Lawsuits, liens, and other encumbrances.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Enrolled
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill increases the civil penalty for filing false lawsuits, liens, or encumbrances against public officials or employees from $5,000 to $15,000. It also defines ‘lien’ to include financing statements and prohibits filing financing statements without a valid basis. Furthermore, it requires the Secretary of State to notify debtors of filed financing statements and mandates that court fees paid by debtors be repaid to them three times over. The bill includes provisions to address potential inaccuracies in financing statements and provides a process for debtors to challenge their filing.
Key provisions
- Increases the civil penalty for filing false lawsuits, liens, or encumbrances against public officials from $5,000 to $15,000.
- Defines ‘lien’ to include financing statements.
- Prohibits filing financing statements without a reasonable basis.
- Requires the Secretary of State to notify debtors of filed financing statements within 21 days.
- Mandates repayment of court fees paid by debtors to them three times over.
- Allows debtors to file affidavits to challenge inaccurate financing statements.
- Establishes a 30-day hold period for affidavits filed with filing offices.
- Authorizes courts to order termination statements for invalid financing statements.
Who is affected
- Public officials and employees
- Individuals and entities subject to lawsuits, liens, or encumbrances
- Secured parties
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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