41-10 Fraudulent and Harassing Financing Statement Records
Download pdf
Loading PDF...
<![CDATA[CHAPTER 41-10FRAUDULENT AND HARASSING FINANCING STATEMENT RECORDS41-10-01. Definitions. As used in this chapter:1."Authorized", when used with reference to a financing statement record, means that<br>the financing statement record was filed by a person authorized to do so as provided<br>in sections 41-09-80 and 41-09-130.2."Debtor" means a natural person whose name was provided in a financing<br>statement record as an individual debtor or one of the types of persons listed in<br>section 41-09-76.3."Filing office" or "filing officer" refers to the appropriate office or officer where a<br>financing statement record is to be filed as provided by section 41-09-72, including<br>the county recorder, the secretary of state, and other designated filing officers.4."Financing statement record" means an initial financing statement, an amendment<br>that adds collateral covered by a financing statement, and an amendment that adds<br>a debtor to a financing statement as such terms are used in this title.41-10-02. Criminal penalty.1.A person commits an offense if the person knowingly causes to be presented for<br>filing in a filing office, or promotes the filing in a filing office, of a financing statement<br>record that the person knows:a.Not to be authorized under section 41-09-80 or 41-09-130 by the natural person<br>whose name was provided as an individual debtor in the financing statement;<br>andb.Was filed or presented for filing with the intent that:(1)The financing statement record be used to harass or hinder the natural<br>person whose name was provided as an individual debtor in the financing<br>statement record without that person's authorization; or(2)The financing statement record be used to defraud any person.2.An offense under this section is a class A misdemeanor, unless it is alleged and<br>shown at the trial of the offense that the person had previously been convicted under<br>this provision on two or more occasions, in which event the offense is a class C<br>felony.41-10-03. Civil penalty.1.A person shall not knowingly cause to be presented for filing in a filing office or<br>promote the filing of a financing statement record in a filing office that the person<br>knows:a.Not to be authorized under section 41-09-80 or 41-09-130 by the natural person<br>whose name was provided as an individual debtor in the financing statement<br>record; andb.Was filed or presented for filing with the intent that:Page No. 1(1)The financing statement record be used to harass or hinder the natural<br>person whose name was provided as an individual debtor in the financing<br>statement record without that person's authorization; or(2)The financing statement record be used to defraud any person.2.A person who violates subsection 1 is liable to each such debtor for:a.The greater of ten thousand dollars or the actual damages caused by the<br>violation;b.Court costs;c.Reasonable attorney's fees;d.Related expenses of bringing the action, including investigative expenses; ande.Exemplary damages in the amount determined by the court.41-10-04. Cause of action - Injunction.1.The following persons may bring an action to enjoin violation of this chapter or to<br>recover civil damages under this chapter:a.The natural person whose name was provided as an individual debtor in the<br>financing statement record filed without that person's authorization under<br>section 41-09-80, any person who owns an interest in the collateral described<br>or indicated in the financing statement record, or any person directly harmed by<br>the filing of the financing statement record;b.The attorney general;c.A state's attorney;d.A municipal attorney; ande.A person who has been damaged as a result of an action taken in reliance on<br>the filed financing statement record.2.A filing officer may refer a matter to the attorney general or other appropriate person<br>for filing the legal action under this chapter.41-10-05. Venue. An action under this chapter may be brought in any district court in thecounty in which the financing statement record is presented for filing or in a county where any of<br>the persons who may bring an action under this chapter reside.41-10-06. Other remedies. This law is cumulative of other law under which a personmay obtain judicial relief with respect to any filed or recorded document.Page No. 2Document Outlinechapter 41-10 fraudulent and harassing financing statement records]]>