(a) For each record filed in a filing office, the filing office shall:
(1) Assign a unique number to the filed record;
(2) Create a record that bears the number assigned to the filed record and the date and time of filing;
(3) Maintain the filed record for public inspection; and
(4) Index the filed record in accordance with subsections (c), (d), and (e) of this section.
(b) A file number must include a digit that:
(1) Is mathematically derived from or related to the other digits of the file number; and
(2) Aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error.
(c) Except as otherwise provided in subsections (d) and (e), the filing office shall:
(1) Index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and
(2) Index a record that provides a name of a debtor which was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.
(d) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index it:
(1) Under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and
(2) To the extent that the law of the District provides for indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.
(e) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under § 28:9-514(a) or an amendment filed under § 28:9- 514(b):
(1) Under the name of the assignor as grantor; and
(2) To the extent that the law of the District provides for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.
(f) The filing office shall maintain a capability:
(1) To retrieve a record by the name of the debtor and by the file number assigned to the initial financing statement to which the record relates; and
(2) To associate and retrieve with one another an initial financing statement and each filed record relating to the initial financing statement.
(g) The filing office may not remove a debtor's name from the index until one year after the effectiveness of a financing statement naming the debtor lapses under § 28:9-515 with respect to all secured parties of record.
(h) The filing office shall perform the acts required by subsections (a) through (e) at the time and in the manner prescribed by filing-office rule, but not later than 2 business days after the filing office receives the record in question.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
Former Sections 9-403(4), (7), 9-405(2).
Filing Office's Duties
Subsections (a) through (e) set forth the duties of the filing office with respect to filed records. Subsection (h), which is new, imposes a minimum standard of performance for those duties. Prompt indexing is crucial to the effectiveness of any filing system. An accepted but un-indexed record affords no public notice. Subsection (f) requires the filing office to maintain appropriate storage and retrieval facilities, and subsection (g) contains minimum requirements for the retention of records.
File Number
Subsection (a)(1) requires the filing office to assign a unique number to each filed record. That number is the "file number" only if the record is an initial financing statement. See Section 9-102.
Time of Filing
Subsection (a)(2) and Section 9-523 refer to the "date and time" of filing. The statutory text does not contain any instructions to a filing office as to how the time of filing is to be determined. The method of determining or assigning a time of filing is an appropriate matter for filing-office rules to address.
Related Records
Subsections (c) and (f) are designed to ensure that an initial financing statement and all filed records relating to it are associated with one another, indexed under the name of the debtor, and retrieved together. To comply with subsection (f), a filing office (other than a real-property recording office in a State that enacts subsection (f), Alternative B) must be capable of retrieving records in each of two ways: by the name of the debtor and by the file number of the initial financing statement to which the record relates.
Prohibition on Deleting Names from Index
This Article contemplates that the filing office will not delete the name of a debtor from the index until at least one year passes after the effectiveness of the financing statement lapses as to all secured parties of record. See subsection (g). This rule applies even if the filing office accepts an amendment purporting to delete or modify the name of a debtor or terminate the effectiveness of the financing statement. If an amendment provides a modified name for a debtor, the amended name should be added to the index, see subsection (c)(2), but the pre-amendment name should remain in the index.
Compared to former Article 9, the rule in subsection (g) increases the amount of information available to those who search the public records. The rule also contemplates that searchers-not the filing office-will determine the significance and effectiveness of filed records.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) A filing office shall refuse to accept a record for filing for a reason set forth in § 28:9-516(b) and may refuse to accept a record for filing only for a reason set forth in § 28:9-516(b).
(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 no event more than 2 business days after the filing office receives the record.
(c) A filed financing statement satisfying § 28:9-502(a) and (b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, § 28:9-338 applies to a filed financing statement providing information described in § 28:9-516(b)(5) 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 1 debtor, this part applies as to each debtor separately.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New.
Refusal to Accept Record for Filing
In some States, filing offices considered themselves obligated by former Article 9 to review the form and content of a financing statement and to refuse to accept those that they determine are legally insufficient. Some filing offices imposed requirements for or conditions to filing that do not appear in the statute. Under this section, the filing office is not expected to make legal judgments and is not permitted to impose additional conditions or requirements.
Subsection (a) both prescribes and limits the bases upon which the filing office must and may reject records by reference to the reasons set forth in Section 9-516(b). For the most part, the bases for rejection are limited to those that prevent the filing office from dealing with a record that it receives-because some of the requisite information (e.g., the debtor's name) is missing or cannot be deciphered, because the record is not communicated by a method (e.g., it is MIME-rather than UU-encoded) or medium (e.g., it is written rather than electronic) that the filing office accepts, or because the filer fails to tender an amount equal to or greater than the filing fee.
Consequences of Accepting Rejectable Record
Section 9-516(b) includes among the reasons for rejecting an initial financing statement the failure to give certain information that is not required as a condition of effectiveness. In conjunction with Section 9-516(b)(5), this section requires the filing office to refuse to accept a financing statement that is legally sufficient to perfect a security interest under Section 9-502 but does not contain a mailing address for the debtor, does not disclose whether the debtor is an individual or an organization (e.g., a partnership or corporation) or, if the debtor is an organization, does not give certain specified information concerning the organization. The information required by Section 9-516(b)(5) assists searchers in weeding out "false positives," i.e., records that a search reveals but which do not pertain to the debtor in question. It assists filers by helping to ensure that the debtor's name is correct and that the financing statement is filed in the proper jurisdiction.
If the filing office accepts a financing statement that does not give this information at all, the filing is fully effective. Section 9-520(c). 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.
Filing Office's Duties with Respect to Rejected Record
Subsection (b) requires the filing office to communicate the fact of rejection and the reason therefor within a fixed period of time. Inasmuch as a rightfully rejected record is ineffective and a wrongfully rejected record is not fully effective, prompt communication concerning any rejection is important.
Partial Effectiveness of Record
Under subsection (d), the provisions of this Part apply to each debtor separately. Thus, a filing office may reject an initial financing statement or other record as to one named debtor but accept it as to the other.
Example: An initial financing statement is communicated to the filing office. The financing statement names two debtors, John Smith and Jane Smith. It contains all of the information described in Section 9-516(b)(5) with respect to John but lacks some of the information with respect to Jane. The filing office must accept the financing statement with respect to John, reject it with respect to Jane, and notify the filer of the rejection.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) A filing office that accepts written records for filing may not refuse to accept a written initial financing statement in the following form, except for a reason set forth in § 28:9-516(b):
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
-------------------------------------------------------
A. NAME AND PHONE OF CONTACT AT FILER [optional]
-------------------------------------------------------
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
____ ____
____ ____ THE ABOVE SPACE IS FOR
FILING OFFICE USE
ONLY
-------------------------------------------------------------------------------
1. DEBTOR'S EXACT FULL LEGAL NAME--insert only one debtor name (1a or 1b)-
Do not abbreviate or combine names
-------------------------------------------------------------------------
1a. ORGANIZATION'S NAME
OR -------------------------------------------------------------------------
1b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
1c. MAILING ADDRESS CITY STATE POSTAL COUNTRY
CODE
-------------------------------------------------------------------------------
1d. TAX ID. ADD'L INFO. RE 1e. TYPE OF 1f. JURISD- 1g. ORGANIZATIONAL ID
NO. SSN OR ORGANIZATION ORGANIZATION ICTION OF No., if any
EIN DEBTOR ORGANIZA-
TION
[ ] NONE
-------------------------------------------------------------------------------
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME--insert only one debtor name
(2a or 2b)--do not abbreviate or combine names
-------------------------------------------------------------------------
2a. ORGANIZATION'S NAME
OR -------------------------------------------------------------------------
2b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
2c. MAILING ADDRESS CITY STATE POSTAL COUNTRY
CODE
-------------------------------------------------------------------------------
2d. TAX ID. ADD'L INFO. RE 2e. TYPE OF 2f. JURISD- 2g. ORGANIZATIONAL ID
NO. SSN OR ORGANIZATION ORGANIZATION ICTION OF No., if any
EIN DEBTOR ORGANIZA-
TION
[ ] NONE
-------------------------------------------------------------------------------
3. SECURED PARTY'S NAME (or name of total assignee of assignor S/P)-insert
only one secured party name (3a or 3b)
-------------------------------------------------------------------------
3a. ORGANIZATION'S NAME
OR -------------------------------------------------------------------------
3b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
3c. MAILING CITY STATE POSTAL CODE COUNTRY
ADDRESS
-------------------------------------------------------------------------------
4. This FINANCING STATEMENT covers the following collateral:
-------------------------------------------------------------------------------
5. ALTERNATIVE DESIGNATION [if applicable]: [ ] LESSEE/LESSOR [ ]
CONSIGNEE/CONSIGNOR [ ] BAILEE/BAILOR [ ] SELLER/BUYER [ ] AG. LIEN [ ]
NON-UCC FILING
-------------------------------------------------------------------------------
6. [ ] This FINANCING STATEMENT is to be filed 7. Check to REQUEST SEARCH
(for record) (or recorded) in the REAL REPORT(S) on Debtor(s)
ESTATE RECORDS. Attach Addendum [if [ADDITIONAL FEE] [optional]
applicable] [ ] All Debtors [ ] Debtor 1
[ ] Debtor 2
-------------------------------------------------------------------------------
8. OPTIONAL FILER REFERENCE DATA
-------------------------------------------------------------------------------
FILING OFFICE COPY--NATIONAL UCC FILING STATEMENT (FORM UCC 1) (REV. 07/29/98)
[Back of form]
UCC FINANCING STATEMENT ADDENDUM
FOLLOW INSTRUCTIONS instructions (front and
back) CAREFULLY.
------------------------------------------------
9. NAME OF FIRST DEBTOR (1a or 1b) ON RELATED
FINANCING STATEMENT
------------------------------------------------
9a. ORGANIZATION'S NAME
OR
------------------------------------------------
9b. INDIVIDUAL'S FIRST NAME MIDDLE NAME,
LAST NAME SUFFIX
------------------------------------------------
10. MISCELLANEOUS:
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
-------------------------------------------------------------------------------
ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME--insert only one name (11a or
11b)--do not abbreviate or combine names
----------------------------------------------------------------------------
11a. ORGANIZATION'S NAME
OR ----------------------------------------------------------------------------
11b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
11c. MAILING ADDRESS CITY STATE POSTAL COUNTRY
CODE
-------------------------------------------------------------------------------
11d. TAX ADD'L INFO. RE 11e. TYPE OF 11f. JURIS- 11g. ORGANIZATIONAL ID
ID. NO. ORGANIZATION ORGANIZATION DICTION No., if any
SSN OR DEBTOR OF ORGAN-
EIN IZATION
[ ] NONE
-------------------------------------------------------------------------------
[ ] ADDITIONAL SECURED PARTY'S or [ ] ASSIGNOR S/P'S NAME-insert only one
name (12a or 12b).
----------------------------------------------------------------------------
12a. ORGANIZATION'S NAME
OR ----------------------------------------------------------------------------
12b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
12c. MAILING ADDRESS CITY STATE POSTAL COUNTRY
CODE
-------------------------------------------------------------------------------
13. This FINANCING STATEMENT covers [ ] 16. Additional collateral
timber to be cut or [ ] as-extracted description:
collateral, or is filed as a [ ] fixture
filing.
14. Description of real estate:
15. Name and address of a RECORD OWNER of
the above-described real estate (if
Debtor does not have record interest):
-----------------------------------
17. Check only if applicable and
check only one box:
Debtor is a [ ] Trust or [ ]
Trustee acting with respect to
property held in trust or [ ]
Decedent's Estate
-----------------------------------
18. Check only if applicable and
check only one box:
[ ] Debtor is a TRANSMITTING
UTILITY
[ ] Filed in connection with a
Manufactured-Home
Transaction--effective 30 years
[ ] Filed in connection with a
Public-Finance
Transaction--effective 30 years
-------------------------------------------------------------------------------
FILING OFFICE COPY--NATIONAL UCC FILING STATEMENT (FORM UCC 1Ad) (REV.
07/29/98)
(b) A filing office that accepts written records for filing may not refuse to accept a written financing statement amendment in the following form, except for a reason set forth in § 28:9-516(b):
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
------------------------------------------------------
A. NAME AND PHONE OF CONTACT AT FILER [optional]
------------------------------------------------------
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
____ ____
____ ____
THE ABOVE SPACE IS FOR
FILING OFFICE USE
ONLY
-------------------------------------------------------------------------------
1a. INITIAL FINANCING STATEMENT FILE NO. 1b. [ ] This FINANCING STATEMENT
AMENDMENT is to be filed (for
record) (or recorded) in the
REAL ESTATE RECORDS.
-------------------------------------------------------------------------------
2. [ ] TERMINATION: Effectiveness of the Financing Statement identified above
is terminated with respect to security interest(s) of the Secured Party
authorizing this Termination Statement.
-------------------------------------------------------------------------------
3. [ ] CONTINUATION: Effectiveness of the Financing Statement identified above
with respect to security interest(s) of the Secured Party authorizing this
Continuation Statement is continued for the additional period provided by
applicable law.
-------------------------------------------------------------------------------
4. [ ] ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and
address of assignee in item 7c; and also give name of assignor in item 9.
-------------------------------------------------------------------------------
5. AMENDMENT (PARTY INFORMATION): This Amendment affects [ ] Debtor or [ ]
Secured Party of record. Check only one of these two boxes. Also check one of
the following three boxes and provide appropriate information in items 6
and/or 7.
[ ] CHANGE name and/or address: Give current [ ] DELETE [ ] ADD name:
record name in item 6a or 6b; also give name: Give Complete item 7a
new name (if name change) in item 7a or 7b record name or 7b, and also
and/or new address (if address change) in to be item 7c; also
item 7c. deleted in complete items
item 6a or 7d-7g (if
6b. applicable).
-------------------------------------------------------------------------------
6. CURRENT RECORD INFORMATION:
--------------------------------------------------------------------------
6a. ORGANIZATION'S NAME
OR --------------------------------------------------------------------------
6b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
7. CHANGED (NEW) OR ADDED INFORMATION:
--------------------------------------------------------------------------
7a. ORGANIZATION'S NAME
OR --------------------------------------------------------------------------
7b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
7c. MAILING ADDRESS CITY STATE POSTAL COUNTRY
CODE
-------------------------------------------------------------------------------
7d. TAX ID. ADD'L INFO. RE 2e. TYPE OF 2f. JURISDI- 2g. ORGANIZATIONAL ID
NO. SSN ORGANIZATION ORGANIZATION CTION OF No., if any
OR EIN DEBTOR ORGANIZAT-
ION
[ ] NONE
-------------------------------------------------------------------------------
8. AMENDMENT (COLLATERAL CHANGE): check only one box
Describe collateral [ ] deleted or [ ] added, or give entire [ ] restated
collateral description, or describe collateral [ ] assigned.
-------------------------------------------------------------------------------
9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of
assignor, if this is an Assignment). If this is an Amendment authorized
by a Debtor which adds collateral or adds the authorizing Debtor, or if
this is a Termination authorized by a Debtor, check here [ ] and enter
name of DEBTOR authorizing this Amendment.
--------------------------------------------------------------------------
9a. ORGANIZATION'S NAME
OR --------------------------------------------------------------------------
9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
-------------------------------------------------------------------------------
10. OPTIONAL FILE REFERENCE DATA
-------------------------------------------------------------------------------
FILING OFFICE COPY--NATIONAL UCC FINANCING STATEMENT AMENDMENT (FORM UCC3)
(REV. 07/29/98)
[Back of form]
UCC FINANCING STATEMENT AMENDMENT ADDENDUM
FOLLOW INSTRUCTIONS (front and back) CAREFULLY.
-------------------------------------------------------------
11. INITIAL FINANCING STATEMENT FILE NO. (same as item 1a on
Amendment form)
-------------------------------------------------------------
12. NAME OF PARTY AUTHORIZING THIS AMENDMENT (same as item 9
on Amendment form)
-------------------------------------------------------------
12a. ORGANIZATION'S NAME
OR
-------------------------------------------------------------
12b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME,
SUFFIX
-------------------------------------------------------------
13. Use this space for additional information
THE ABOVE SPACE
IS FOR
FILING OFFICE
USE ONLY
--------------------------------------------------------
-------------------------------------------------------------------------------
FILING OFFICE COPY--NATIONAL UCC FINANCING STATEMENT AMENDMENT ADDENDUM (FORM
UCC3Ad) (REV. 07/29/98)
-------------------------------------------------------------------------------
(c) A form that a filing office may not refuse to accept under subsection (a) or (b) of this section must conform to the format prescribed for the form by the National Conference of Commissioners on Uniform State Laws.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New.
"Safe Harbor" Written Forms
Although Section 9-520 limits the bases upon which the filing office can refuse to accept records, this section provides sample written forms that must be accepted in every filing office in the country, as long as the filing office's rules permit it to accept written communications. By completing one of the forms in this section, a secured party can be certain that the filing office is obligated to accept it.
The forms in this section are based upon national financing statement forms that were in use under former Article 9. Those forms were developed over an extended period and reflect the comments and suggestions of filing officers, secured parties and their counsel, and service companies. The formatting of those forms and of the ones in this section has been designed to reduce error by both filers and filing offices.
A filing office that accepts written communications may not reject, on grounds of form or format, a filing using these forms. Although filers are not required to use the forms, they are encouraged and can be expected to do so, inasmuch as the forms are well designed and avoid the risk of rejection on the basis of form or format. As their use expands, the forms will rapidly become familiar to both filers and filing-office personnel. Filing offices may and should encourage the use of these forms by declaring them to be the "standard" (but not exclusive) forms for each jurisdiction, albeit without in any way suggesting that alternative forms are unacceptable.
The multi-purpose form in subsection (b) covers changes with respect to the debtor, the secured party, the collateral, and the status of the financing statement (termination and continuation). A single form may be used for several different types of amendments at once (e.g., both to change a debtor's name and continue the effectiveness of the financing statement).
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under § 28:9-515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and by using the file number assigned to the initial financing statement to which the record relates.
(b) Except to the extent that a statute governing disposition of public records provides otherwise, the filing office immediately may destroy any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with subsection (a).
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
Former Section 9-403(3), revised substantially.
Maintenance of Records
Section 9-523 requires the filing office to provide information concerning certain lapsed financing statements. Accordingly, subsection (a) requires the filing office to maintain a record of the information in a financing statement for at least one year after lapse. During that time, the filing office may not delete any information with respect to a filed financing statement; it may only add information. This approach relieves the filing office from any duty to determine whether to substitute or delete information upon receipt of an amendment. It also assures searchers that they will receive all information with respect to financing statements filed against a debtor and thereby be able themselves to determine the state of the public record.
The filing office may maintain this information in any medium. Subsection (b) permits the filing office immediately to destroy written records evidencing a financing statement, provided that the filing office maintains another record of the information contained in the financing statement as required by subsection (a).
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to § 28:9-519(a)(1) and the date and time of the filing of the record. However, if the person furnishes a copy of the record to the filing office, the filing office may instead:
(1) Note upon the copy the number assigned to the record pursuant to § 28:9- 519(a)(1) and the date and time of the filing of the record; and
(2) Send the copy to the person.
(b) If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides:
(1) The information in the record;
(2) The number assigned to the record pursuant to § 28:9-519(a)(1); and
(3) The date and time of the filing of the record.
(c) The filing office shall communicate or otherwise make available in a record the following information to any person that requests it:
(1) Whether there is on file on a date and time specified by the filing office, but not a date earlier than 3 business days before the filing office receives the request, any financing statement that:
(A) Designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request;
(B) Has not lapsed under § 28:9-515 with respect to all secured parties of record; and
(C) If the request so states, has lapsed under § 28:9-515 and a record of which is maintained by the filing office under § 28:9-522(a);
(2) The date and time of filing of each financing statement; and
(3) The information provided in each financing statement.
(d) In complying with its duty under subsection (c), the filing office may communicate information in any medium. However, if requested, the filing office shall communicate information by issuing a record that can be admitted into evidence in the courts of the District without extrinsic evidence of its authenticity.
(e) The filing office shall perform the acts required by subsections (a) through (d) at the time and in the manner prescribed by filing-office rule, but not later than 2 business days after the filing office receives the request.
(f) At least weekly, the Mayor shall offer to sell or license to the public on a nonexclusive basis, in bulk, copies of all records filed in it under this part, in every medium from time to time available to the filing office.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
Former Section 9-407; subsections (d) and (e) are new.
Filing Office's Duty to Provide Information
Former Section 9-407, dealing with obtaining information from the filing office, was bracketed to suggest to legislatures that its enactment was optional. Experience has shown that the method by which interested persons can obtain information concerning the public records should be uniform. Accordingly, the analogous provisions of this Article are not in brackets.
Most of the other changes from former Section 9-407 are for clarification, to embrace medium-neutral drafting, or to impose standards of performance on the filing office.
Acknowledgments of Filing
Subsections (a) and (b) require the filing office to acknowledge the filing of a record. Under subsection (a), the filing office is required to acknowledge the filing of a written record only upon request of the filer. Subsection (b) requires the filing office to acknowledge the filing of a non-written record even in the absence of a request from the filer.
Response to Search Request
Subsection (c)(3) requires the filing office to provide "the information contained in each financing statement" to a person who requests it. This requirement can be satisfied by providing copies, images, or reports. The requirement does not in any manner inhibit the filing office from also offering to provide less than all of the information (presumably for a lower fee) to a person who asks for less. Thus, subsection (c) accommodates the practice of providing only the type of record (e.g., initial financing statement, continuation statement), number assigned to the record, date and time of filing, and names and addresses of the debtor and secured party when a requesting person asks for no more (i.e., when the person does not ask for copies of financing statements). In contrast, the filing office's obligation under subsection (b) to provide an acknowledgment containing "the information contained in the record" is not defined by a customer's request. Thus unless the filer stipulates otherwise, to comply with subsection (b) the filing office's acknowledgment must contain all of the information in a record.
Subsection (c) assures that a minimum amount of information about filed records will be available to the public. It does not preclude a filing office from offering additional services.
Lapsed and Terminated Financing Statements
This section reflects the policy that terminated financing statements will remain part of the filing office's data base. The filing office may remove from the data base only lapsed financing statements, and then only when at least a year has passed after lapse. See Section 9-519(g). Subsection (c)(1)(C) requires a filing office to conduct a search and report as to lapsed financing statements that have not been removed from the data base, when requested.
Search by Debtor's Address
Subsection (c)(1)(A) contemplates that, by making a single request, a searcher will receive the results of a search of the entire public record maintained by any given filing office. Addition of the bracketed language in subsection (c)(1)(A) would permit a search report limited to financing statements showing a particular address for the debtor, but only if the search request is so limited. With or without the bracketed language, this subsection does not permit the filing office to compel a searcher to limit a request by address.
Medium of Communication; Certificates
Former Article 9 provided that the filing office respond to a request for information by providing a certificate. The principle of medium-neutrality would suggest that the statute not require a written certificate. Subsection (d) follows this principle by permitting the filing office to respond by communicating "in any medium." By permitting communication "in any medium," subsection (d) is not inconsistent with a system in which persons other than filing office staff conduct searches of the filing office's (computer) records.
Some searchers find it necessary to introduce the results of their search into evidence. Because official written certificates might be introduced into evidence more easily than official communications in another medium, subsection (d) affords States the option of requiring the filing office to issue written certificates upon request. The alternative bracketed language in subsection (d) recognizes that some States may prefer to permit the filing office to respond in another medium, as long as the response can be admitted into evidence in the courts of that State without extrinsic evidence of its authenticity.
Performance Standard
The utility of the filing system depends on the ability of searchers to get current information quickly. Accordingly, subsection (e) requires that the filing office respond to a request for information no later than two business days after it receives the request. The information contained in the response must be current as of a date no earlier than three business days before the filing office receives the request. See subsection (c)(1). The failure of the filing office to comply with performance standards, such as subsection (e), has no effect on the private rights of persons affected by the filing of records.
Sales of Records in Bulk
Subsection (f), which is new, mandates that the appropriate official or the filing office sell or license the filing records to the public in bulk, on a nonexclusive basis, in every medium available to the filing office. The details of implementation are left to filing-office rules.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
Delay by the filing office beyond a time limit prescribed by this part is excused if:
(1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office; and
(2) The filing office exercises reasonable diligence under the circumstances.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New; derived from Section 4-109.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) The Mayor shall promulgate rules, in accordance with subchapter I of Chapter 5 of Title 2, setting fees for filing and indexing initial financing statements and for other services rendered under this part.
(b) The rules promulgated under subsection (a) shall set a basic fee for filing and indexing an initial filing statement in cases in which the record is communicated electronically or by another nonwritten medium authorized by filing-office rule. If the record is communicated in writing and consists of one or 2 pages, the fee shall be 2 times the basic fee. If the record is in writing and consists of more than 2 pages, the fee shall be 4 times the basic fee.
(c) The number of names required to be indexed does not affect the amount of the fee in subsection (b).
(d) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under § 28:9-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
Various sections of former Part 4.
Fees
This section contains all fee requirements for filing, indexing, and responding to requests for information. Uniformity in the fee structure (but not necessarily in the amount of fees) makes this Article easier for secured parties to use and reduces the likelihood that a filed record will be rejected for failure to pay at least the correct amount of the fee. See Section 9- 516(b)(2).
The costs of processing electronic records are less than those with respect to written records. Accordingly, this section mandates a lower fee as an incentive to file electronically and imposes the additional charge (if any) for multiple debtors only with respect to written records. When written records are used, this Article encourages the use of the uniform forms in Section 9- 521. The fee for filing these forms should be no greater than the fee for other written records.
To make the relevant information included in a filed record more accessible once the record is found, this section mandates a higher fee for longer written records than for shorter ones. Finally, recognizing that financing statements naming more than one debtor are most often filed against a husband and wife, any additional charge for multiple debtors applies to records filed with respect to more than two debtors, rather than with respect to more than one.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
(a) The Mayor shall adopt and publish rules to implement this article. The filing-office rules must be adopted and published in accordance with subchapter I of Chapter 5 of Title 2.
(b) To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this part, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially this part, the Mayor, so far as is consistent with the purposes, policies, and provisions of this article, in adopting, amending, and repealing filing-office rules, shall:
(1) Consult with filing offices in other jurisdictions that enact substantially this part;
(2) Consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
(3) Take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this part.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New; subsection (b) derives in part from the Uniform Consumer Credit Code (1974).
Rules Required
Operating a filing office is a complicated business, requiring many more rules and procedures than this Article can usefully provide. Subsection (a) requires the adoption of rules to carry out the provisions of Article 9. The filing-office rules must be consistent with the provisions of the statute and adopted in accordance with local procedures. The publication requirement informs secured parties about filing-office practices, aids secured parties in evaluating filing-related risks and costs, and promotes regularity of application within the filing office.
Importance of Uniformity
In today's national economy, uniformity of the policies and practices of the filing offices will reduce the costs of secured transactions substantially. The International Association of Corporate Administrators (IACA), referred to in subsection (b), is an organization whose membership includes filing officers from every State. These individuals are responsible for the proper functioning of the Article 9 filing system and have worked diligently to develop model filing-office rules, with a view toward efficiency and uniformity.
Although uniformity is an important desideratum, subsection (a) affords considerable flexibility in the adoption of filing-office rules. Each State may adopt a version of subsection (a) that reflects the desired relationship between the statewide filing office described in Section 9-501(a)(2) and the local filing offices described in Section 9-501(a)(1) and that takes into account the practices of its filing offices. Subsection (a) need not designate a single official or agency to adopt rules applicable to all filing offices, and the rules applicable to the statewide filing office need not be identical to those applicable to the local filing office. For example, subsection (a) might provide for the statewide filing office to adopt filing-office rules, and, if not prohibited by other law, the filing office might adopt one set of rules for itself and another for local offices. Or, subsection (a) might designate one official or agency to adopt rules for the statewide filing office and another to adopt rules for local filing offices.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
The Mayor shall report annually on or before April 1 to the Council on the operation of the filing office. The report must contain a statement of the extent to which:
(1) The filing-office rules are not in harmony with the rules of filing offices in other jurisdictions that enact substantially this part and the reasons for these variations; and
(2) The filing-office rules are not in harmony with the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators, or any successor organization, and the reasons for these variations.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New; derived in part from the Uniform Consumer Credit Code (1974).
Duty to Report
This section is designed to promote compliance with the standards of performance imposed upon the filing office and with the requirement that the filing office's policies, practices, and technology be consistent and compatible with the policies, practices, and technology of other filing offices.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
