Bogus Filings – Some Legal and Policy Considerations

Document Type

Article

Publication Date

10-1-2017

Abstract

There is no free lunch. The ease with which UCC Article 9 permits the filing of financing statements, while tremendously facilitative of legitimate transactions, is a factor in the occasional filing of “bogus” financing statements unrelated to any legitimate transaction. While bogus filings, like all unauthorized filings, have no legal effect, their practical implications can include real-world inconvenience and other harm to putative debtors. UCC Article 9 includes provisions that can be used to address bogus filings. A number of states have adopted additional provisions, whether by way of non-uniform amendment to their enactments of UCC Article 9 or elsewhere. Many involve the exercise of judgment by filing office personnel and assume that a legitimate filing erroneously rejected or removed as bogus can be restored to effectiveness as fully as though no erroneous rejection or removal had occurred. It isn’t that simple.

Publication Title

Uniform Commercial Code Law Journal

Full text not available in Penn Law Legal Scholarship Repository.

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