Assigned to JUD                                                                                                                     FOR COMMITTEE

 

 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

FACT SHEET FOR h.b. 2645

 

false filings; UCC; penalty

Purpose

Increases, from a class 1 misdemeanor to a class 3 felony, the penalty for a person who causes an unauthorized uniform commercial code secured transaction record (record) to be filed and who knows that the record is unauthorized or contains a material misstatement or false claim.

Background

A person who files a record and who knows that the record is unauthorized or contains a material misstatement or false claim is liable to the affected party for: 1) the sum of at least $500 or for treble the actual damages caused by the record, whichever is more; and 2) reasonable attorney fees and costs of the action, if the person refuses to terminate or correct the record within 20 days after a written request from the affected party. Any affected party of an unauthorized record or record that contains a material misstatement or false claim may bring an action in the superior court for any temporary or permanent relief necessary to clear or correct the records. The party affected by the record may bring a separate special action to clear or otherwise correct the records of a filing office of the record or join the special action with an action for damages. An unauthorized person filing a record who knows the record is unauthorized or contains a material misstatement or false claim is guilty of a class 1 misdemeanor (A.R.S. § 47-9527).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Increases, from a class 1 misdemeanor to a class 3 felony, the penalty for a person who is statutorily not entitled to file a record, who causes a record to be filed in the records of a filing office and who knows or has reason to know that the record is unauthorized or contains a material misstatement or false claim.

2.   Makes technical changes.

3.   Becomes effective on the general effective date.

House Action

JUD                 2/16/22      DP     6-4-0-0

3rd Read          2/23/22                 32-27-1

Prepared by Senate Research

March 15, 2022

ZD/HW/sr