Current through Register Vol. 47, No. 22, November 25, 2024
Rule 8 CCR 1505-7-4 - Filing and Records Management Procedures4.1 Duties and Authority of the Secretary of State. The Secretary of State will promptly file a record that conforms to these rules and will maintain and index all data exactly as the filer entered the data in the electronic filing application or the system-to-system transfer method. It is not within the Secretary of State's authority to determine the legal effectiveness of a secured transaction record. The filing of or refusal to file a record does not affect the validity of the record or relate to the correctness of the information in the record.4.2 Record indexing and other procedures for the electronic filing application or system-to-system transfer method. 4.2.1 Record review. The Secretary of State only determines if one or more grounds for refusal exist. If a ground for refusal exists, the electronic filing application will not allow the record to be submitted.4.2.2 Electronic attachments. The electronic filing application and system-to-system transfer method will allow a filer to include electronic attachments when filing a secured transaction record. The Secretary of State does not review the contents of electronic attachments and will not index or make the contents of electronic attachments searchable.4.3 Lapse date and time. A lapse date is calculated for each record opening document. The lapse date is the same day of the same month as the filing date in the final year of the initial statutorily determined period of effectiveness or subsequent statutorily determined period of effectiveness if a timely continuation statement is filed. A master record lapses at 12:00 AM of the day immediately following the lapse date. The lapse date for a record opening document filed on February 29 will be February 28 in the final year of the statutorily determined period of effectiveness.4.4 Verification of data entry. The Secretary of State is neither permitted nor authorized to provide legal advice or to make any judgment regarding the effectiveness or sufficiency of a secured transaction record. Entering data into the electronic filing application and determining whether the information included in a record is legally sufficient is the sole responsibility of the filer.4.5 Errors of the filing officer. The Secretary of State may correct errors made by filing office personnel when entering information in the secured transactions information management system at any time. If a correction is made, the Secretary of State will file a filing officer correction relating to the relevant master record stating the date of the correction and explaining the nature of the corrective action taken. The correction will be preserved for so long as the related master record is preserved in the secured transactions information management system.4.6 Errors other than filing office errors. Filer errors are the responsibility of the filer. A filer may file an amendment to correct an error or an information statement to disclose an error. The accuracy and completeness of information that is filed is ultimately the responsibility of the filer.4.7 Data entry of names - no designated fields. Only names entered in a designated name field in the electronic filing application or received in a designated name field through the system-to-system transfer method will be recorded as a name in the secured transactions information management system. This applies to all parties associated with a secured transaction record.4.8 Record opening document. A new master record will be created in the secured transactions information management system for each record opening document that is filed. The master record will use the file number of the financing statement and the date and time of filing of the record opening document.4.8.1 Debtor or owner information. The name and address of each debtor or owner that are legibly set forth in a secured transaction record will be entered into the related master record.4.8.2 Secured party or claimant information. The name and address of each secured party or claimant that is legibly set forth in a secured transaction record will be entered into the related master record.4.8.3 Indexing. Each master record will be indexed according to the name of the debtor(s) or owner(s) indicated on the secured transaction record and will be available for public inspection through the electronic searching application.4.9 Amendment. Each amendment that is filed will be indexed in the secured transactions information management system and will be linked to the related master record. 4.9.1 Indexing of an amendment. An amendment is associated with a master record so that the amendment can be retrieved by searching for the file number of the amendment, searching for a debtor or secured party designated in the amendment, or by searching for the related record opening document through the electronic searching application.4.9.2 Names and addresses. The name and address of each debtor/owner and secured party/claimant designated in an amendment will be entered into the secured transactions information management system and associated with the related master record.4.9.3 If the amendment is a continuation, a new lapse date will be established for the related master record. If no lapse date is associated with a master record, then the continuation will be made part of the master record and no other action will be taken.4.10 Information statement. Each information statement that is filed will be indexed in the secured transactions information management system. The information statement will be associated with the related master record in a manner that causes the information statement to be retrievable by searching for the file number of the information statement or by searching for the related record opening document.4.11 Master amendments. An amendment or information statement that would change or affect multiple secured transaction records with one filing is not possible at this time.4.12 Treatment of paper records. The Secretary of State will scan a paper record to create and store an electronic image of the record in the secured transactions information management system. Once the Secretary verifies that the image is correctly scanned, the Secretary will destroy the paper record.4.13 Database backups. The Secretary of State will make both daily incremental backups and weekly full backups of the database using magnetic tape or other appropriate data backup or data storage system.4.14 Records retention. The Secretary of State will retain data, including electronic image records, in the secured transactions information management system for at least two years after lapse.4.15 Hardship policy and procedures. A hardship filing by a method of communication other than electronic filing will be processed only if the request was preapproved by the Secretary of State, and the request is tendered with the appropriate fee. The Secretary of State will determine the policy and procedure used to accept and process a secured transaction record under a hardship request.4.16 Notice of bankruptcy. The Secretary of State takes no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding. Accordingly, secured transaction records will lapse as scheduled unless properly continued.