30 KAR 5:030. Acceptance and refusal of records.

      RELATES TO: KRS 355.9-515, 355.9-516, 355.9-520

      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 Article 9 of KRS Chapter 355. This administrative regulation establishes the requirements relating to the acceptance and refusal of records.

      Section 1. Role of Filing Officer. The duties and responsibilities of the filing officer with respect to the administration of the UCC shall be ministerial. In accepting for filing or refusing to file a UCC record pursuant to the UCC and 30 KAR Chapter 5, the filing officer shall not:

      (1) Determine the legal sufficiency or insufficiency of a record;

      (2) Determine that a security interest in collateral exists or does not exist;

      (3) Determine that information in the record is correct or incorrect, in whole or in part; or

      (4) Create a presumption that information in the record is correct or incorrect, in whole or in part.

      Section 2. Timeliness of Continuation. The first day on which a continuation may be filed shall be the date corresponding to the date upon which the financing statement would lapse, six (6) months preceding the month in which the financing statement would lapse. If there is no corresponding date, the first date on which a continuation may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse. The last day on which a continuation may be filed is the date upon which the financing statement lapses.

      Section 3. Grounds for Refusal. The filing officer shall refuse a UCC record for the reasons specified in KRS 355.9-516. In accordance with KRS 355.9-516(2)(a), the filing officer shall refuse a UCC record if:

      (1) The record contains more than one (1) secured party or assignee name or address and some names or addresses are missing or illegible; or

      (2) No address is given in the address field. An address shall include street address, city, state and postal code.

      Section 4. Procedure Upon Refusal. Except as provided in 30 KAR 5:020, Section 5(2)(b), if the filing officer finds grounds to refuse a UCC record, the filing officer shall return the record or a copy of the record in accordance with KRS 355.9-520(2).

      Section 5. Notification of Defects. (1) A filing officer may communicate to a filer or remitter that the filing officer noticed apparent potential defects in a UCC record, whether or not it was filed or refused for filing.

      (2) The filer or remitter shall be responsible for the legal effectiveness of a filing. The filing office shall not bear responsibility for the effectiveness of records.

      Section 6. Refusal Errors. 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, the filing officer shall file the UCC record with the filing date and time assigned when the filing occurs. The filing officer shall file a filing officer statement that states the effective date and time of filing which shall be the date and time the UCC record was originally tendered for filing. (28 Ky.R. 997; Am. 1345; eff. 12-19-2001.)