ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

 

HB 2645: false filings; UCC; penalty

Sponsor: Representative Diaz, LD 14

Committee on Judiciary

Overview

Changes the offense of filing a false claim or record relating to secured transactions with the secretary of state from a class 1 misdemeanor to a class 3 felony.

History

A person may file an initial financing statement or a statement that adds a debtor or collateral to a financing statement only if the debtor authorizes the record or the person holds an agricultural lien, included in collateral, that has become effective at the time of filing (A.R.S. § 47-9509.A).

Debtors bound by a security agreement may authorize a financial statement and an amendment covering the collateral and identifiable proceeds (A.R.S. § 47-9509.B).

Current statute asserts that a person who causes a record to be filed and has knowledge that said record is unauthorized, contains a false claim, or a misstatement is liable to pay the party affected by this record at least $500 or triple the sum of the actual damages caused by the record (A.R.S. § 47-9527). The affected party may bring a special action in superior court to receive the assistance necessary to correct these records. Courts may mandate any remedy, so long as it is legal or equitable and within the practical limitations of the filing system, to clear or correct the invalid record. The affected party may also recover reasonable attorney fees for the cost of legal action (A.R.S. § 47-9527).

Current statute classifies filing a false claim or record relating to secured transactions with the secretary of state as a class 1 misdemeanor (A.R.S. § 47-9527).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteReclassifies the offense of filing a false claim or record relating to secured transactions with the secretary of state from a class 1 misdemeanor to a class 3 felony. (Sec. 1)

2.   Makes technical changes. (Sec. 1)

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6.                     HB 2645

7.   Initials LC/ES        Page 0 Judiciary

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