§ 9-518 — Claim Concerning Inaccurate or Wrongfully Filed Record

Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record.\n (a) Correction statement. A person may file in the filing office a\ncorrection statement with respect to a record indexed there under the\nperson's name if the person believes that the record is inaccurate or\nwas wrongfully filed.\n (b) Sufficiency of correction statement. A correction statement must:\n (1) identify the record to which it relates by:\n (A) the file number assigned to the initial financing\n statement to which the record relates; and\n (B) if the correction statement relates to a record filed in\n a filing office described in Section 9--501(a)(1), the\n date and time that the initial financing statement was\n filed and the information specified in Section 9--502(b);\n (2) indicate that it is a correction statement; and\n (3) provide the basis for the person's belief that the record is\n inaccurate and indicate the manner in which the person\n believes the record should be amended to cure any inaccuracy\n or provide the basis for the person's belief that the record\n was wrongfully filed.\n (c) Record not affected by correction statement. The filing of a\ncorrection statement does not affect the effectiveness of an initial\nfinancing statement or other filed record.\n (d) Special proceeding to redact or expunge a falsely filed or amended\nfinancing statement. (1) Provided he or she is an employee of the state\nor a political subdivision thereof, a person identified as a debtor in a\nfinancing statement filed pursuant to this subpart may bring a special\nproceeding against the named filer of such statement or any amendment\nthereof to invalidate the filing or amendment thereof where such\nstatement was falsely filed or amended; except that an attorney who is\nnot an employee of the state or a political subdivision thereof may also\nbring a special proceeding hereunder where he or she represents or has\nrepresented the respondent therein in a criminal court. Such special\nproceeding shall be governed by article four of the civil practice law\nand rules, and shall be commenced in the supreme court of Albany county,\nthe county of the petitioner's residence or a county within the judicial\ndistrict in which any property covered by the financing statement is\nlocated. No fee pursuant to article eighty of the civil practice law and\nrules shall be collected in such special proceeding.\n (2) The petition in a special proceeding hereunder shall plead that:\n (A) the financing statement filed or amended by the respondent\npursuant to section 9--509 was falsely filed or amended to retaliate\nfor: (i) the performance of the petitioner's official duties in his or\nher capacity as an employee of the state or a political subdivision\nthereof, or (ii) in the case of a special proceeding brought by an\nattorney who is not an employee of the state or a political subdivision\nthereof, to retaliate for the performance of the petitioner's duties in\nhis or her capacity as an attorney for the respondent in a criminal\ncourt; and\n (B) such financing statement does not relate to an interest in a\nconsumer-goods transaction, a commercial transaction, or any other\nactual transaction between the petitioner and the respondent; and\n (C) the collateral covered in such financing statement is the property\nof the petitioner; and\n (D) prompt redaction or invalidation of the financing statement is\nnecessary to avert or mitigate prejudice to the petitioner.\n (3) If the court makes a written finding that the allegations in\nparagraph two of this subsection are established, the court shall order\nthe expungement of such statement or its redaction in the public records\nin the office in which the financing statement is filed, as appropriate,\nand may grant any additional relief authorized by section 9--625. In\nsuch case, the court shall cause a copy of its order to be filed with\nthe secretary of state or other appropriate filing office pursuant to\nthis chapter. Upon a finding that the respondent has engaged in a\nrepeated pattern of false filings as found under this subsection, the\ncourt also may enjoin the respondent from filing or amending any further\nfinancing statement pursuant to this article without leave of the court.\nIf the respondent is incarcerated at the time the court issues an order\ncontaining such an injunction, the court shall cause the head of the\ncorrectional facility in which the respondent is incarcerated to receive\na copy of such determination. The head of such a facility shall cause a\ncopy of such order to be provided to the respondent. In any instances of\nthe issuance of such an injunction where the respondent has defaulted,\nthe court shall direct service of such injunction upon the respondent.\n