18 NCAC 05B .0202          GROUNDS FOR REFUSAL OF UCC DOCUMENT

(a)  As used in this Rule, the term "legible" is not limited to refer only to written expressions on paper:  it requires a machine-readable transmission for electronic transmissions and an otherwise readily decipherable transmission in other cases.

(b)  Debtor name and address.  An initial financing statement or an amendment that purports to add a debtor shall be refused if the document fails to include a legible debtor name and address for a debtor, in the case of an initial financing statement, or for the debtor purporting to be added in the case of such an amendment.  If the document contains more than one debtor name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings, and provide a notice to the remitter containing the file number of the document identification of the debtor name(s) that was (were) indexed, and a statement that debtors with illegible or missing names or addresses were not indexed.

(c)  Additional debtor identification.  An initial financing statement or an amendment adding one or more debtors shall be refused if the document fails to identify whether each named debtor (or each added debtor in the case of such an amendment) is an individual (personal name) or an organization (commercial name), if the last name of each individual debtor is not identified, or if, for each debtor identified as an organization, the document does not include in legible form the organization's type, state of organization and organization number, or the SOS ID number in North Carolina, or a statement that it does not have one.

(d)  Secured party name and address.  An initial financing statement, an amendment purporting to add a secured party of record, or an assignment, shall be refused if the document fails to include a legible secured party (or assignee in the case of an assignment) name and address.  If the document contains more than one secured party (or assignee) name or address and some names or addresses are missing or illegible, the filing officer shall refuse the UCC document.

(e)  Lack of identification of initial financing statement.  A UCC document other than an initial financing statement shall be refused if the document does not provide a file number of a financing statement in the UCC information management system that has not lapsed.

(f)  Identifying information.  A UCC document that does not identify itself as an amendment or identify an initial financing statement to which it relates, as required by G.S. 25-9-512(1), 25-9-514(b), or 25-9-518(b)(1), is an initial financing statement.

(g)  Timeliness of continuation.  A continuation shall be refused if it is not received during the six-month period concluding on the day upon which the related financing statement would lapse.

(1)           First day permitted.  The first day on which a continuation may be filed is the date of the month corresponding to the date upon which the financing statement would lapse, six months preceding the month in which the financing statement would lapse.  If there is no such corresponding date during the sixth month preceding the month in which the financing statement would lapse, the first day on which a continuation may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse, although filing by certain means may not be possible on such date if the filing office is not open on such date.

(2)           Last day permitted.  The last day on which a continuation may be filed is the date upon which the financing statement lapses.

History Note:        Authority G.S. 25-9-515; 25-9-516; 25-9-520(a); 25-9-526;

Temporary Adoption Eff. July 2, 2001;

Eff. August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.