wa-law.org > bill > 2025-26 > HB 2640 > Original Bill

HB 2640 - Unauthorized UCC filings

Source

Section 1

  1. No person shall cause to be communicated to the filing office as defined in RCW 62A.9A-102 for filing a record if:

    1. The person is not authorized to file the record under RCW 62A.9A-509, 62A.9A-708, or 62A.9A-808;

    2. The record is not related to an existing or anticipated transaction that is or will be governed by Article 62A.9A RCW; and

    3. The record is filed with the intent to harass or defraud the person identified as debtor in the record.

  2. Except as provided in subsection (3) of this section, a person convicted of a violation of subsection (1) of this section is guilty of a gross misdemeanor.

  3. A person convicted of a second or subsequent violation of subsection (1) of this section is guilty of a class C felony.

Section 2 

a.  A filed record is effective only to the extent that it was filed by a person that may file it under RCW 62A.9A‑509 or by the filing office under section 3 of this act.

b.  A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record.

c.  A continuation statement that is not filed within the six-month period prescribed by RCW 62A.9A‑515(d) is ineffective.

Section 4 

a.  Except as otherwise provided in subsection (b) of this section, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.

b.  Filing does not occur with respect to a record that a filing office refuses to accept because:

  1. The record is not communicated by a method or medium of communication authorized by the filing office;

  2. An amount equal to or greater than the applicable filing fee is not tendered or, in the case of a filing office described in RCW 62A.9A-501(a)(1), an amount equal to the applicable filing fee is not tendered;

  3. The filing office is unable to index the record because:

(A) In the case of an initial financing statement, the record does not provide a name for the debtor;

(B) In the case of an amendment or information statement, the record:

    i. Does not identify the initial financing statement as required by RCW 62A.9A‑512 or 62A.9A‑518, as applicable; or

    ii. Identifies an initial financing statement whose effectiveness has lapsed under RCW 62A.9A‑515;

(C) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's surname; or

(D) In the case of a record filed or recorded in the filing office described in RCW 62A.9A‑501(a)(1), the record does not provide a name for the debtor or a sufficient description of the real property to which the record relates;

  1. In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

  2. In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

(A) Provide a mailing address for the debtor; or

(B) Indicate whether the name provided as the name of the debtor is the name of an individual or an organization;

  1. In the case of an assignment reflected in an initial financing statement under RCW 62A.9A‑514(a) or an amendment filed under RCW 62A.9A‑514(b), the record does not provide a name and mailing address for the assignee;

  2. In the case of a continuation statement, the record is not filed within the six-month period prescribed by RCW 62A.9A‑515(d); or

  3. In the case of an initial financing statement or an amendment that provides a name of a debtor that was not previously provided in the financing statement to which the amendment relates, the record was not communicated to the office by a trusted filer and the office reasonably believes that the record was caused to be communicated to it with the intent to harass or defraud the person identified as debtor. The office has no duty to form a belief as to whether a record was caused to be communicated with the intent to harass or defraud the person identified as debtor and has no duty to investigate or ascertain facts relevant to whether such intent was present.

    1. For purposes of subsection (b) of this section:

  4. A record does not provide information if the filing office is unable to read or decipher the information; and

  5. A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by RCW 62A.9A‑512, 62A.9A‑514, or 62A.9A‑518, is an initial financing statement.

    1. A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in subsection (b) of this section, is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files.

    2. A record that the filing office initially refuses to accept under subsection (b)(8) of this section but that it later accepts after it receives additional information is effective as if the office had not initially refused to accept it except as against a purchaser of the collateral that gives value in reasonable reliance upon the absence of the record from the files.

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