30 KAR 5:040. UCC Information
Management System.
RELATES
TO: KRS Chapter 355.9-515, 355.9-519, 355.9-526
STATUTORY
AUTHORITY: KRS 355.9-526(1)
NECESSITY,
FUNCTION, AND CONFORMITY: KRS 355.9-526(1) requires the Secretary of State to
promulgate administrative regulations implementing of KRS Chapter 355.9. This administrative
regulation establishes the requirements for the UCC Information Management
System.
Section
1. General. The filing officer shall use an information management system to
store, index, and retrieve information relating to financing statements. The information
management system shall include an index of the names of debtors included on
financing statements that are active records.
Section
2. Primary Data Elements. The primary data elements used in the UCC Information
Management System shall be the following:
(1)
Identification numbers.
(a)
Each initial financing statement shall be identified by its file number. Identification
of the initial financing statement shall be stamped on written UCC records or
otherwise permanently associated with the record maintained for UCC records in
the UCC Information Management System. A record shall be created in the Information
Management System for each initial financing statement, and all information
comprising the record shall be maintained in the system. The record shall be
identified by the same information assigned to the initial financing statement.
(b)
A UCC record other than an initial financing statement shall be identified by a
unique file number assigned by the filing officer. In the UCC Information
Management System, records of all UCC records other than initial financing
statements shall be linked to the record of their related initial financing
statement.
(2)
Type of record. The type of UCC record from which data is transferred shall be
identified in the UCC Information Management System from information supplied
by the remitter.
(3)
Filing date and filing time. The filing date and filing time of UCC records
shall be stored in the UCC Information Management System. Calculation of the
lapse date of an initial financing statement shall be based upon the filing
date and in accordance with KRS 355.9-515.
(4)
Identification of parties. The names and addresses of debtors and secured
parties shall be transferred from UCC records to the UCC Information Management
System.
(5)
Page count. The total number of pages in a UCC record shall be maintained in
the UCC Information Management System.
(6)
Lapse indicator. An indicator shall be maintained by which the Information
Management System identifies whether or not a financing statement will lapse
and, if it does, when it will lapse.
(7)
Indexes of names. The filing office shall maintain in the UCC Information
Management System a searchable index of organization debtor names and a
searchable index of individual debtor names.
(8)
Status of financing statement. In the UCC Information Management System, each
financing statement shall list a status of active or inactive.
Section
3. Individual Debtor Names. For purposes of this administrative regulation, an "individual
debtor name" shall be 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.
(1)
Individual name fields. Individual debtor names shall be stored in files that
include only the individual debtor names, and not organization debtor names.
Separate data entry fields shall be established for surnames (last or family
names), first personal names (given), and additional names and initials of
individuals. The name of a debtor with a single name (e.g., Cher) shall be
treated as a surname and shall be entered in the individual surname field. The
filing officer assumes no responsibility for the accurate designation of the
components of a name but shall accurately enter the date in accordance with the
filer’s designations.
(2)
Titles, prefixes, and suffixes. Titles, prefixes (e.g. "Ms."), and
suffixes or indications of status (e.g. "M.D.") shall not be part of
a debtor’s name. Suffixes used to distinguish between family members with
identical names (e.g. "JR.") shall be provided in the suffix field. However,
when entering a "name" into the UCC Information Management System,
the data shall be entered exactly as it appears.
(3)
Extended debtor name field. 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 is instructed to check the box that
indicates the name was too long and enter the name in item ten (10) of the Addendum.
A filing officer shall not refuse to accept a financing statement that lacks
debtor information in item one (1) or item two (2) if the record includes an Addendum
that provides a debtor name in item ten (10).
(4)
Truncation of individual names. Personal name fields in the UCC Information
Management System shall be fixed in length. Although filers shall continue to
provide full names on their UCC records, a name that exceeds the fixed length
shall be entered as presented to the filing officer, up to the maximum length
of the data entry field. The lengths of data entry name fields shall be as
follows:
(a)
Surname: fifty (50) characters.
(b)
First personal name: fifty (50) characters.
(c)
Additional name(s) or initial(s): fifty (50) characters.
(d)
Suffix: fifty (50) characters.
Section
4. Organization Debtor Names. For purposes of this administrative regulation,
an "organization debtor name" shall be 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 organization, without regard to the nature or character of the name
or to the nature or character of the actual debtor.
(1)
Single field. Organization debtor names shall be stored in files that include
only organization debtor names and not individual debtor names. A single field
shall be used to store an organization debtor name.
(2)
Truncation of organization names. The organization debtor name field in the UCC
Information Management System shall be fixed in length. The maximum length
shall be 300 characters. Although filers shall continue to provide full names
on their UCC records, a name that exceeds the fixed length shall be entered as
presented to the filing officer, up to the maximum length of the organization
debtor name field.
Section
5. Collateral Being Administered by a Decedent’s Personal Representative. The
debtor name to be provided on a financing statement if the collateral is being
administered by a decedent’s personal representative shall be the name of the
relevant decedent. 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. However, the
filing office shall enter data submitted by a filer in the fields designated by
the filer exactly as it appears in the fields.
Section
6. Collateral Held in a Trust. (1) The debtor name to be provided if the
collateral is held in a trust that is not a registered organization shall be:
(a)
The name of the trust as set forth in its organic record, if the trust has a
name in its organic record; 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, the name of a trust or of
a settlor that is an organization shall be provided as an organization debtor
name, and the name of a settlor who is an individual shall be provided as an
individual debtor name, in each case without regard to the nature or character
of the debtor. However, the filing office shall enter data submitted by a filer
in the fields designated by the filer exactly as it appears in the fields.
Section
7. 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. Each secured party named on an initial financing
statement shall be a secured party of record, except that if the UCC record
names an assignee, the secured party or assignor shall not be a secured party
of record and the secured party or 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 if the financing
statement is an active record.
(3)
Status of financing statement. The financing statement shall be an active record
as provided in KRS 355.9-519(7). A lapse date shall be calculated in accordance
with KRS 355.9-515.
Section
8. Amendments Generally. (1) Upon the filing of an amendment, the status of the
parties shall be as follows:
(a)
Unchanged, except that in the case of an amendment that adds a debtor or a
secured party, the new debtor or secured party shall be added to the
appropriate index and associated with the record of the financing statement in
the UCC Information Management System, and an amendment that designates an
assignee 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.
(b)
Notwithstanding the filing of an amendment that deletes a debtor or a secured
party from a financing statement, a debtor or secured party of record shall not
be deleted from the UCC Information Management System.
(c)
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.
(2)The
filing of an amendment shall not affect the status of the financing statement.
An amendment that indicates that the debtor is a transmitting utility shall
cause the filing office to reflect in the UCC Information Management System
that the amended financing statement has no lapse date.
Section
9. Assignment of Powers of Secured Party. (1) Status of the parties. An
assignment shall have no effect on the status of the parties to the financing
statement, except that each assignee named in the assignment shall become a
secured party.
(2)
Status of financing statement. An assignment shall have no effect upon the
status of the financing statement.
Section
10. Continuation Statement. (1) Continuation of lapse date. Upon the timely
filing of one (1) or more continuation statements by a secured party, the lapse
date of the financing statement shall be postponed for five (5) years. The
lapse date shall be postponed once, even if more than one (1) continuation
statement is filed within a given six (6) month period prior to a lapse date. If
the lapse date is postponed due to one (1) or more lawfully filed continuation
statements, the original lapse date shall continue to be used solely for
purposes of determining the timeliness of any additional continuation statement
filings.
(2)
Status. The filing of a continuation shall have no effect upon the status of
any party to the financing statement or upon the status of the financing
statement.
Section
11. Termination. The filing of a termination statement shall have no effect
upon the status of any party to the financing statement or upon the status of
the financing statement.
Section
12. Information statement. The filing of an information statement shall have no
effect upon the status of any party to the financing statement, the status of
the financing statement, or to the information maintained in the UCC
Information Management System.
Section
13. Filing Officer Statement. A filing officer statement shall affect the
status of parties and of the relevant financing statement as provided in the
corrective action described as having been taken in the filing officer
statement.
Section
14. Procedure upon Lapse. If there is no timely filing of a continuation with
respect to a financing statement, the financing statement shall lapse on its
lapse date but action shall not be taken by the filing office.
Section
15. Removal of Record. A financing statement shall remain as an active record
until at least one (1) year after it lapses, or if it is indicated to be filed
against a transmitting utility, until at least one (1) year after it is
terminated with respect to all secured parties of record. On or after the first
anniversary of the lapse or termination date, the filing office or the UCC
Information Management System shall remove the financing statement and all
related UCC records from the searchable indexes or from the UCC Information
Management System. Upon the removal, the removed UCC records shall cease to be active
records.
Section
16. XML Documents. The XML format as adopted by the International Association
of Corporation Administrators shall be used for electronic transmission of UCC
records, except correction statements. At the request of an authorized XML
remitter, the filing officer shall identify which versions and releases of the
XML format are acceptable to the filing office.
Section
17. Direct On-line (Non-XML) Data Entry Procedures. A UCC record, except
correction statements, may be filed electronically by accessing the Secretary
of State’s Web site.
Section
18. Incorporation by Reference. (1) The following material is incorporated by
reference:
(a)
"Addendum", Secretary of State, Uniform Commercial Code Branch,
04/20/11; and
(b)
"Financing Form", 04/20/11.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Secretary of State, UCC Branch, 700 Capital Avenue, State Capitol, Suite 152,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. (28 Ky.R.
998; Am. 1346; eff. 12-19-2001; 40 Ky.R. Am; 348; 777; eff. 11-1-2013.)
