SENATE BILL 97155
BY SENATORS Schroeder, Chlouber, and Wham;
also REPRESENTATIVE Tucker.
CONCERNING THE CENTRAL INDEXING SYSTEM.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 49402
(1), (3), (4), and (6), Colorado Revised Statutes, 1992 Repl.
Vol., as amended, are amended to read:
49402. Requirements of
financing statement amendments mortgage as financing
statement. (1) (a) A financing
statement is sufficient if it contains the names of the debtor
and the secured party, an address of the secured party from which
information concerning the security interest may be obtained,
a mailing address of the debtor, and a statement indicating the
types, or describing the items of collateral. A financing statement
must contain the social security number of the debtor or, in the
case of a debtor doing business other than as an individual, the
federal internal revenue service taxpayer identification number
of such debtor. SUBJECT TO SECTION 49413 (1), a financing
statement may be filed before a security agreement is made or
a security interest otherwise attaches. When the financing statement
covers crops growing or to be grown, the statement must also contain
a description of the real estate concerned.
(b) When the financing statement covers
timber to be cut or covers minerals or other substances of value
which may be extracted from the earth, or accounts subject to
subsection (5) of section 49103, or when the financing
statement is filed as a fixture filing (section 49313)
and the collateral is goods which are or are to become fixtures,
the statement must also comply with subsection (5) of this section.
A copy of the security agreement is sufficient as a financing
statement if it contains the information required by paragraph
(a) of this subsection (1). A carbon,
photographic, or other reproduction of a security agreement or
a financing statement is sufficient as a financing statement if
the security agreement so provides or if the original has been
filed in this state.
(3) A form substantially as follows is
sufficient to comply with subsection (1) of this section:
Name of debtor (or assignor) ............................................................
Address .............................................................................................
SOCIAL SECURITY NUMBER OR FEDERAL TAX IDENTIFICATION
NUMBER OF DEBTOR ..........................................................................
Name of secured party (or assignee) ...............................................
Address ............................................................................................
1. This financing statement covers the following
types (or items) of property:
(Describe) ........................................................................................
2. (If collateral is crops) The above described crops
are growing or are to be grown on:
(Describe real estate) .......................................................................
3. (If applicable) The above goods are to become
fixtures on* (*Where appropriate substitute either "The above
timber is standing on" or "The above minerals or other
substances of value which may be extracted from the earth, or
accounts will be financed at the wellhead or minehead of the well
or mine located on")
(Describe real estate) .......................................................................
and this financing statement is to be filed in the
real estate records. (If the debtor does not have an interest
of record) The name of a record owner is .
4. (If products of collateral are claimed) Products
of the collateral are also covered.
(4) A financing statement may be amended
by the filing of an amendment. AN AMENDMENT THAT DELETES COLLATERAL
COVERED BY A FINANCING STATEMENT SHALL BE SIGNED BY THE SECURED
PARTY AND IF SUCH AMENDMENT IS FILED ELECTRONICALLY IT SHALL BE
SIGNED ELECTRONICALLY, PURSUANT TO SECTION 49413 (2).
An amendment does not extend the period of effectiveness of a
financing statement. If any amendment adds collateral, it is effective
as to the added collateral only from the filing date of the amendment.
In this article, unless the context otherwise requires, the term
"financing statement" means the original financing statement
and any amendments.
(6) (a) A mortgage is effective as
a financing statement filed as a fixture filing from the date
of its recording if:
(a) (I) The
goods are described in the mortgage by item or type;
(b) (II) The
goods are or are to become fixtures related to the real estate
described in the mortgage;
(c) (III) The
mortgage complies with the requirements for a financing statement
AS SET FORTH in this section; other
than EXCEPT THAT SAID MORTGAGE IS
NOT REQUIRED TO INCLUDE THE SOCIAL SECURITY NUMBER OR FEDERAL
TAXPAYER IDENTIFICATION NUMBER OF THE DEBTOR OR a recital that
it SAID
MORTGAGE is to be filed in the real estate records; and
(d) (IV) The
mortgage is duly recorded.
(b) No fee with reference to the financing
statement is required other than the regular recording and satisfaction
fees with respect to the mortgage.
SECTION 2. 49403
(3), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is
amended to read:
49403. What constitutes
filing duration of filing effect of lapsed filing
duties of filing officer. (3) (a) SUBJECT
TO SECTION 49412 AND PARAGRAPH (b) OF THIS SUBSECTION
(3), a continuation statement may be filed by the secured party
within six months prior to the expiration of the fiveyear
period specified in subsection (2) of this section. Any such continuation
statement must identify the original statement by FILING OFFICE,
file number, and state that the original
statement is still effective AND
DATE OF FILING. Upon timely filing of the continuation statement,
the effectiveness of the original statement is continued for five
years after the last date to which the filing was effective whereupon
it lapses in the same manner as provided in subsection (2) of
this section unless another continuation statement is filed prior
to such lapse. Succeeding continuation statements may be filed
in the same manner to continue the effectiveness of the original
statement. Unless a statute on disposition of public records provides
otherwise and except as provided in subsection (6) of this section,
the filing officer may remove a lapsed statement from the files
and destroy it or a microfilm or other photographic record thereof
after one year after the lapse. The filing officer shall so arrange
matters by physical annexation of financing statements to continuation
statements or other related filings, or by other means, that if
he or she physically destroys the financing statements of a period
more than five years past, those which have been continued by
a continuation statement or which are still effective under subsection
(6) of this section shall be retained.
(b) ANY CONTINUATION STATEMENT FILED ON
OR AFTER JULY 1, 1996, INCLUDING ONE THAT WAS PERFECTED BY FILING
WITH BOTH THE OFFICES OF THE SECRETARY OF STATE AND A COUNTY CLERK
AND RECORDER, CONTINUES THE PERFECTION IN ALL OF THE COLLATERAL
LISTED ON THE FILING. THE FILING OF A SINGLE CONTINUATION STATEMENT
SHALL MAINTAIN THE EFFECTIVENESS OF FINANCING STATEMENTS THAT
NAME IDENTICAL COLLATERAL BUT HAVE BEEN FILED IN MULTIPLE LOCATIONS.
SECTION 3. 49404
(1), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is
amended to read:
49404. Termination statement.
(1) If a financing statement covering consumer goods
is filed on or after January 1, 1978, within one month or within
ten days following written demand by the debtor after there is
no outstanding secured obligation and no commitment to make advances,
incur obligations, or otherwise give value, the secured party
must file with each filing officer with whom the financing statement
was filed a termination statement to the effect that the secured
party no longer claims a security interest under the financing
statement, which shall be identified by file number. In other
cases whenever there is no outstanding secured obligation and
no commitment to make advances, incur obligations, or otherwise
give value, the secured party must on written demand by the debtor
send the debtor, for each filing officer with whom the financing
statement was filed, a termination statement to the effect that
the secured party no longer claims a security interest under the
financing statement, which shall be identified by file number.
If the affected secured party fails to file such a termination
statement as required by this subsection (1) or to send such a
termination statement within ten days after proper demand therefor,
the secured party shall be liable to the debtor for one hundred
dollars, and in addition for any loss caused to the debtor by
such failure. A TERMINATION STATEMENT SHALL BE SIGNED BY THE SECURED
PARTY, AND IF SUCH STATEMENT IS FILED ELECTRONICALLY IT SHALL
BE SIGNED ELECTRONICALLY, PURSUANT TO SECTION 49413
(2).
SECTION 4. 49405
(2), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is
amended to read:
49405. Assignment of security
interest duties of filing officer.
(2) A secured party may assign of record all or a part
of the secured party's rights under a financing statement by the
filing, in the place where the original financing statement was
filed, of a separate written
statement of assignment setting forth the name of the secured
party of record and the debtor, the file number and the date of
filing of the financing statement and the name and address of
the assignee and containing a description of the collateral assigned.
A copy of the assignment is sufficient as a separate statement
if it complies with the preceding sentence. SUCH SEPARATE STATEMENT
OF ASSIGNMENT SHALL BE SIGNED BY THE SECURED PARTY, AND IF SUCH
STATEMENT IS FILED ELECTRONICALLY IT SHALL BE SIGNED ELECTRONICALLY,
PURSUANT TO SECTION 49413 (2). On presentation to
the filing officer of such a separate statement, the filing officer
shall mark such separate statement with the date and hour of the
filing and shall note the assignment on the index of the financing
statement, or in the case of a fixture filing, or a filing covering
timber to be cut, minerals or other substances of value which
may be extracted from the earth, or accounts subject to subsection
(5) of section 49103, the filing officer shall index
the assignment under the name of the assignor as grantor, and,
to the extent that the law of this state provides for indexing
the assignment of a mortgage under the name of the assignee, the
filing officer shall index the assignment of the financing statement
under the name of the assignee. Notwithstanding the provisions
of this subsection (2), an assignment of record of a security
interest in a fixture contained in a mortgage effective as a fixture
filing (subsection (6) of section 49402) may be made
only by an assignment of the mortgage in the manner provided by
the law of this state other than this code.
SECTION 5. 49406,
Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended
to read:
49406. Release of collateral
duties of filing officer. A secured
party of record may release all or a part of any collateral described
in a filed financing statement. The statement of release is sufficient
if it contains a description of the collateral being released,
the name and address of the debtor, the name and address of the
secured party, and the file number of the financing statement.
THE STATEMENT OF RELEASE SHALL BE SIGNED BY THE SECURED PARTY,
AND IF SUCH STATEMENT IS FILED ELECTRONICALLY IT SHALL BE SIGNED
ELECTRONICALLY, PURSUANT TO SECTION 49413 (2). Upon
presentation of such a statement of release to the filing officer,
the filing officer shall mark the statement with the hour and
date of filing and shall note the same upon the margin of the
index of the filing of the financing statement.
SECTION 6. Part
4 of article 9 of title 4, Colorado Revised Statutes, 1992 Repl.
Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
to read:
49413. Authorization to
file financing statement liability for unauthorized filing
electronic signatures. (1) (a) NO
PERSON SHALL FILE A FINANCING STATEMENT OR AMENDMENT THAT ADDS
COLLATERAL COVERED BY A FINANCING STATEMENT UNLESS THE DEBTOR
AUTHORIZES SUCH FILING IN A SIGNED WRITING. ANY SUCH STATEMENT
OR AMENDMENT THAT IS FILED ELECTRONICALLY SHALL BE SIGNED ELECTRONICALLY,
PURSUANT TO SUBSECTION (2) OF THIS SECTION. UPON SIGNING A WRITTEN
SECURITY AGREEMENT A DEBTOR AUTHORIZES THE SECURED PARTY TO FILE
A FINANCING STATEMENT AND AMENDMENTS COVERING THE COLLATERAL DESCRIBED
IN THE SECURITY AGREEMENT AND ANY PROCEEDS OF SAID COLLATERAL.
(b) ANY PERSON WHO FILES A FINANCING STATEMENT
OR AMENDMENT IN VIOLATION OF PARAGRAPH (a) OF THIS SUBSECTION
(1) IS LIABLE TO THE DEBTOR FOR FIVE HUNDRED DOLLARS AND ANY LOSS
SUSTAINED BY THE DEBTOR AS A RESULT OF SUCH UNAUTHORIZED FILING.
(2) ANY AMENDMENT THAT DELETES COLLATERAL
COVERED BY A FINANCING STATEMENT, TERMINATION STATEMENT, SEPARATE
STATEMENT OF ASSIGNMENT, OR STATEMENT OF RELEASE OF COLLATERAL
AND IS FILED ELECTRONICALLY, SHALL INCLUDE AN ELECTRONIC SIGNATURE
OF THE SECURED PARTY THAT COMPLIES WITH PROCEDURES ADOPTED BY
THE FILING OFFICER WITH WHOM SUCH FILING IS MADE. SUCH PROCEDURES
SHALL REQUIRE, AT A MINIMUM, THAT THE NAME AND ADDRESS OF THE
SECURED PARTY APPEAR ON SUCH FILING WHEN IT IS RETRIEVED ELECTRONICALLY
OR IN PRINTED FORM. AN ELECTRONIC SIGNATURE MAY CONSIST OF AN
ACCESS CODE OR ANY OTHER IDENTIFYING WORD OR NUMBER ASSIGNED BY
A FILING OFFICER THAT IS UNIQUE TO A PARTICULAR FILER.
SECTION 7. 49.3103
(3), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is
amended BY THE ADDITION OF A NEW PARAGRAPH to read:
49.3103. Central indexing
system board. (3) In performing
its duties pursuant to this article the board has the power to:
(d.5) EXPLORE WAYS AND MEANS OF EXPANDING
THE AMOUNT AND KIND OF PUBLIC INFORMATION PROVIDED AND THE FORM
IN WHICH IT IS PROVIDED, EXPANDING THE BASE OF USER ASSOCIATIONS
THAT ACCESS SUCH PUBLIC INFORMATION AND, WHERE APPROPRIATE, IMPLEMENTING
SUCH EXPANSION OR INCREASE;
SECTION 8. 49.5103
(7) (d) (IV) and (7) (e), Colorado Revised Statutes, 1992 Repl.
Vol., are amended to read:
49.5103. Definitions.
As used in this article, unless the context otherwise requires:
(7) "Effective financing statement"
means a statement that:
(d) Contains:
(IV) A description of the farm products
by categories included in subsection (8) of this section subject
to the security interest created by the debtor including: The
amount of such products, unless all of a particular farm product
is subject to the particular security interest; IDENTIFICATION
OF EACH COUNTY, UTILIZING THE COUNTY CODE OR OTHER NUMERIC METHOD
OF IDENTIFICATION USED TO IDENTIFY THE COUNTY ESTABLISHED BY THE
BOARD; a reasonable description of
the property, including the name of each county in Colorado
where the farm product is produced or stored or to be produced
or to be stored; unless farm products
of the debtor now or hereafter located in all counties of the
state of Colorado are subject to the particular security interest;
and the crop year, unless every crop year for the duration of
the effective financing statement is subject to the particular
security interest;
(e) Shall be amended in writing within
three months after any material change, similarly signed, and
filed to reflect material changes. SUCH AMENDMENT AND MATERIAL
CHANGE SHALL BE SIGNED BY THE SECURED PARTY, AND IF SUCH AMENDMENT
IS FILED ELECTRONICALLY IT SHALL BE SIGNED ELECTRONICALLY, PURSUANT
TO SECTION 49413 (2). However, if the security interest
is terminated as to one or more of the farm products shown on
the filed effective financing statement and the effective financing
statement is to remain effective as to one or more other farm
products, an amendment shall be filed showing such partial termination
within thirty days after termination of such security interest,
and if the affected secured party fails to file an amendment showing
such partial termination within the thirtyday period, he
shall be liable to the debtor for one hundred dollars, and, in
addition, for any loss caused to the debtor by such failure.
SECTION 9. 49.5106,
Colorado Revised Statutes, 1992 Repl. Vol., is amended to read:
49.5106. Continuation statements.
(1) A continuation statement may be filed within six
months prior to the expiration of the fiveyear period of
an effective financing statement. Any such continuation statement
shall identify the current effective financing statement by file
number. and shall state that the statement
is still effective. Upon timely filing
of the continuation statement, the effectiveness of the statement
shall be continued for five years after the last date to which
the filing was effective, whereupon it shall lapse unless another
continuation statement is filed prior to such lapse. If an effective
financing statement exists at the time insolvency proceedings
are commenced by or against the debtor, the effective financing
statement shall remain effective until termination of the insolvency
proceedings and thereafter for a period of sixty days or until
the expiration of the fiveyear period, whichever occurs
later. Succeeding continuation statements may be filed in the
same manner to continue the effectiveness of the original statement.
(2) AN EFFECTIVE FINANCING STATEMENT FILED
BEFORE JULY 1, 1996, THAT HAS NOT LAPSED BY DECEMBER 31, 1997,
SHALL LOSE ITS PERFECTION AND PRIORITY RIGHTS UNLESS A NEW CONTINUATION
STATEMENT IS FILED ON OR AFTER JULY 1, 1996, BUT ON OR BEFORE
DECEMBER 31, 1997. ANY SUCH CONTINUATION STATEMENT SHALL IDENTIFY
THE ORIGINAL STATEMENT BY FILING OFFICE, FILE NUMBER, AND DATE
OF FILING. THE FILING OF SUCH CONTINUATION STATEMENT SHALL PRESERVE
THE PRIORITY OF THE ORIGINAL FILING AND SHALL BE EFFECTIVE FOR
THE LATER OF FIVE YEARS AFTER THE EXPIRATION OF THE ORIGINAL FILING
OR THE EXPIRATION OF ANY CONTINUATION STATEMENT FILED BEFORE JULY
1, 1996.
(3) THE EFFECTIVENESS OF AN EFFECTIVE
FINANCING STATEMENT FILED BEFORE JULY 1, 1996, THAT LAPSES AFTER
JULY 1, 1996, BUT BEFORE DECEMBER 31, 1997, MAY BE CONTINUED BY
FILING A CONTINUATION STATEMENT IN ACCORDANCE WITH THIS SECTION.
IF SUCH CONTINUATION STATEMENT IS FILED BEFORE JULY 1, 1996, SUCH
EFFECTIVE FINANCING STATEMENT OR CONTINUATION STATEMENT SHALL
BE CONTINUED BY THE TIMELY FILING OF A FURTHER CONTINUATION STATEMENT,
PURSUANT TO SUBSECTION (2) OF THIS SECTION.
SECTION 10. 49.5107
(2), Colorado Revised Statutes, 1992 Repl. Vol., is amended to
read:
49.5107. Notice of termination.
(2) (a) The notice of termination of an effective
financing statement shall:
(I) Be signed by the secured party, shall
AND IF SUCH NOTICE IS FILED ELECTRONICALLY IT SHALL BE SIGNED
ELECTRONICALLY, PURSUANT TO SECTION 49413 (2);
(II) Identify the effective financing
statement to be terminated by file number; and shall
(III) State that the effective financing
statement is to be removed from the master list.
(b) Termination shall be effective as
of the date and hour of filing the notice with the board or its
designee.
SECTION 11. 49.5108,
Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended
BY THE ADDITION OF A NEW SUBSECTION to read:
49.5108. Filings generally.
(3) ANY TERMINATION, AMENDMENT, ASSIGNMENT, OR RELEASE
OF COLLATERAL FILING MADE PURSUANT TO THIS ARTICLE SHALL INCLUDE
THE SIGNATURE OF THE SECURED PARTY, AND IF SUCH FILING IS MADE
ELECTRONICALLY IT SHALL BE SIGNED ELECTRONICALLY, PURSUANT TO
SECTION 49413 (2).
SECTION 12. 49.5111,
Colorado Revised Statutes, 1992 Repl. Vol., is amended to read:
49.5111. Penalties.
Any debtor OR THIRD PARTY who provides any false or misleading
information concerning the name of the owner of any farm products
or concerning
the existence of any security interest affecting farm products
with the intent to deprive the secured party of any of his OR
HER security under the security interest or to defraud or mislead
the buyer of any farm product as to the existence of the security
interest or fails to pay to the secured party any moneys realized
out of the sale of collateral in violation of any security agreement
and with the intent to deprive the secured party of his
SUCH PARTY'S rights thereto, OR MAKES A FILING THAT DOES NOT INCLUDE
THE AUTHORIZED SIGNATURE OF THE SECURED PARTY AS REQUIRED BY SECTION
49.5108 (3), shall be deemed to have violated section
185206, C.R.S., and shall be subject to the penalties
described in said section. Any penalty so collected shall be deposited
into the central filing system fund for administering the central
filing system pursuant to this article.
SECTION 13. 411102,
Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended
BY THE ADDITION OF A NEW SUBSECTION to read:
411102. Fees for filing,
indexing, and furnishing data. (3) WHEN
A DOCUMENT IS NOT SUBMITTED ON A STANDARD FORM ESTABLISHED BY
THE CENTRAL INDEXING SYSTEM BOARD FOR SUCH PURPOSE, THE FILING
OFFICER SHALL CHARGE A FIVEDOLLAR FEE IN ADDITION TO ANY
OTHER FEE IMPOSED PURSUANT TO THIS SECTION FOR FILING, INDEXING,
AND FURNISHING DATA PURSUANT TO SUBSECTIONS (1) (a), (1) (a.5)
(II), (1) (b), (1) (c), (1) (d), (1) (e), AND (1) (f) OF THIS
SECTION.
SECTION 14. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO