(c) Means of communication. The Secretary of State will only accept UCC records communicated by an authorized means in accordance with Rule 1.2.

2.3.4 Indecipherable. The Secretary of State will refuse an indecipherable UCC record that cannot be indexed. An indecipherable record may include, but is not limited to, a record that contains a special character outside of the character set provided in Rule 3.14, or an amendment that fails to indicate the type of amendment.

2.3.5 The Secretary of State will provide a notice to the filer indicating the missing, indecipherable, or invalid information, and that the filer must provide the missing information in order to file the record.

2.4 Grounds for refusal of an EFS record. The Secretary of State will refuse to accept an EFS or EFS amendment only for those reasons found in the UCC and in Rule 2.3.

2.5 Grounds for refusal of a notice of lien or notice of amendment. In addition to the reasons set forth in section 4-9.7-105, C.R.S., the Secretary of State will refuse to accept a notice of lien or notice of amendment for the following reasons:

2.5.1 Fee. The Secretary of State will refuse a notice of lien or notice of amendment if the record is submitted with less than the full filing fee and the fee is not tendered by a method authorized in Rule 1.8.

2.5.2 Means of communication. The Secretary of State will refuse a notice of lien or notice of amendment communicated to the Secretary of State by a means of communication not authorized in Rule 1.2.

2.5.3 Indecipherable. The Secretary of State will refuse a notice of lien or notice of amendment that is indecipherable and cannot be indexed. An indecipherable record may include, but is not limited to, a record that contains a special character outside of the character set provide in Rule 3.14, or a notice of amendment that fails to indicate the type of amendment.

2.6 Grounds for refusal of a record submitted via the system-to-system transfer method. The sole grounds for the Secretary of State's refusal to accept a secured transaction record for filing submitted via the system-to-system transfer method are enumerated in Rules 2.3 and 2.4.

2.7 Procedure upon refusal. During the submission process, the electronic filing application will indicate any deficiencies and will prompt the filer to provide all required information necessary to complete filing. The system will not accept a filing until all required information is provided.

2.8 Acknowledgment.

2.8.1 When a filer completes the electronic filing application, the system will display an image of the secured transaction record including the record information, file number, and the filing date and time.

2.8.2 When a filer completes a system-to-system transfer, the system will display the record information, file number, and the filing date and time.

2.9 Refusal errors. If a filer demonstrates to the satisfaction of the Secretary of State that a record was refused in error, the Secretary of State will file the record as of the filing date and time when the record was originally communicated for filing with a statement that the record was refused in error. The statement will be preserved for so long as the master record is preserved in the secured transactions information management system.

8 CCR 1505-7-2