HB 5229
Relating to filing of a fraudulent financing statement.
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill addresses the issue of fraudulent financing statements filed in West Virginia. It strengthens penalties for knowingly filing false financing statements intended to harass or defraud others, including civil and criminal fines. Individuals who believe a financing statement was fraudulently filed can file an affidavit to challenge it, and the Secretary of State has increased investigative powers to determine if a record was improperly filed. The bill also outlines procedures for secure parties to challenge rejected records and ensures timely notification of record terminations.
Key provisions
- Increases penalties for filing fraudulent financing statements, including fines and potential jail time.
- Allows debtors to file affidavits challenging fraudulent financing statements.
- Grants the Secretary of State expanded investigative powers to identify fraudulent filings.
- Establishes a process for secure parties to challenge rejected financing statements.
- Requires the Secretary of State to promptly notify secure parties of record terminations.
- Provides for court intervention to reinstate or accept rejected records.
- Defines ‘regulated financial institutions’ for exemptions related to record communication.
- Addresses the application of the bill to records filed before its effective date.
Who is affected
- Businesses and individuals seeking to secure assets with financing statements.
- Financial institutions holding security interests.
- The Secretary of State’s office and its employees.
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