Okla. Stat. tit. 12A § 1-9-520

Current through Laws 2024, c. 453.

Section 1-9-520 - Acceptance and refusal to accept record

(a) A filing office shall refuse to accept a record for filing for a reason set forth in subsection (b) of Section 1-9-516 of this title and may refuse to accept a record for filing only for a reason set forth in subsection (b) of Section 1-9-516 of this title.

(b) If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal 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 paragraph (2) of subsection (a) of Section 1-9-501 of this title, in no event more than two (2) business days after the filing office receives the record.

(c) A filed financing statement satisfying subsections (a) and (b) of Section 1-9-502 of this title is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, Section 1-9-338 of this title applies to a filed financing statement providing information described in paragraph (5) of subsection (b) of Section 1-9-516 of this title which is incorrect at the time the financing statement is filed.

(d) If a record communicated to a filing office provides information that relates to more than one debtor, this part applies to each debtor separately.

Okla. Stat. tit. 12A, § 1-9-520

Added by Laws 2000 , SB 1519, c. 371, § 98, eff. 7/1/2001.

Oklahoma Code Comment

This section is new and supplements the rejection issues as provided in section 9-516(b) , including standards for the Oklahoma UCC Central Filing Office, and provides a statutory method by which a debtor may correct a filed record believed to be inaccurate. It also makes reference to section 9-338 which provides protections to a subsequent purchaser or similar reliance party who gives value and reasonably relies on incorrect information.

Note that while section 9-520(a) provides for rejection of a financing statement that does not meet the "safe harbor" requirements of section 9- 516(b) (the financing statement must be rejected even if it meets the requirements for an effective financing statement at section 9-502 ) , section 9- 520(c) provides that if the financing statement is nonetheless accepted for filing, and meets the requirements of section 9-502 , it will be effective for perfection. Thus while revised sections 9-516(b) , 9-520(a) and 9-521 are relevant to determine whether the Filing Office must accept the financing statement for filing, once it has been accepted for filing its effectiveness for perfection and priority are governed by other provisions, such as sections 9-338, 9-502 , 9-517 and 9-520(c). See generally Christopher S. Bose, A Trap for the Unwary: Revised UCC Article 9's Deceptive Technical Guillotine for Financing Statements, 55 Consumer Fin. L.Q. Rep. 140 (2001).

The Oklahoma UCC Central Filing Office rules clearly state that the duties and responsibilities of the Oklahoma UCC Central Filing Office with respect to its administration of the UCC are ministerial. The filing officer does not determine the legal sufficiency or insufficiency of a document or a security interest in collateral, or the correctness of document information, but instead follows the strict grounds for refusal set forth in section 9-516(b) . Section 9-520(a) both prescribes and limits the basis upon which the Oklahoma UCC Central Filing Office must and may reject records. For the most part, the bases for rejection are limited to those that prevent the Oklahoma UCC Central Filing Office from dealing with a record that it receives because some of the requisite information is missing or cannot be determined, because the record is not communicated by an acceptable method, or because the filer fails to tender an amount equal to or greater than the filing fee. If the Oklahoma UCC Central Filing Office accepts a financing statement that does not give this information at all, the filing is still effective. The financing statement also generally is effective if the information is given but is incorrect; however, Section 9- 338 affords protection to buyers and holders of perfected security interests who give value in reasonable reliance upon the incorrect information.

For purposes of section 9-520 , the Oklahoma UCC Central Filing Office must provide prompt communication concerning any rejection, in no event exceeding two business days after the Oklahoma UCC Central Filing Office receives the record. The Oklahoma UCC Central Filing Office may reject an Initial Financing Statement or other record as to one named debtor but accept it as to another. In such an instance, the Oklahoma UCC Central Filing Office will file and index the correct debtor's record or information and will provide notice to the secured party of the refusal or rejection, as per the requirements of section 9-520(b) , of the rejected debtor portion.