wa-law.org > bill > 2025-26 > HB 2256 > Original Bill

HB 2256 - Concerning termination of unauthorized Uniform Commercial Code filings.

Source

Section 1

Administrative termination statement upon debtor affidavit. (a) A person identified as a debtor in a financing statement filed with the filing office may deliver to the filing office a sworn affidavit requesting termination of financing statement, in a form prescribed by the filing office, stating that:

  1. The financing statement was not authorized by the debtor in a signed record or an authenticated security agreement; and

  2. The financing statement does not reflect a mutually understood grant of security interest in the named collateral.

    1. The affidavit must:

  3. Identify the financing statement by file number;

  4. Provide the name and mailing address of the debtor and each secured party of record;

  5. Be notarized and signed under penalty of perjury; and

  6. Include any additional information required by rule.

    1. [Empty]

  7. Upon receipt of an affidavit that meets the requirements of this section, the filing office shall send written notice of the administrative termination to each secured party of record for the financing statement, at the address provided in the record.

  8. Thirty days after mailing the notice of administrative termination, the filing office may file the administrative termination statement subject to the requirements of this Article.

  9. Such proceedings and any appeal therefrom shall be taken in accordance with the administrative procedure act, chapter 34.05 RCW.

    1. An administrative termination statement filed by the filing office under this section becomes effective on the date it is filed.

    2. The department of licensing may adopt rules to implement this section.

    3. The remedy provided in this section is in addition to, and does not limit, the rights and remedies available under RCW 62A.9A-513 or 62A.9A-518.

Section 2 

a.  A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:

  1. The debtor authorizes the filing in a signed record or pursuant to subsection (b) or (c) of this section; or

  2. The person holds an agricultural lien that has become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.

    1. By signing or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering:

  3. The collateral described in the security agreement; and

  4. Property that becomes collateral under RCW 62A.9A‑315(a)(2), whether or not the security agreement expressly covers proceeds.

    1. By acquiring collateral in which a security interest or agricultural lien continues under RCW 62A.9A‑315(a)(1), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under RCW 62A.9A‑315(a)(2).

    2. A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:

  5. The secured party of record authorizes the filing; or

  6. The amendment is a termination statement for a financing statement as to which the secured party of record has failed to file or send a termination statement as required by RCW 62A.9A‑513 (a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.

    1. If there is more than one secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under subsection (d) of this section.

    2. Filing office to file administrative termination. The filing office may file an administrative termination statement upon receipt of a complete and sworn affidavit requesting termination from a named debtor and upon the expiration of 30 days after providing notice to each secured party of an administrative termination statement affidavit under section 1 of this act.

Section 3 

a. Except as provided in subsection (b) of this section, the filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under RCW 62A.9A‑515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and by using the file number assigned to the initial financing statement to which the record relates.

b. Administrative termination statement removal. Notwithstanding any other provision of this section, when the filing office files an administrative termination statement pursuant to section 1 of this act such termination is not subject to the one-year period for lapse or removal under subsection (a) of this section, and the filing office may remove the financing statement after 60 days from the administrative termination filing date.

c. Except to the extent that a statute governing disposition of public records provides otherwise, the filing office immediately may destroy any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with subsections (a) and (b) of this section.

Section 4

This act takes effect September 1, 2026.

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