9518 - Claim concerning inaccurate or wrongfully filed record.
§ 9518. Claim concerning inaccurate or wrongfully filed record. (a) Correction statement.--A person may file in the filing office a correction statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed. (b) Sufficiency of correction statement.--A correction statement must: (1) identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates; (2) indicate that it is a correction statement; and (3) provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed. (c) Record not affected by correction statement.--Except as provided in subsection (d), the filing of a correction statement does not affect the effectiveness of an initial financing statement or other filed record. (d) Fraudulent financing statements.-- (1) The Department of State may conduct an administrative hearing to determine if an initial financing statement was fraudulently filed in accordance with the following: (i) The hearing shall be conducted in accordance with 2 Pa.C.S. (relating to Administrative Law and Procedure). The department shall determine the initial financing statement to be fraudulently filed for purposes of this subsection if it determines that no rational basis exists under section 9509 (relating to persons entitled to file a record) entitling the person to file the initial financing statement and it appears that the person filed the initial financing statement with intent to annoy, harass or harm the debtor. (ii) If the department determines that the initial financing statement was fraudulently filed and no timely appeal of the determination was filed, the department shall file a correction statement with respect to the initial financing statement indexed there. In addition to complying with the requirements of subsection (b), the correction statement filed by the department under this paragraph shall state all of the following: (A) the correction statement was filed by the department under this subsection; (B) the department has determined that the initial financing statement was fraudulently filed and that the person had the right to appeal the decision to a court of competent jurisdiction; (C) the initial financing statement found to be fraudulently filed may be ineffective; and (D) the reasons why the department found the initial financing statement to have been fraudulently filed. (iii) A correction statement filed by the department in accordance with paragraph (ii) creates a rebuttable presumption that the initial financing statement found to be fraudulently filed is ineffective. (iv) A person adversely affected by a determination of the department under paragraph (i) may appeal the determination in accordance with 2 Pa.C.S. § 702 (relating to appeals). (v) If the department determines that the initial financing statement was fraudulently filed and the determination is appealed to Commonwealth Court, the department shall file a correction statement with respect to the initial financing statement indexed there only upon affirmation by the court of its determination. In addition to complying with the requirements of subsection (b), the correction statement shall state all of the following: (A) the correction statement was filed by the department under this subsection; (B) the department has determined that the initial financing statement was fraudulently filed and that the person had the right to appeal the decision to a court of competent jurisdiction; (C) the initial financing statement found to be fraudulently filed is ineffective; and (D) the reasons why the department found the initial financing statement to have been fraudulently filed. (vi) If the department files a correction statement with respect to the initial financing statement indexed there under this subsection, it shall refer the matter for criminal prosecution to the Office of Attorney General pursuant to 18 Pa.C.S. § 4911 (relating to tampering with public records or information). (2) Nothing in this subsection limits the rights or remedies the debtor may have with respect to an initial financing statement that has been fraudulently filed. Nothing in this subsection limits the effectiveness of a termination or correction statement filed by a debtor under sections 9509(d)(2) and 9513 (relating to termination statement) or the rights of a debtor under section 9625 (relating to remedies for secured party's failure to comply with division). Cross References. Section 9518 is referred to in section 9516 of this title.