Committee hears testimony on bill to block and remove unauthorized UCC filings

The Civil Rights and Judiciary Committee on Jan. 30 heard testimony on House Bill 2640, which would create administrative procedures to address unauthorized Uniform Commercial Code (UCC) Article 9A financing-statement filings and impose criminal penalties for intentional misuse.

ED Adams, staff of the committee, said the bill ‘‘addresses unauthorized uniform commercial code filings under article 9 a’’ and laid out that the proposal lets the Department of Licensing refuse an initial or amended financing statement if it reasonably believes the filing was communicated with intent to harass or defraud the named debtor. Adams told the panel the bill ‘‘creates procedures for addressing unauthorized filings of financing statements’’ including a termination process and preservation of court oversight.

James Manuel, tribal and federal…