SB 837
Relating to filing of fraudulent financing statement
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill addresses the filing of fraudulent financing statements in West Virginia. It establishes penalties for knowingly filing false records, including fines, jail time, and civil lawsuits for damages. Individuals who believe a financing statement was fraudulently filed can file an affidavit with the Secretary of State, triggering a review process and notification to secured parties. The bill also strengthens the Secretary of State’s investigative powers and provides a mechanism for restoring rejected records through court order.
Key provisions
- Establishes criminal and civil penalties for filing false financing statements.
- Allows debtors to file affidavits challenging the validity of fraudulent financing statements.
- Grants the Secretary of State enhanced investigative powers to identify and address fraudulent filings.
- Requires notification to secured parties when an affidavit is filed or an investigation is initiated.
- Provides a process for restoring rejected records through court order and refiling.
- Defines ‘regulated financial institutions’ for specific exemptions related to record communication.
- Addresses records communicated before the bill’s effective date, applying penalties retroactively under certain circumstances.
Who is affected
- Businesses and individuals seeking to secure assets with financing statements.
- Financial institutions holding secured interests.
- The Secretary of State’s office and its staff.
- Individuals who may have been harmed by fraudulent financing statements.
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yours