§ 554.9513A — Termination of wrongfully filed financing statement — reinstatement

Iowa § 554.9513A

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Trusted filer. “Trusted filer” means a person that does any of the following:
a. Regularly causes records to be communicated to the filing office for filing and has
provided the filing office with current contact information and information sufficient to
establish the person’s identity.
b. Satisfies either of the following conditions:
(1) The filing office has issued the person credentials for access to online filing services.
(2) The person has established a prepaid or direct debit account for payment of filing fees,
regardless of whether the account is used in a particular transaction.
2. Affidavit of wrongful filing. A person identified as debtor in a filed financing statement
may deliver to the filing office a notarized, sworn affidavit that identifies the financing
statement by file number, indicates the affiant’s mailing address, and states that the affiant
believes that the filed record identifying the affiant as debtor was not authorized to be filed
and was caused to be communicated to the filing office with the intent to harass or defraud
the affiant. The filing office may reject an affidavit that is incomplete or that it believes
was delivered to it with the intent to harass or defraud the secured party. The office of the
secretary of state shall adopt a form of affidavit for use under this section.
3. Termination statement by filing office. Subject to subsection 11, if an affidavit is
delivered to the filing office under subsection 2, the filing office shall promptly file a
termination statement with respect to the financing statement identified in the affidavit. The
termination statement must identify by its file number the initial financing statement to
which it relates and must indicate that it was filed pursuant to this section. A termination
statement filed under this subsection is not effective until ninety days after it is filed.
4. No fee charged or refunded. The filing office shall not charge a fee for the filing of
an affidavit under subsection 2 or a termination statement under subsection 3. The filing
office shall not return any fee paid for filing the financing statement identified in the affidavit,
whether or not the financing statement is reinstated under subsection 7.
5. Noticeofterminationstatement. Onthesamedaythatafilingofficefilesatermination
statement under subsection 3, the filing office shall send to the secured party of record for
the financing statement to which the termination statement relates a notice stating that the
termination statement has been filed and will become effective ninety days after filing. The
notice shall be sent by certified mail, return receipt requested, to the address provided for the
secured party of record in the financing statement with a copy sent by electronic mail to the
electronic mail address provided by the secured party of record, if any.
6. Administrative review — action for reinstatement. A secured party that believes in
good faith that the filed record identified in an affidavit delivered to the filing office under
subsection 2 was authorized to be filed and was not caused to be communicated to the filing
office with the intent to harass or defraud the affiant may:
a. Before the termination statement takes effect, request that the filing office conduct
an expedited review of the filed record and any documentation provided by the secured
party. The filing office may as a result of this review remove from the record the termination
statement filed by it under subsection 3 before the termination statement takes effect and
conduct an administrative review under subsection 11.
b. File an action against the filing office seeking reinstatement of the financing statement
to which the filed record relates at any time before the expiration of six months after the date
on which the termination statement filed under subsection 3 becomes effective. If the affiant
is not named as a defendant in the action, the secured party shall send a copy of the petition
to the affiant at the address indicated in the affidavit. The exclusive venue for the action shall
§554.9513A, UNIFORM COMMERCIAL CODE 202
be in the district court for the county where the filing office in which the financing statement
was filed is located. The action shall be considered by the court on an expedited basis.
7. Filingofficetofilenoticeofactionforreinstatement. Withintendaysafterbeingserved
with process in an action under subsection 6, the filing office shall file a notice indicating
that the action has been commenced. The notice must indicate the file number of the initial
financing statement to which the notice relates.
8. Action for reinstatement successful. If, in an action under subsection 6, the court
determines that the financing statement was authorized to be filed and was not caused to be
communicated to the filing office with the intent to harass or defraud the affiant, the court
shall order that the financing statement be reinstated. If an order of reinstatement is issued
by the court, the filing office shall promptly file a record that identifies by its file number
the initial financing statement to which the record relates and indicates that the financing
statement has been reinstated.
9. Effect of reinstatement. Upon the filing of a record reinstating a financing statement
under subsection 8, the effectiveness of the financing statement is reinstated and the
financing statement shall be considered never to have been terminated under this section
except as against a purchaser of the collateral that gives value in reasonable reliance upon
the termination. A continuation statement filed as provided in section 554.9515, subsection
4, after the effective date of a termination statement filed under subsection 3 or 11 becomes
effective if the financing statement is reinstated.
10. Liability for wrongful filing. If, in an action under subsection 6, the court determines
that the filed record identified in an affidavit delivered to the filing office under subsection 2
was caused to be communicated to the filing office with the intent to harass or defraud the
affiant, thefilingofficeandtheaffiantmayrecoverfromthesecuredpartythatfiledtheaction
thecostsandexpenses, includingreasonableattorneyfeesandthereasonableallocatedcosts
of internal counsel, that the filing office and the affiant incurred in the action. This recovery
is in addition to any recovery to which the affiant is entitled under section 554.9625.
11. Procedure for record filed by trusted filer. If an affidavit delivered to a filing office
under subsection 2 relates to a filed record communicated to the filing office by a trusted
filer, the filing office shall promptly send to the secured party of record a notice stating that
the affidavit has been delivered to the filing office and that the filing office is conducting an
administrative review to determine whether the record was caused to be communicated with
the intent to harass or defraud the affiant. The notice shall be sent by certified mail, return
receipt requested, to the address provided for the secured party in the financing statement
with a copy sent by electronic mail to the electronic mail address provided by the secured
party of record, if any, and a copy shall be sent in the same manner to the affiant. The
administrative review shall be conducted on an expedited basis and the filing office may
require the affiant and the secured party of record to provide any additional information that
the filing office deems appropriate. If the filing office concludes that the record was caused
to be communicated with the intent to harass or defraud the affiant, the filing office shall
promptly file a termination statement under subsection 2 that will be effective immediately
and send to the secured party of record the notice required by subsection 5. The secured
party may thereafter file an action for reinstatement under subsection 6 and the provisions
of subsections 7 through 10 are applicable.