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#215240 - 07/24/04 03:28 PM Revised Article 9
Anonymous
Unregistered

When a UCC is filed, is it the financial institutions responsibility to make sure that the State filed it correctly. Such as, they typed in the name wrong in their data base.

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Article 9
#215241 - 07/26/04 08:53 PM Re: Revised Article 9
Little Sister Offline
100 Club
Joined: Sep 2002
Posts: 162
Iowa
My understanding is that it is the bank's responsibility to verify that there are no typo's. The state is immune to any lawsuits (at least that's what I was told several years ago.)

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#215242 - 09/01/04 12:29 AM Re: Revised Article 9
Susan Offline
Member
Joined: Jun 2003
Posts: 73
South Dakota
I understand revised article IX to state that an effective filing is one that can be retrieved by searching by debtor's name. We have made common practice to file our UCC's online, then perform the search to ensure that we have an effective filing. However, we are in South Dakota and have an awesome on-line filing system with free searches!

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#215243 - 01/11/05 09:07 PM Re: Revised Article 9
Anonymous
Unregistered

Answer Yes. The Bank is responsible for making sure the lien can be searched. If it can be searched and disclosed, then you are protected. We use title insurance to file it and they also insure it for a nominal fee.

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#215244 - 01/31/05 08:00 PM Re: Revised Article 9
Sam Ott Offline
Power Poster
Sam Ott
Joined: May 2001
Posts: 3,573
Norman, Ok, USA
You will need to check your state's version of RA9, but if the bank can prove that the filing was made using the correct name it will be effective even though the filing office made an error. That was the intent of the drafters of RA9. If the bank filed using an incorrect name, the filing is effective if a search under the correct name locates the filing. If it doesn't, the filing under the incorrect name is not effective. Bottom line - if the bank makes a mistake and files under the wrong name, it can still win if a search under the correct name reveals the filing. If the filing office makes a mistake, the bank is not penalized for the staff's error.
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Sam Ott
Associate Editor
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#1018602 - 08/13/08 04:41 AM Re: Revised Article 9 Sam Ott
Tom at HOME Offline
Diamond Poster
Joined: Oct 2005
Posts: 1,139
Also, RA 9 (9-516) list reasons a filing officer can legitimately reject a filing. If a filing officer rejects a filing for a reason other than one before in 9-516(b) such rejected filing is still effective except against a purchaser who gives new value. Errors of the filing officer do not accrue to you.

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