DAR File No. 38320

This rule was published in the March 15, 2014, issue (Vol. 2014, No. 6) of the Utah State Bulletin.


Commerce, Corporations and Commercial Code

Rule R154-2

Utah Uniform Commercial Code, Revised Article 9 Rules

Notice of Proposed Rule

(Repeal and Reenact)

DAR File No.: 38320
Filed: 02/28/2014 11:35:36 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

These changes are in response to changes made by S.B. 41 in the 2013 General Legislative Session to Section 70-9A-5.

Summary of the rule or change:

Model law amendments passed, and the Division needed to bring Utah Administrative Rules in compliance with Model Rules associated with Revised Article 9. Definitions were added to better serve those filing UCC forms. A more detailed description of how and when to file is added. A more clear description of searching the database is included. The new debtor name requirements are described more fully. All references to outdated technology, general filing practices in the Division, and general procedures were eliminated. Division Director discretion was eliminated. Outdated procedures and processes were eliminated.

State statutory or constitutional authorization for this rule:

  • Section 70-9A-501 et al

Anticipated cost or savings to:

the state budget:

Since the filings are so similar there will be no new costs to the state.

local governments:

No compliance needed.

small businesses:

Filing fees remain the same.

persons other than small businesses, businesses, or local governmental entities:

Filing fees remain the same.

Compliance costs for affected persons:

None--Fees remain the same as before.

Comments by the department head on the fiscal impact the rule may have on businesses:

This filing updates the administrative rules outlining the procedures for filing Uniform Commercial Code (UCC) records with the Utah Division of Corporations and Commercial Code (Division); for requesting records from the Division; and for the Division's maintaining and disseminating records. The rules are modeled after national standards and respond to substantive changes made in statute during the 2013 General Legislative Session (S.B. 41). Where the amended rules do not increase existing filing fees or impose any new fees for services, no fiscal impact to businesses is anticipated.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Corporations and Commercial Code
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

  • Kathy Berg at the above address, by phone at 801-530-6216, by FAX at 801-530-6438, or by Internet E-mail at kberg@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

04/14/2014

This rule may become effective on:

04/21/2014

Authorized by:

Kathy Berg, Director

RULE TEXT

R154. Commerce, Corporations and Commercial Code.

[R154-2. Utah Uniform Commercial Code, Revised Article 9 Rules.

R154-2-100. Authority and Purpose.

These rules are adopted by the division under the authority of Section 70A-9a-526 to enable the division to facilitate the implementation of the Revised Article 9 of the Uniform Commercial Code.

 

R154-2-101. Place to File.

The filing office is the office for filing UCC documents relating to all types of collateral except for timber to be cut, as-extracted collateral and, when the relevant financing statement is filed as a fixture filing, goods which are or are to become fixtures.

 

R154-2-102. Filing Office Identification.

In addition to the promulgation of these rules, the filing office will disseminate information of its location, mailing address, telephone and fax numbers, and its internet and other electronic "addresses" through usual and customary means.

102.1 On-line information service. The filing officer offers on-line information services at the agency's web site.

 

R154-2-103. Office Hours.

Although the filing office maintains regular office hours, it receives transmissions electronically 24 hours per day, 365 days per year, except for scheduled maintenance and unscheduled interruptions of service. Electronic communications may be retrieved and processed periodically (but no less often than once each day the filing office is open for business) on a batch basis.

 

R154-2-104. UCC Document Delivery.

UCC documents may be tendered for filing at the filing office as follows.

104.1 Personal delivery, at the filing office street address. The file time for a UCC document delivered by this method is when delivery of the UCC document is received by the filing office (even though the UCC document may not yet have been accepted for filing and subsequently may be rejected).

104.2 Courier delivery, at the filing office street address. The file time for a UCC document delivered by this method is, notwithstanding the time of delivery, at the earlier of the time the UCC document is first examined by a filing officer for processing (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected), or the next close of business following the time of delivery. A UCC document delivered after regular business hours or on a day the filing office is not open for business will have a filing time of the close of business on the next day the filing office is open for business.

104.3 Postal service delivery, to the filing office mailing address. The file time for a UCC document delivered by this method is the next close of business following the time of delivery (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected). A UCC document delivered after regular business hours or on a day the filing office is not open for business will have a filing time of the close of business on the next day the filing office is open for business.

104.4 Electronic delivery. UCC documents may be submitted electronically via the agency's online services portal. The file time for a UCC document delivered by this method is the time that the filing office's system analyzes the relevant transmission and determines that all the required elements of the transmission have been received in a required format and are machine-readable.

 

R154-2-105. Search Request Delivery.

UCC search requests may be delivered to the filing office by any of the means by which UCC documents may be delivered to the filing office. Requirements concerning search requests are set forth in rule R154-2-149.

 

R154-2-106. Filing Fees.

Filing fees will be established by the Utah State Legislature in conjunction with the annual budgetary process and current fees will be posted on the division web page and available at the filing office.

 

R154-2-107. Methods of Payment.

The division will enhance payment options as they become available. Filing fees and fees for public records services may be paid by the following methods.

107.1 Cash. The filing officer discourages cash payment unless made in person to the cashier at the filing office.

107.2 Checks. Checks made payable to the filing office or the State of Utah, including checks in an amount to be filled in by a filing officer but not to exceed a particular amount, will be accepted for payment.

107.3 Credit card. The filing office accepts payments using credit cards issued by approved credit card issuers. A current list of approved credit card issuers is available from the filing office. Remitters shall provide the filing officer with the card number, the expiration date of the card, the name of the approved card issuer, the name of the person or entity to whom the card was issued and the billing address for the card. Payment will not be deemed tendered until the issuer or its agent has confirmed to the filing office that payment will be forthcoming.

 

R154-2-108. Overpayment and Underpayment Policies.

108.1 Overpayment. Overpayment will be handled in accordance with State and/or Agency refund policy.

108.2 Underpayment. Upon receipt of a document with an insufficient fee, the document shall be rejected as provided in rule R154-2-118.

 

R154-2-109. Fees for Public Records Services.

Fees for public records services are posted on the web page or at the filing office.

 

R154-2-110. New Practices and Technologies.

The filing officer is authorized to adopt practices and procedures to accomplish receipt, processing, maintenance, retrieval and transmission of, and remote access to, Article 9 filing data by means of electronic, voice, optical and/or other technologies, and, without limiting the foregoing, to maintain and operate, a non-paper-based Article 9 filing system utilizing any of such technologies. In developing and utilizing technologies and practices, the filing officer shall, to the greatest extent feasible, take into account compatibility and consistency with, and whenever possible be uniform with, technologies, practices, policies and regulations adopted in connection with Article 9 filing systems in other states.

 

R154-2-111. The Duties and Responsibilities of the Filing Officer with Respect to the Administration of the UCC Are Ministerial.

In accepting for filing or refusing to file a UCC document pursuant to these rules, the filing officer does none of the following:

111.1 Determine the legal sufficiency or insufficiency of a document.

111.2 Determine that a security interest in collateral exists or does not exist.

111.3 Determine that information in the document is correct or incorrect, in whole or in part.

111.4 Create a presumption that information in the document is correct or incorrect, in whole or in part.

 

R154-2-112. Duty to File.

Provided that there is no ground to refuse acceptance of the document under rule R154-2-115, a UCC document is filed upon its receipt by the filing officer with the filing fee and the filing officer shall promptly assign a file number to the UCC document and index it in the information management system.

 

R154-2-113. Grounds for Refusal of UCC Document.

The following grounds are the sole grounds for the filing officer's refusal to accept a UCC document for filing. As used herein, 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.

113.1 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 indexed and rejected.

113.2 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 or an organization, 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 type, state of organization and organization number (if it has one) or a statement that it does not have one.

113.3 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 index the legible name and address pairings, and provide a notice to the remitter containing the file number of the document, identification of the secured party (or assignee) names that were indexed, and a statement that secured parties with illegible or missing names or addresses were indexed and rejected.

113.4 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.

113.5 Identifying information. A UCC document that does not identify itself as an amendment or identify an initial financing statement to which it relates, is an initial filing statement.

113.6 Timeliness of continuation. A continuation shall be refused is it is not received within six months prior to expiration or the first working day after that period.

113.6.1 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, minus six months. A continuation may be filed any time during that six month period preceding the lapse date, provided the filing office is open. In the event the filing office is closed on the lapse date or the date six months preceding the lapse date - such as a weekend day or scheduled holiday - the continuation may be filed on the next business day.

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

113.7 Fee. A document shall be refused if the document is accompanied by less than the full filing fee tendered.

113.8 Means of communication. UCC documents communicated to the filing office by a means of communication or on altered statutory forms not authorized by the filing officer for the communication of UCC documents shall be refused.

 

R154-2-114. Grounds Not Warranting Refusal.

The sole grounds for the filing officer's refusal to accept a UCC document for filing are enumerated in rule R154-2-113. The following are examples of defects that do not constitute grounds for refusal to accept a document. They are not a comprehensive enumeration of defects outside the scope of permitted grounds for refusal to accept a UCC document for filing.

114.1 Errors. The UCC document contains or appears to contain a misspelling or other apparently erroneous information.

114.2 Incorrect names.

114.2.1 The UCC document appears to identify a debtor incorrectly.

114.2.2 The UCC document appears to identify a secured party or a secured party of record incorrectly.

114.3 Extraneous information. The UCC document contains additional or extraneous information of any kind.

114.4 Insufficient information. The UCC document contains less than the information required by Article 9 of the UCC, provided that the document contains the information required in rule R154-2-116.

114.5 Collateral description. The UCC document incorrectly identifies collateral, or contains an illegible or unintelligible description of collateral, or appears to contain no such description.

114.6 Excessive fee. The document is accompanied by funds in excess of the full filing fee.

 

R154-2-115. Time Limit.

The filing officer shall determine whether criteria exist to refuse acceptance of a UCC document for filing not later than the second business day after the date the document would have been filed had it been accepted for filing and shall index a UCC document not so refused within the same time period.

 

R154-2-116. Procedure Upon Refusal.

If the filing officer finds grounds under rule R154-2-115 to refuse acceptance of a UCC document, the filing officer shall return the document, if written, to the remitter. The filing office shall send a notice that contains the date and time the document would have been filed had it been accepted for filing (unless such date and time are stamped on the document), and a brief description of the reason for refusal to accept the document under rule R154-2-115. The notice shall be sent to a secured party or the remitter no later than the second business day after of the determination to refuse acceptance of the document. A refund may be delivered with the notice or under separate cover.

 

R154-2-117. Acknowledgment.

At the request of a filer or remitter who files a paper or paper-based UCC document, the filing officer shall send to said filer or remitter an acknowledgement of the record of the UCC document showing the file number assigned to it and the date and time of filing. For UCC documents not filed in paper or paper-based form the filing officer shall communicate to the filer or remitter the information in the filed document, the file number and the date and time of filing.

 

R154-2-118. Other Notices.

Nothing in these rules prevents a filing officer from communicating to a filer or a remitter that the filing officer noticed apparent potential defects in a UCC document, whether or not it was filed or refused for filing. However, the filing office is under no obligation to do so and may not, in fact, have the resources to do so or to identify such defects. THE RESPONSIBILITY FOR THE LEGAL EFFECTIVENESS OF FILING RESTS WITH FILERS AND REMITTERS AND THE FILING OFFICE BEARS NO RESPONSIBILITY FOR SUCH EFFECTIVENESS.

 

R154-2-119. Division Director Discretion.

The Director of the Division of Corporations and Commercial Code shall have discretionary authority according to UCA Subsection 13-1a-6(1) to refuse to file a document which is determined to be non-compliant with UCA Sections 70A-9a-501 through 70A-9a-527.

 

R154-2-120. Refusal Errors.

If a secured party or a remitter demonstrates to the satisfaction of the filing officer that a UCC document that was refused for filing should not have been refused under rule R154-2-113, the filing officer will file the UCC document as provided in these rules with a filing date and time assigned when such filing occurs. The filing officer will also file an administrative action (and such demonstration of error shall constitute the secured party's authorization to do so) that states that the effective date and time of filing is the date and time the UCC document was originally tendered for filing, and sets forth such date and time.

 

R154-2-121. UCC Information Management System.

The filing officer uses an information management system to store, index, and retrieve information relating to financing statements. The information management system includes an index of the names of debtors named on financing statements which have not lapsed. The rules in this section describe the UCC information management system.

 

R154-2-122. Primary Data Elements.

The primary data elements used in the UCC information management system are the following.

122.1 Identification numbers.

122.1.1 Each initial financing statement is identified by its file number. Identification of the initial financing statement is applied to written UCC documents or otherwise permanently associated with the record maintained for UCC documents in the UCC information management system. A record is created in the information management system for each initial financing statement and all information comprising such record is maintained in such system. Such record is identified by the same information assigned to the initial financing statement.

122.1.2 A UCC document other than an initial financing statement is identified by a the initial UCC file number assigned by the filing officer. In the information management system, records of all UCC documents other than initial financing statements are linked to the record of their related initial financing statement.

122.2 Type of document. The type of UCC document from which data is transferred is identified in the information management system from information supplied by the remitter.

122.3 Filing date and filing time. The filing date and filing time of UCC documents are stored in the information management system. Calculation of the lapse date of an initial financing statement is based upon the filing date.

122.4 Identification of parties. The names and addresses of debtors and secured parties are transferred from UCC documents to the UCC information management system using one or more data entry or transmittal techniques.

122.5 Status of financing statement. In the information management system, each financing statement has a status of active or inactive.

122.6 Page count. The total number of pages in a UCC document is maintained in the information management system.

122.7 Lapse indicator. An indicator is maintained by which the information management system identifies whether or not a financing statement will lapse and, if it does, when it will lapse. The lapse date is determined as provided in rule R154-2-134.

 

R154-2-123. Names of Debtors Who Are Individuals.

For the purpose of this rule, "individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate. This rule applies to the name of a debtor or a secured party on a UCC document who is an individual.

123.1 Individual name fields. The names of individuals are stored in fields that include only the names of individuals, and not the names of organizations. Separate data entry fields are established for first (given), middle (given), and last names (surnames or family names) of individuals. The filing officer assumes no responsibility for the accurate designation of the components of a name but will accurately enter the data in accordance with the filer's designations.

123.2 Titles and prefixes before names. Titles and prefixes, such as "doctor," "reverend," "Mr.," and "Ms.," should not be entered in the UCC information management system. However, as provided in rule R154-2-137, when a UCC document is submitted with designated name fields, the data will be entered in the UCC information management system exactly as it appears.

123.3 Titles and suffixes after names. Titles, suffixes or indications of status such as "M.D." and "esquire" and "senior, junior, III, etc." shall be entered in the UCC information management system.

123.4 Truncation - individual names. Personal name fields in the UCC database are fixed in length. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field. The length of data entry name fields are as follows.

123.4.1 First name: 14 characters.

123.4.2 Middle name:14 characters.

123.4.3 Last name:14 characters.

 

R154-2-124. Names of Debtors That Are Organizations.

This rule applies to the name of an organization who is a debtor or a secured party on a UCC document. These names are not case-sensitive.

124.1 Single field. The names of organizations are stored in fields that include only the names of organizations and not the names of individuals. A single field is use to store an organization name.

124.2 Truncation -organization names. The organization name field in the UCC database is fixed in length. The maximum length is 125 characters. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field.

 

R154-2-125. Estates.

Although they are not human beings, estates are treated as if the decedent were the debtor under rule 125.

 

R154-2-126. Initial Financing Statement.

Upon the filing of an initial financing statement the status of a debtor named on the document shall be active and shall continue as active until one year after the financing statement lapses.

 

R154-2-127. Amendment.

Upon the filing of an amendment the status of the parties and the status of the financing statement shall have no effect upon the status of any debtor or secured party so long as the amendment is a collateral, address, debtor name, or secured party name change or the addition or deletion of a debtor or secured party.

 

R154-2-128. Procedure Upon Lapse.

If there is no timely filing of a continuation with respect to a financing statement, the financing statement lapses on its lapse date but no action is then taken by the filing office. On the first anniversary of such lapse date, the information management system renders or is caused to render the financing statement inactive and the financing statement will no longer be made available to a searcher unless inactive statements are requested by the searcher and the financing statement is still retrievable by the information management system.

 

R154-2-129. XML Documents.

The division may implement, at its own discretion, appropriate means of electronic submission of UCC documents.

 

R154-2-130. Filing and Data Entry Procedures.

130.1 It is the policy of the filing officer to promptly file a document that conforms to these rules. Except as provided in these rules, data is transferred from a UCC document to the information management system exactly as the data are set forth in the document. Personnel who create reports in response to search requests type search criteria exactly as set forth on the search request. No effort is made to detect or correct errors of any kind.

130.2 Electronic documents must be submitted in ANSI or ASCII format.

130.3 Collateral descriptions on paper forms submitted will be entered into the data base to the first 250 characters, including spaces and punctuation, per page of initial filing and each addendum. If data on form is over 250 characters use addendum page(s) and include additional fee(s).

130.4 Collateral descriptions on electronic filings are entered up to 4,000 characters per page including spaces and punctuation.

 

R154-2-131. Document Indexing and Other Procedures Before Archiving.

This section contains a chronological description of the indexing procedures and correspondence procedures followed by the filing officer prior to archiving a UCC document or returning the UCC document to the remitter.

131.1 Date and time stamp. The date and time of receipt are noted on the document or otherwise permanently associated with the record maintained for a UCC document in the UCC information management system at the earliest possible time.

131.2 Cash management. Transactions necessary for payment of the filing fee are performed.

131.3 Document review. The filing office determines whether a basis exists to refuse the document under rule R154-2-115.

131.3.1 File stamp. The document is stamped. If there is no basis for refusal of the document, it is deemed filed and a unique identification number and the filing date is permanently associated with the record of the document maintained in the UCC information management system. The sequence of the identification number is not an indication of the order in which the document was received.

131.3.2 Correspondence. If there is a basis for refusal of the document, notification of refusal to accept the document is prepared as provided in rule R154-2-116. If there is no basis for refusal of the document, an acknowledgment of filing is prepared as provided. If the document was tendered in person notice of refusal or acknowledgment of the filing is given to the remitter by personal or USPS delivery. If the document is tendered online such notice or acknowledgment is transmitted to the remitter by online response. For documents submitted in any other way, notice of refusal is sent to the remitter or the first secured party named on the UCC document if so requested by regular mail or by overnight courier if the remitter provides a prepaid waybill or access to the remitter's account with the courier.

131.4 Data entry. Data entry and indexing functions are performed as described in this section.

 

R154-2-132. Filing Date.

The filing date of a UCC document is the date the UCC document is received with the proper filing fee if the filing office is open to the public on that date or, if the filing office is not so open on that date, the filing date is the next date the filing office is so open, except that, in each case, UCC documents received after 5:00 p.m. shall be deemed received on the following day. The filing officer may perform any duty relating to the document on the filing date or on a date after filing date.

 

R154-2-133. Filing Time.

The filing time of a UCC document is determined as provided in rule R154-2-104.

 

R154-2-134. Lapse Date and Time.

A lapse date is calculated for each initial financing statement (unless the debtor is indicated to be a transmitting utility or manufactured housing). The lapse date is the same date of the same month as the filing date in the fifth year after the filing date or relevant subsequent fifth anniversary thereof if timely continuation statement is filed. The lapse takes effect at midnight at the end of the lapse date. The relevant anniversary for a February 29 filing date shall be the March 1 in the fifth year following the year of the filing date.

 

R154-2-135. Errors of the Filing Officer.

The filing office may correct the errors of filing officer personnel in the UCC information management system at any time. If the correction is made after the filing officer has issued a certification date that includes the filing date of a corrected document, the filing officer shall proceed as follows. A record relating to the relevant initial financing statement will be placed in the UCC information management system stating the date of the correction and explaining the nature of the corrective action taken. The record shall be preserved for so long as the record of the initial financing statement is preserved in the UCC information management system.

 

R154-2-136. Errors Other Than Filing Office Errors.

An error by a filer is the responsibility of such filer. It can be corrected by filing an amendment.

 

R154-2-137. Data Entry of Names - Designated Fields.

A filing should designate whether a name is a name of an individual or an organization and, if an individual, also designates the first, middle and last names. When this is done, the following rules shall apply.

137.1 Organization names. Organization names are entered into the UCC information management system exactly as set forth in the UCC document.

137.2 Individual names. On a form that designates separate fields for first, middle, and last names and any suffix, the filing officer enters the names into the first, middle, and last name fields in the UCC information management system exactly as set forth on the form.

137.3 Designated fields encouraged. The filing office encourages the use of forms that designate separate fields for individual and organization names and separate fields for first, middle, and last names. Such forms diminish the possibility of filing office error and help assure that filers expectations are met. However, filers should be aware that the inclusion of names in an incorrect field or failures to transmit names accurately to the filing office may cause filings to be ineffective. All documents submitted through direct data entry or through electronic means will be required to use designated name fields.

 

R154-2-138. Data Entry of Names - No Designated Fields.

A UCC document that is an initial financing statement or an amendment that adds a debtor to a financing statement and that fails to specify whether the debtor is an individual or an organization should be refused by the filing office. If it is accepted for filing in error, the following rules shall apply.

138.1 Identification of organizations. When not set forth in a field designated for individual names, a name is treated as an organization name if it contains words or abbreviations that indicate status such as the following and similar words or abbreviations in foreign languages: association, church, college, company, co., corp., corporation, inc., limited, ltd., club, foundation, fund, L.L.C., limited liability company, institute, society, union, syndicate, GmBH, S.A. de C.V., limited partnership, L.P., limited liability partnership, L.L.P., trust, business trust, co-op, cooperative and other designations established by statutes to indicate a statutory organization. In cases where organization or individual status is not designated by the filer and is not clear, the filing officer will use his own judgment.

138.2 Identification of individuals. A name is entered as the name of an individual and not the name of an organization when the name is followed by a title substantially similar to one of the following titles, or the equivalent of one of the following titles in a foreign language: proprietor, sole proprietor, proprietorship, sole proprietorship, partner, general partner, president, vice president, secretary, treasurer, M.D., O.D., D.D.S., attorney at law, Esq., accountant, CPA. In such cases, the title is not entered.

138.3 Individual and organization names on a single line. Where it is apparent that the name of an individual and the name of an entity are stated on a single line and not in a designated individual name field, the filing may be rejected.

138.4 Individual names. The failure to designate the last name of an individual debtor in an initial financing statement or an amendment adding such debtor to a financing statement should cause a filing to be refused. If the filing is accepted in error, or if only the last name is designated, the following data entry rules apply.

138.4.1 Freestanding initials. An initial in the first position of the name is treated as a first name. An initial in the second position of the name is treated as a middle name.

138.4.2 Combined initials and names. An initial and a name to which the initial apparently corresponds is entered into one name field only (e.g., "D. (David)" in the name "John D. (David) Rockefeller" is entered as "John" (first name); "D. (David)" (middle name); "Rockefeller" (last name)).

138.4.3 Multiple individual names on a single line. Two individual names contained in a single line are entered exactly as submitted and reflecting a single debtor.

138.4.4 One word names. A one word name is entered as a last name (e.g., "Cher" is treated as a last name).

138.4.5 Nicknames. A nickname is entered in the name field together with the name preceding the nickname, or if none, then as the first name (e.g., "William (Bill) Jones").

 

R154-2-139. Verification of Data Entry.

The Division of Corporations and Commercial Code will enter the data as it is presented and encourages the filer to check the information on the database.

 

R154-2-140. Initial Financing Statement.

A new record is opened in the UCC information management system for each initial financing statement that bears the file number of the financing statement and the date and time of filing.

140.1 The name and address of each debtor that are legibly set forth in the financing statement are entered into the record of the financing statement. Each such debtor name is included in the searchable index and is not removed until one year after the financing statement lapses. Debtor addresses might not be included in the searchable index except to the extent the filing office offers or intends to offer limited searches or limited copy requests.

140.2 The name and address of each secured party that are legibly set forth in the financing statement are entered into the record of the financing statement.

140.3 The record is indexed according to the name of the debtor(s) and is maintained for public inspection.

140.4 A lapse date is established for the financing statement, unless the initial financing statement indicates it is filed against a transmitting utility, and the lapse date is maintained as part of the record.

 

R154-2-141. Amendment.

A record is created for the amendment that bears the file number for the initial filing statement to which it is associated and the date and time of filing.

141.1 The record of the amendment is associated with the record of the related initial financing statement in a manner that causes the amendment to be retrievable each time a record of the financing statement is retrieved.

141.2 The name and address of each additional debtor and secured parties are entered into the UCC information management system in the record of the financing statement. Each such additional debtor name is added to the searchable index and are not removed until one year after the financing statement lapses.

141.3 If the amendment is a continuation, a new lapse date is established for the financing statement and maintained as part of its record.

 

R154-2-142. Correction Statement.

A record is created for the correction statement that bears the file number of the original filing and the date and time of filing of the correction statement. The record of the correction statement is associated with the record of the related initial financing statement in a manner that causes the correction statement to be retrievable each time a record of the financing statement is retrieved.

 

R154-2-143. Global Filings.

143.1 The filing officer may accept for filing a single UCC document for the purpose of amending more than one financing statement, for one or both of the following purposes: amendment to change secured party name exactly as entered; amendment to change secured party address exactly as entered The global filings will be accepted on active filings only.

143.2 A blanket filing shall consist of a written document describing the requested amendment on a form approved by the filing office, and a machine readable file furnished by the remitter and created to the filing officer's specifications containing appropriate indexing information. A copy of blanket filing specifications is available from the filing officer upon request.

 

R154-2-144. Archives - Data Retention.

Data in the UCC information management system relating to financing statements that have lapsed are retained for five years from the date of lapse. Such data will be purged.

 

R154-2-145. Notice of Bankruptcy.

The filing officer takes no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the UCC information management system. Accordingly, financing statements will lapse in the information management system as scheduled unless properly continued.

 

R154-2-146. Search Requests and Reports.

The filing officer maintains for public inspection a searchable index for all records of UCC documents that provides for the retrieval of a record by the name of the debtor and by the file number of the initial financing statement to which the record relates.

 

R154-2-147. Search Requests.

Search requests shall contain the following information.

147.1 Name searched. A search request should set forth the full correct name of a debtor or the name variant desired to be searched and must specify whether the debtor is an individual or an organization. The full name of an individual shall consist of a first name, a middle name or initial, and a last name, although a search request may be submitted with no middle name or initial and, if only a single name is presented (e.g., ?Cher?) it will be treated as a last name. The full name of an organization or the name variant desired to be searched. A search request will be processed using the name in the exact form it is submitted.

147.2 Requesting party. The name and address of the person to whom the search report is to be sent.

147.3 Fee. The appropriate fee shall be enclosed, payable by a method described in rule R154-2-107.

 

R154-2-148. Optional Information.

A UCC search request may contain the following information:

Instructions on the mode of delivery requested, if other than by ordinary mail or electronic means, will be honored if the requested mode is then made available by the filing office.

 

R154-2-149. Rules Applied to Search Requests.

Computerized searches will create results based on standardized search logic applied to the name presented to the filing officer by the person requesting the search. The following parameters are used to conduct searches:

149.1 There is no limit to the number of matches that may be returned in response to the search criteria.

149.2 No distinction is made between upper and lower case letters.

149.3 Punctuation marks and accents do affect the search.

149.4 The word "the" at the beginning of the search criteria is used as part of the name searched.

149.5 Business names are searched exactly as they are printed on the search request.

149.6 After taking the preceding rules into account to modify the name of the debtor requested to be searched and to modify the names of debtors contained in active financing statements in the UCC information management system, the search will reveal only names of debtors that are contained in active financing statements and, as modified, exactly match the name requested, as modified.

149.7 The division may permit "wild card" searches on all names during uncertified searches.

149.8 Legacy filings have truncated data and will need wild card searching prior to certified searching.

 

R154-2-150. Search Responses.

Reports created in response to a search request shall include the following.

150.1 Filing officer. Identification of the filing officer and the certification of the filing officer required by the UCC.

150.2 Report date. The date the report was generated.

150.3 Name searched. Identification of the name searched.

150.4 Certification date. The certification date applicable to the report; i.e., the date and time through the search is effective to reveal all relevant UCC documents filed on or prior to that date.

150.5 Identification of initial financing statements. Identification of each unlapsed initial financing statement filed on or prior to the certification date and time corresponding to the search criteria, by name of debtor, by identification number, and by file date and file time.

150.6 History of financing statement. For each initial financing statement on the report, a listing of all related UCC documents filed by the filing officer on or prior to the certification date.

 

R154-2-151. Agricultural Liens.

Rules effecting agricultural liens are found at R154-1.]

R154-2. Utah Uniform Commercial Code, Revised Article 9 Rules.

R154-2-100. Definitions.

(1) Terms included in this Subsection R154-2-100(1) shall have the meanings stated.

(a) "Active Record" means a UCC record that has been stored in the UCC information management system and indexed in, but not yet removed from, the Searchable Indexes.

(b) "Address" means:

(i) any street address, route number (may include box) or post office box number that includes a city, state, and zip code within the United States of America; or

(ii) any address that purports to be a mailing address outside the United States of America.

(c) "Amendment Statement" means a UCC record that amends the information contained in a financing statement, and includes:

(i) an assignment;

(ii) a continuation; or

(iii) a termination.

(d)(i) "Assignment Statement" means an amendment that assigns to another person all or a part of a secured party's power to authorize an amendment to a financing statement.

(ii) Any assignment statement not clearly marked on the filing form as a partial assignment shall be deemed a full assignment.

(e) "Information Statement" means a UCC record indicating that a financing statement is inaccurate or wrongfully filed.

(f) "Filing office" or "filing officer" means the Utah Division of Corporations and Commercial Code in the Utah Department of Commerce.

(g) "Filing officer statement" means a statement entered into the filing office's UCC information management system to correct an error made by the filing office.

(h) "Initial financing statement" means a UCC record by which the filing office establishes the initial record of filing of a financing statement.

(i)(i) "Remitter" means a person who tenders a UCC record to the filing officer for filing, including:

(A) the filer;

(B) an agent of the filer responsible for tendering the record for filing; or

(C) a service provider acting as a filer's representative in the filing process.

(ii) "Remitter" does not include a person responsible merely for the delivery of the record to the filing office, such as the postal service or a courier service.

(j) "Searchable indexes" means a list maintained in the UCC information management system that may be searched by:

(i) individual debtor name(s); or

(ii) organization debtor name(s).

(k) "Secured party of record" means:

(i) a secured party of record as defined in the UCC;

(ii) a person:

(A) who is on record as a secured party; and

(B) with respect to whom an amendment is filed purporting to delete the person as a secured party of record; or

(iii) the person identified as the assignor on an amendment that purports to be an assignment.

(l) "UCC" means the Uniform Commercial Code as adopted in this State.

(m) "UCC information management system" means the data system used by the filing office to store, index, and retrieve information relating to financing statements as described in Subsection R154-2-300 of these rules.

(n) "UCC record" means:

(i) an initial financing statement;

(ii) an amendment;

(iii) an assignment;

(iv) a continuation statement;

(v) a termination statement;

(vi) a filing officer statement;

(vii) an information statement; or

(viii) any other record maintained by the filing office, whether the record is in an electronic format or paper-based.

(o) "Unlapsed record" means a UCC record that:

(i) has been stored and indexed in the UCC information management system; and

(ii) with respect to all secured parties of record, has not lapsed under UCC Section 9-515.

(2) Any term that is not defined in Subsection R154-2-100(1) but that is defined by the UCC shall have the meaning accorded the term by the UCC.

 

R154-2-101. Means to Deliver UCC Records; Time of Filing.

(1)(a) Subsection R154-2-101(1)(b) does not apply to:

(i) an initial financing statement that is being filed in connection with:

(A) a manufactured-home; or

(B) a public-finance transaction; or

(ii) a financing statement that is filed:

(A) against a debtor that is a transmitting utility; and

(B) in order to affect the filing office's determination of a lapse date under Subsection R154-2-307(3) or R154-2-308.

(b) UCC records other than those identified in Subsection R154-2-101(1)(a) may be tendered for filing at the filing office as follows:

(i) Personal delivery by the Remitter or by an agent of the Remitter.

(A) The filing shall be tendered at the filing office's physical location.

(B) The time of filing shall be the time delivery is taken by the filing office.

(C) To utilize personal delivery, the Remitter shall remain at the filing office for a determination of whether the UCC record will be taken.

(D) A filing tendered by personal delivery may subsequently be rejected by the filing office.

(ii) Courier delivery by a person other than the Remitter or an agent of the Remitter.

(A) The filing shall be tendered at the filing office's physical location.

(B) If delivered when the filing office is open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) the next close of business following the time of delivery.

(C) If delivered when the filing office is not open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) close of business on the next day following the time of delivery and on which the filing office is open for business.

(D) A filing tendered by courier may subsequently be rejected by the filing office.

(iii) Postal service delivery.

(A) The filing shall be mailed to the filing office's mailing address.

(B) If delivered when the filing office is open for business, the time of filing shall be the next close of business following the time of delivery.

(C) If delivered when the filing office is not open for business, the time of filing shall be the close of business on the next day following the date of delivery and on which the filing office is open for business.

(D) A filing tendered by postal service delivery may subsequently be rejected by the filing office.

(iv) Electronic mail.

(A) The filing shall be submitted to the filing office's e-mail address.

(B) If submitted when the filing office is open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) the next close of business following the time of submission.

(C) If submitted when the filing office is not open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) the close of business on the next day following the time of submission and on which the filing office is open for business.

(D) A filing tendered by electronic mail may subsequently be rejected by the filing office.

(v) Telefacsimile delivery.

(A) The filing shall be faxed to the filing office's fax filing telephone number.

(B) If faxed when the filing office is open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) the next close of business following the time of submission.

(C) If faxed when the filing office is not open for business, the time of filing shall be the earlier of:

(I) the time the UCC record is first examined by the filing office for processing; or

(II) the close of business on the next day following the time of submission and on which the filing office is open for business.

(D) A filing tendered by telefacsimile delivery may subsequently be rejected by the filing office.

(vi) Electronic filing -- XML format.

(A) This Subsection R154-2-101(1)(b)(vi) does not apply to:

(I) information statements; and

(II) filing officer statements.

(B) To submit an electronic filing in XML format, a Remitter shall first contact the filing office:

(I) to become an authorized XML Remitter; and

(II) to obtain the filing office implementation guide prescribing the XML Format acceptable for use.

(C) The time of filing shall be the time that the filing office's UCC information management system analyzes the relevant transmission and determines that all required elements of the transmission have been received in a required format and are machine-readable.

(vii) Electronic filing -- ANSI X12 154 format.

(A) To submit an electronic filing in ANSI X12 154 format, a Remitter shall first contact the filing office to obtain the filing office implementation guide prescribing the use of ANSI X12 154.

(B) The time of filing shall be the time the on-line system acknowledges entry of all required elements of the UCC record in the proper format.

(viii) Electronic filing -- web page data entry.

(A) To submit an electronic filing through the filing office's website, a Remitter shall follow the data entry and payment procedures provided at http://corporations.utah.gov/ucc-cfs/ucc.html .

(B) The time of filing shall be the time the on-line system acknowledges entry of all required elements of the UCC record in the proper format.

(2)(a) This Subsection R154-2-101(2)(b) applies to:

(i) an initial financing statement that is being filed in connection with:

(A) a manufactured-home; or

(B) a public-finance transaction; or

(ii) a financing statement that is filed:

(A) against a debtor that is a transmitting utility; and

(B) in order to affect the filing office's determination of a lapse date under Subsection R154-2-307(3) or R154-2-308.

(b) To file a UCC record identified in this Subsection R154-2-101(2)(a), a Remitter shall:

(i) check the appropriate box on a UCC1 Financing Statement filed with respect to the financing statement; or

(ii) transmit the requisite information in the proper field in the applicable electronic filing.

(3) Means of communication.

(a) Regardless of the method of delivery, information submitted to the UCC filing office shall be communicated in the form of characters that are:

(i) defined in a character set forth in this Subsection R154-2-101; or

(ii) otherwise determined by the filing office to be acceptable.

(b) A financing statement or amendment form shall designate separate fields for:

(i) organization name(s) and individual name(s); and

(ii) the surname, first personal name, additional name(s)/initial(s), and suffix(es) for individual name(s).

 

R154-2-102. Search Request Delivery.

(1) A UCC search request may be delivered to the filing office by any of the means by which a UCC record may be delivered to the filing office.

(2) A search request may not be delivered by checking a box or otherwise including a search request in, or on, an initial financing statement, but may be delivered in, or on, a separate search request after the initial financing statement is filed.

 

R154-2-103. Forms.

The following forms are accepted by the filing office:

(1) any form prescribed by UCC Section 9-521;

(2) any paper-based form approved by the International Association of Commercial Administrators on or prior to April 20, 2011; and

(3) any form otherwise approved by the filing office from time to time, a list of which may be obtained on request.

 

R154-2-104. Fees.

All fees are established by the Utah Legislature according to the most current fee schedule.

 

R154-2-105. Expedited Service.

(1) Expedited service is available to process filings within one business day.

(2) Expedited service requires an additional filing fee according to the fee schedule.

 

R154-2-106. Methods of Payment.

(1) Filing fees and fees for public records services may be paid by the following methods:

(a) Cash, if paid in person at the filing office.

(b) Personal check, cashier's check, or money order made payable to the filing office, if the drawer (or the issuer in the case of a cashier's check or money order) is deemed creditworthy by the filing office in its discretion .

(c) Debit or credit card, if:

(i) the card is issued by an approved issuer; and

(ii) the Remitter provides the filing officer with:

(A) the card number;

(B) the expiration date of the card;

(C) the name of the card issuer;

(D) the name of the person or entity to whom the card is issued; and

(E) the billing address for the card.

(3) Payment by debit or credit card will not be deemed tendered until the card issuer or its agent confirms payment.

 

R154-2-107. Overpayment and Underpayment Policies.

(1) Overpayment shall be handled in accordance with State and/or Agency refund policy.

(2) Underpayment. Upon receipt of a document with an insufficient fee, the filing officer shall do the following:

(a) send a notice of the deficiency to the Remitter; and

(b) return the UCC record to the Remitter pursuant to Subsection R154-2-204, along with a notice of rejection.

(3)(a) A document that is rejected and returned under this Subsection R154-2-107(2) may be refiled.

(b) The time of filing shall be the time and date on which the full filing fee is received by the filing office.

 

R154-2-108. Public Records Services.

(1) Public records services shall be provided by the filing office on a non-discriminatory basis to any member of the public.

(2) Copies of individual UCC records, bulk copies of records, and data elements from the filing office's UCC information management system shall be made available to the public by the filing office in such forms, at such times, and for such fees as the filing office may prescribe from time to time.

(3) The filing office shall make such information regarding its prescribed forms, times, and fees as is then currently available at least weekly in every medium then available to the filing office.

 

R154-2-109. Fees for Public Records Services.

(1) Fees for public records services shall be established by the filing office from time to time.

(2) The filing office's fee schedule shall be available upon request.

 

R154-2-200. Role of Filing Officer.

Sections within the 200 series of this rule (e.g., R154-2-201) pertain to the role of the filing officer.

 

R154-2-201. Accepting and Refusing Records.

(1) The duties and responsibilities of the filing officer with respect to the administration of the UCC are ministerial.

(2) In acting on a UCC record filed pursuant to these rules, the filing officer does not:

(a) determine the legal sufficiency or insufficiency of the UCC record;

(b) determine that information in the record is correct or incorrect, in whole or in part; or

(c) create a presumption that information in the UCC record is correct or incorrect, in whole or in part.

 

R154-2-202. Time for Filing a Continuation Statement.

(1) First day permitted.

(a) The first day on which a continuation statement may be filed is the date six months prior to the date on which the related financing statement is scheduled to lapse.

(b) If no date can be generated pursuant to this Subsection R154-2-202(1)(a), the first day on which a continuation statement may be filed is the last day of the sixth month preceding the month in which the financing statement is scheduled to lapse.

(c) Subsections R154-2-202(1)(a) and (b) are subject to:

(i) the ability of the filing office to take delivery of the continuation statement as tendered; and

(ii) the continuation statement being properly delivered to the filing office pursuant to Subsection R154-2-101.

(2) Last day permitted.

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

(b) Subsection R154-2-202(2)(a) is subject to:

(i) the ability of the filing office to take delivery of the continuation statement as tendered; and

(ii) the continuation statement being properly delivered to the filing office pursuant to Subsection R154-2-101.

(3) In order to ensure that a continuation statement is timely filed, a Remitter shall effect delivery of the filing:

(a) on or prior to the last day permitted; and

(b) on a date and at a time when the filing office is open for business.

 

R154-2-203. Grounds for Refusal.

The filing office:

(1) shall refuse to accept a UCC record that does not provide an address that meets the minimum requirements as set forth in Subsection R154-2-100(1)(b); and

(2) may refuse to accept a UCC record for any one or more reasons as set forth in UCC Section 9-516.

 

R154-2-204. Procedure Upon Refusal.

(1) Except as provided in Subsection R154-2-107, if the filing officer finds grounds to refuse a UCC record, the filing officer shall not refund the filing fee.

(2) Communication of the refusal, the reason(s) for the refusal, and other related information shall be made to the Remitter:

(a)(i) as soon as practicable; and

(ii) no later than two business days after the refused UCC record is received by the filing office; and

(b)(i) by the same means as the means by which such UCC record was delivered to the filing office;

(ii) by mail; or

(iii) by such more expeditious means as the filing office may determine.

(3) Records of refusal, including a copy of the refused

UCC record and the ground(s) for refusal, shall be maintained by the filing office.

 

R154-2-205. Refusal Errors.

(1) If a secured party or a Remitter demonstrates to the satisfaction of the filing officer that a UCC record that was refused for filing should not have been refused under Subsection R154-2-203:

(a) the filing officer shall file the UCC record with the filing date and time the UCC record was originally tendered for filing; and

(b) a filing officer statement record relating to the relevant initial financing statement shall be placed in the UCC information management system:

(i) on the date that the corrective action is taken; and

(ii) providing the date of the correction and an explanation of the nature of the corrective action taken.

(2) A record created under this Subsection R154-2-205(1) shall be preserved for so long as the record of the initial financing statement is preserved in the UCC information management system.

 

R154-2-206. Notification of Defects.

(1) Nothing in these rules shall be construed or interpreted to prevent a filing officer from communicating to a filer or a Remitter any apparent potential defect(s) in a UCC record, regardless of whether the filing is accepted or refused for filing.

(2) The filing office is under no obligation to screen filings for defects.

(3) The responsibility for the legal effectiveness of filing rests with filers and Remitters, and the filing office bears no responsibility for such effectiveness.

 

R154-2-300. UCC Information Management System.

Sections within the 300 series of this rule (e.g., R154-2-301) pertain to the UCC Information Management System.

 

R154-2-301. General Provisions.

(1) The filing office shall use a UCC information management system to store, index, and retrieve information relating to financing statements.

(2) The UCC information management system shall include an index of the names of debtors included on financing statements that are Active Records.

 

R154-2-302. Primary Data Elements.

The primary data elements used in the UCC information management system are the following:

(1) Identification numbers.

(a)(i) Each initial financing statement is identified by a file number.

(ii) Identification of the initial financing statement is stamped on written UCC records or otherwise permanently associated with the record maintained for UCC records in the UCC information management system.

(iii) A record is created in the UCC information management system for each initial financing statement, and all information comprising such record is maintained in the system.

(iv) The record is identified by the same information assigned to the initial financing statement.

(b)(i) A UCC record other than an initial financing statement is identified by a unique file number assigned by the filing officer.

(ii) In the UCC information management system, records of all UCC records other than initial financing statements are linked to the record of their related initial financing statement.

(2) Type of Record. The type of UCC record from which data is transferred is identified in the UCC information management system from information supplied by the Remitter.

(3) Filing date and filing time.

(a) The filing date and filing time of UCC records are stored in the UCC information management system.

(b) Calculation of the lapse date of an initial financing statement is based upon the filing date.

(4) Identification of parties. The names and addresses of debtors and secured parties are transferred from UCC records to the UCC information management system.

(5) Page count. The total number of pages, including staff classification marks, in a UCC record is maintained in the UCC information management system.

(6) Lapse indicator.

(a) An indicator is maintained by which the UCC information management system identifies:

(i) whether or not a financing statement will lapse; and,

(ii) if applicable, when a financing statement will lapse. (b) The lapse date is determined as provided in Subsections R154-2-307(3), 308, and 309(1).

(7) Indexes of names.

(a) The filing office maintains in the UCC information management system:

(i) a searchable index of organization debtor names; and

(ii) a searchable index of individual debtor names.

(b)(i) The filing office may also maintain a searchable index of names of secured parties of record.

(ii) Such an index need not be a separate database, but may be comprised of records in the UCC information management system identified to be included in such searchable index.

 

R154-2-303. Individual Debtor Names.

(1) Individual debtor names. For purposes of this rule, an individual debtor name is any name provided as a debtor name in a UCC record in a format that identifies the name as that of a debtor who is an individual, without regard to the nature or character of the name or to the nature or character of the actual debtor.

(2) Individual name fields.

(a) Individual debtor names are stored in files that include only the individual debtor names and not organization debtor names.

(b) Separate data entry fields are established for:

(i) surnames (last or family names);

(ii) first personal names (given names); and

(iii) additional name(s)/initial(s) of individuals.

(c) The name of a debtor with a single name (e.g., "Cher") is treated as a surname and shall be entered in the individual surname field.

(d) The filing officer assumes no responsibility for the accurate designation of the components of a name but shall accurately enter the data in accordance with the filer's designations.

(3) Titles, prefixes, and suffixes.

(a) Titles, prefixes (e.g. "Ms."), and suffixes or indications of status (e.g. "M.D.") are not typically part of a debtor's name.

(b) Suffixes used to distinguish between family members with otherwise identical names (e.g., "JR.") may be provided in the Suffix field.

(c) When entering a "name" into the UCC information management system, the filing office will enter data exactly as provided by the filer.

(4) Extended debtor name field.

(a) The Financing Statement form has limited space for individual debtor names. If any portion of the individual debtor name is too long for the corresponding field, the filer shall check the box that indicates the name is too long and enter the name in item 10 of the Addendum Form UCC1AD.

(b) A filing officer shall not refuse to accept a Financing Statement that lacks debtor information in item 1 and/or item 2 if the record includes an Addendum that provides a debtor name in item 10.

(5) Truncation - individual names. Personal name fields in the UCC information management system are fixed in length. Although filers should continue to provide full names on their UCC records, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field. The lengths of data entry name fields are as follows:

(a) Surname: 50 characters;

(b) First personal name: 50 characters;

(c) Additional name(s)/initial(s): 50 characters; and

(d) Suffix: 5 characters.

 

R154-2-304. Organization Debtor Names.

(1) For purposes of these rules, an "organization debtor name" is any name provided as a debtor name in a UCC record in a format that identifies the name as that of a debtor that is an organization, without regard to the nature or character of the name or to the nature or character of the actual debtor.

(2) Single field.

(a) Organization debtor names are stored in files that include only organization debtor names and not individual debtor names.

(b) A single field is used to store an organization debtor name.

(3) Truncation - organization names. The organization debtor name field in the UCC information management system is fixed in length. The maximum length is 500 characters. Although filers should continue to provide full names on their UCC

records, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the organization debtor name field.

 

R154-2-305. Collateral Being Administered by a Decedent's Personal Representative.

(1) The debtor name to be provided on a financing statement when the collateral is being administered by a decedent's personal representative is the name of the relevant decedent.

(2) In order for the UCC information management system to function in accordance with the usual expectations of filers and searchers, the filer shall provide the debtor name as an individual debtor name.

(3) The filing office shall enter data submitted by a filer in the fields designated by the filer exactly as the data appears in such fields.

 

R154-2-306. Collateral Held in a Trust.

(1) The debtor name to be provided when the collateral is held in a trust that is not a registered organization is:

(a) the name of the trust as set forth in the trust's organic record(s), if the trust has such a name; or

(b) if the trust is not so named, the name of the trust's settlor.

(2) In order for the UCC information management system to function in accordance with the usual expectations of filers and searchers:

(a) the name of a trust or of a settlor that is an organization shall be provided as an organization debtor name without regard to the nature or character of the debtor; and

(b) the name of a settlor who is an individual shall be provided as an individual debtor name without regard to the nature or character of the debtor.

(3) The filing office shall enter data submitted by a filer in the fields designated by the filer exactly as the data appears in such fields.

 

R154-2-307. Initial Financing Statement.

Upon the filing of an initial financing statement, the status of the parties and the status of the financing statement shall be as follows.

(1) Status of secured party.

(a) If no assignee is named, each secured party named on an initial financing statement shall be a secured party of record.

(b) If the UCC record names an assignee:

(i) the secured party/assignor shall not be a secured party of record; and

(ii) the secured party/assignee shall be a secured party of record.

(2) Status of debtor. Each debtor name provided by the initial financing statement shall be indexed in the UCC information management system for as long as the financing statement is an Active Record.

(3) Status of financing statement.

(a) The financing statement shall be an Active Record.

(b) A lapse date shall be calculated as follows:

(i) Unless this Subsection R154-2-307(3)(b)(ii) or (iii) applies, the lapse date shall be five years from the file date.

(ii) If the initial financing statement indicates, as provided in Subsection R154-2-101(2), that it is filed with respect to a public-financing transaction or a manufactured-home transaction, the lapse date shall be thirty years from the file date.

(iii) If the initial financing statement indicates, as provided in Subsection R154-2-101(2), that it is filed against a transmitting utility, there shall be no lapse date.

 

R154-2-308. Amendments Generally.

(1)(a) Unless this Subsection R154-2-308(1)(b)or (c) applies, the filing of an amendment has no effect on the status of the secured parties of record.

(b) If an amendment adds a debtor or a secured party, the new debtor or secured party shall be:

(i) added to the appropriate index; and

(ii) associated with the record of the financing statement in the UCC information management system.

(c) If an amendment designates an assignee, the filing shall cause the assignee to be added as a secured party of record with respect to the affected financing statement in the UCC information management system.

(2)(a) Notwithstanding the filing of an amendment that deletes a debtor or a secured party from a financing statement, no debtor or secured party of record is deleted from the UCC information management system.

(b) A deleted secured party shall be treated by the filing office as a secured party of record, as the filing office cannot verify the effectiveness of an amendment.

(3) In general, the filing of an amendment does not affect the status of the financing statement.

 

R154-2-309. Continuation Statement.

(1) Continuation of lapse date.

(a) Upon the timely filing of one or more continuation statements by one or more secured parties of record, the lapse date of the financing statement shall be postponed:

(i) one time only, regardless of whether more than one continuation statement is filed within a given 6-month period prior to a lapse date; and

(ii) for a period of five years.

(b) Notwithstanding the immediate postponement of the lapse date with respect to one or more secured parties of record who timely file a continuation statement within a given 6-month period prior to a lapse date, such lapse date remains effective solely for purposes of determining whether a subsequent continuation statement filed in the same 6-month period is timely.

(2) Status. The filing of a continuation statement shall have no effect upon the status of:

(a) any party to the financing statement; or

(b) the financing statement.

 

R154-2-310. Termination.

The filing of a termination statement shall have no effect upon the status of:

(1) any party to the financing statement; or

(2) the status of the financing statement.

 

R154-2-311. Information Statement.

The filing of an information statement shall have no effect upon the status of:

(1) any party to the financing statement;

(2) the status of the financing statement itself; or

(3) the data maintained in the UCC information management system.

 

R154-2-312. Procedure upon Lapse.

If there is no timely filing of a continuation with respect to a financing statement, the financing statement lapses on its lapse date, but no action is then taken by the filing office.

 

R154-2-313. Removal of Record.

(1) Unless this Subsection R154-2-313(2) applies, a financing statement shall remain as an Active Record until at least one year after it lapses.

(2) If a financing statement indicates that it is to be filed against a transmitting utility, it shall remain as an Active Record until at least one year after it is terminated with respect to all secured parties of record.

(3)(a) On or after the first anniversary of a lapse or termination date:

(i) the filing office or the UCC information management system may remove the financing statement and all related UCC records from the Searchable Indexes or from the UCC information management system; and

(ii) upon such removal, the removed UCC Records shall cease to be Active Records.

(b) UCC Records removed from the UCC information management system shall be maintained as provided by filing office policy.

 

R154-2-400. Filing and Data Entry Procedures.

Sections within the 400 series of this rule (e.g., R154-2-401) pertain to filing and data entry procedures.

 

R154-2-401. Errors of the Filing Office.

(1) The filing office may correct data entry and indexing errors of filing office personnel in the UCC information management system at any time.

(2) If a correction is made to a record of a financing statement after the filing office has issued a search report with a through date and time (see Subsection R-154-2-506(2)(d)) that is on or after the filing date and time of the financing statement, the filing office shall associate with the record of the financing statement in the UCC information management system a note. The note shall set forth the date of the corrective action and an explanation of the correction.

(3) The filing office shall allow a Remitter 30 days to notify the filing office of any data entry errors, and the filing office shall correct those errors.

 

R154-2-402. Data Entry.

(1) Data are entered into the UCC information management system exactly as provided in a UCC record, without regard to apparent errors.

(2) Data provided in electronic form is transferred to the UCC information management system exactly as submitted by the Remitter.

 

R154-2-403. Verification of Data Entry.

(1) The filing office shall verify accuracy of the data from UCC records entered in accordance with Subsection R-154-2-402 into the UCC information management system.

(2) Data entry performed by a Remitter with respect to electronically filed UCC record(s) is the responsibility of the Remitter and is not verified by the filing office

 

R154-2-404. Master Amendments.

(1) The filing office shall accept master amendments in writing stating the amendment requested.

(2)(a) The filing office shall provide an excel spreadsheet listing the filing(s) affected.

(b) It is the responsibility of the Remitter to acknowledge or correct the spreadsheet.

(c) Only those filings on the spreadsheet will be affected by the master amendment.

(3) The fee shall be a single filing fee established for master amendments and not per record amended.

 

R154-2-405. Notice of Bankruptcy.

The filing officer shall take no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the UCC information management system.

 

R154-2-406. Redaction of Certain Information.

The filing officer shall redact certain information from the information it provides to searchers and bulk data purchasers in accordance with Utah Code Title 63G, Chapter 2, the Utah Government Records Access and Management Act.

 

R154-2-500. Search Requests and Reports.

Sections within the 500 series of this rule (e.g., R154-2-501) pertain to search requests and reports.

 

R154-2-501. General Requirements.

(1) The filing officer maintains for public inspection a searchable index for all Active Records in the UCC information management system.

(2) Active Records shall be retrievable by:

(a) the name of the debtor; or

(b) the file number of the related initial financing statement.

(3) Each Active Record related to an initial financing statement is retrieved with the initial financing statement using either retrieval method identified in this Subsection R154-2-501(2).

 

R154-2-502. Search Requests -- Required Information.

(1) Search requests shall include the following:

(a) Name searched. A search request shall set forth the name of the debtor to be searched using designated fields for:

(i) organization or individual surname;

(ii) first personal name; and

(iii) additional name(s)/initial(s).

(b) Requesting party. A search request shall set forth the name and address of the person to whom the search result is to be sent.

(c) Fee. The appropriate fee shall be tendered by a method described in Subsection R154-2-106.

(d) Search logic.

(i) A search request shall specify if a search methodology other than that described in Subsection R154-2-504(2) is to be applied in conducting the search.

(ii) If no such methodology is specified, the methodology described in Subsection R154-2-504(2) shall be applied.

(2) A search request shall be processed using the data and designated fields exactly as submitted, including the submission of no data in a given field, without regard to the nature or character of the debtor that is the subject of the search.

 

R154-2-503. Search Requests -- Optional Information.

A search request may include the following:

(1) Copies. A request may limit the copies of UCC records that would normally be provided with a search report by requesting that no copies be provided or that copies be limited to those UCC records that:

(a) include a particular debtor address;

(b) include a particular city in the debtor address;

(c) were filed on a particular date or within a particular range of dates; or

(d) include a particular secured party name.

(2) Scope of search. A search request may ask for a search that reports all Active Records retrieved by the search rather than only Unlapsed Records retrieved by the search.

(3) Mode of delivery.

(a) A search request may specify a mode of delivery for search results.

(b) Any such request will be honored to the extent the requested mode is made available by the filing office and all requisite fees are tendered.

(4) Search request with filing.

(a) If a filer submits a search request with an initial financing statement, the search request shall be deemed to request a search to be conducted as soon as practicable such that it would include all UCC records filed against the debtor name(s) provided on the initial financing statement on or prior to the date the initial financing statement is filed.

(b) A filer may indicate on the search request that it should be held until the filing office through date meets or exceeds the filing date of the initial financing statement.

 

R154-2-504. Search Methodology.

(1)(a) Search results are produced by the application of search logic to the name presented to the filing officer.

(b) Human judgment does not play a role in determining the results of the search.

(2) Standard search logic. The following rules describe the filing office's standard search logic and apply to all searches except those where the search request specifies that a non-standard search logic be used.

(a) There is no limit to the number of matches that may be returned in response to the search criteria.

(b) No distinction is made between upper and lower case letters.

(c)(i) Punctuation marks and accents are disregarded.

(ii) For the purposes of this rule, punctuation and accents include all characters other than:

(A) the numerals 0 through 9; and

(B) the letters A through Z, whether upper or lower case, of the English alphabet.

(d) To the extent practicable as determined by the filing office's programming of its UCC information management system, words and abbreviations at the end of an organization name that indicate the existence or nature of the organization are treated as follows:

(i) All spaces are disregarded.

(ii)(A) For first personal name and additional name(s)/initial(s) of individual debtor names:

(I) initials are treated as the logical equivalent of all names that begin with such initials; and

(II) first personal name and no additional name(s)/initial(s) is equated with all additional name(s)/initial(s).

(B) For example, a search request for "John A. Smith" would cause the search to retrieve all filings against all individual debtors with:

(I) "John" or the initial "J" as the first personal name;

(II) "Smith" as the surname; and

(III) the initial "A" or any name beginning with "A" in the additional name(s)/initial(s) field.

(C) If the search request were for "John Smith" (first personal name and surname with no designation in the additional name(s)/initial(s) field), the search would retrieve all filings against individual debtors with:

(I) "John" or the initial J as the first personal name;

(II) "Smith" as the surname; and

(III) any name, any initial, or no name or initial in the additional name(s)/initial(s) field.

(iii) If the name being searched is the surname of an individual debtor name without any first personal name or additional name(s)/initial(s) provided, the search will retrieve from the UCC information management system all financing statements with individual debtor names that consist of only the surname.

(3) After using the preceding rules to modify the name being searched, the search will retrieve from the UCC information management system all Unlapsed Records, or, if requested by the searcher, all Active Records that pertain to financing statements with debtor names that exactly match the modified name being searched.

(4) Non-standard search logic. Non-standard search logic, such as a "wild card" search can be applied to a non-certified search upon request.

 

R154-2-505. Changes in Standard Search Logic.

If the filing office changes its standard search logic or the implementation of its standard search logic in a manner that could alter search results, the filing office will provide public notice of such change.

 

R154-2-506. Search Responses.

The response to a search request shall include the following:

(1) Copies.

(a) Copies of all UCC records retrieved by the search, unless:

(i) limited copies are requested by the searcher; or

(ii) the searcher requests a certified search.

(b) Copies will reflect any redaction of personal identifying information required by law.

(2) Introductory information. A filing officer shall include the following information with a UCC search response:

(a) identification of the filing office responsible for the search response;

(b) unique number that identifies the search report;

(c) date and time the report was generated;

(d) through date and time, meaning the date and time at, or prior to, which a UCC record must have been filed with the filing office in order for it to be reflected on the search;

(e) certification language consistent with current language;

(f) whether the scope includes both active and unlapsed records;

(g) search logic used;

(h) search logic disclaimer language;

(i) name searched, as provided by searcher;

(j) normalized name as provided by Subsection R154-2-504; and

(k) lien type searched, with the caveat that only those liens filed in the Utah Division of Corporations and Commercial Code that are statutorily permitted may be searched.

(3) Report. The search report shall contain the following:

(a) identification of the filing office responsible for the search report;

(b) unique number assigned under this Subsection;

(c) identification of each initial financing statement, including:

(i) a listing of all related amendments;

(ii) information statements, or filing officer notices, filed on or prior to the through date corresponding to the search criteria (including whether the searcher has requested Active Records or only Unlapsed Records);

(iii) initial financing statement file number;

(iv) date and time the initial financing statement was filed;

(v) lapse date;

(vi) debtor name(s) appearing of record;

(vii) debtor address(es) appearing of record;

(viii) secured party name(s) appearing of record;

(ix) secured party address(es) appearing of record;

(x) indication of type of each amendment, if any;

(xi) date and time each amendment, if any, was filed;

(xii) amendment file number of each amendment, if any;

(xiii) date and time an information statement, if any, was filed; and

(xiv) date and time a filing officer statement, if any, was filed.

 

R154-2-600. Agricultural Liens.

Rules affecting agricultural liens are found at Utah Administrative Code Section R154-1.

 

KEY: banking, equipment leasing, filing documents

Date of Enactment or Last Substantive Amendment: [March 14, 2003]2014

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 70A-9a et seq.

 


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2014/b20140315.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

Text to be deleted is struck through and surrounded by brackets ([example]). Text to be added is underlined (example).  Older browsers may not depict some or any of these attributes on the screen or when the document is printed.

For questions regarding the content or application of this rule, please contact Kathy Berg at the above address, by phone at 801-530-6216, by FAX at 801-530-6438, or by Internet E-mail at kberg@utah.gov.  For questions about the rulemaking process, please contact the Division of Administrative Rules.