N.J. Admin. Code § 17:33-5.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:33-5.2 - Reasons for refusal or removal of UCC filings

(a) The following reasons are the sole reasons for refusing to accept a UCC filing. As used in this section, the term "legible" is not limited to refer only to written expressions on paper. Legibility also encompasses electronic and other machine-readable transmissions and the requirement for such transmissions to be readily decipherable by DORES' information management system or staff.

1. Debtor name and address. An initial financing statement or an amendment that purports to add a debtor shall be refused if the filing fails to include a legible debtor name and address for a debtor. If the filing has more than one debtor name or address and some names or addresses are missing or illegible, DORES shall index the legible name and address pairings, and provide a notice to the remitter with the file number of the filing, identification of the debtor name(s) that was (were) indexed, and a statement that debtors with illegible or missing names or addresses were not indexed.

2. Additional debtor identification. An initial financing statement or an amendment adding one or more debtors shall be refused if the filing 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 filing does not include in legible form the organization's type, state of organization, or organization number (or a statement that it does not have one).

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 filing fails to include a legible secured party's (or assignee in the case of an assignment) name and address. If the filing contains more than one secured party's (or assignee) name or address and some names or addresses are missing or illegible, DORES shall refuse the UCC document.

4. Lack of identification of initial financing statement. A UCC filing other than an initial financing statement shall be refused if the filing does not provide a file number of a financing statement in the UCC information management system that has not lapsed.

5. Timeliness of continuation. A continuation shall be refused if it is not received during the six-month period concluding on the day upon which the related financing statement would lapse.

i. 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, six months preceding the month in which the financing statement would lapse. If there is no such corresponding date during the sixth month preceding the month in which the financing statement would lapse, the first day 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, although filing by certain means may not be possible on such date if DORES is not open on such date.

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

6. Fee. A filing shall be refused if it is accompanied by less than the full filing fee and if the filing request is for expedited service, is accompanied by less than the filing fee plus expedited fee.

7. Means of communication. UCC filings communicated to DORES by a means of communication not authorized by DORES for the communication of UCC filings will be refused.

8. Inability to read or decipher information. For purposes of N.J.S.A. 12A:9-516.c, the filing office shall be considered to be unable to read or decipher information in a record, if:

i. The information in a written record is so faint, illegible, or otherwise unintelligible as to be unable to be read, copied, or otherwise processed by the filing office's equipment;

ii. If the filing office authorizes electronic transmission of records, and if the information in an electronically transmitted record is not in a format that can be read, copied, or otherwise processed by the filing office's equipment, or, for any other reason, cannot be read, copied, or otherwise processed by the filing office's equipment; or

iii. The record contains confusing, conflicting, or contradictory matter that gives rise to uncertainty, ambiguity, or lack of clarity as to the information in the record. Examples of such uncertainty, ambiguity, or lack of clarity include, but are not limited to, the following:

(1) If it appears to the filing office that a debtor named in a record is the same person as a secured party, the filing office shall be considered to be unable to decipher, and the record shall be considered not to provide, the name of the debtor or the name of the secured party;

(2) If it appears to the filing office that one portion of a record contains matter that indicates that a debtor is an organization and another portion of the record contains matter that indicates that the same debtor name is an individual, the filing office shall be considered to be unable to decipher, and the record shall be considered not to provide, the name of such debtor or an indication whether the debtor is an individual or an organization;

(3) If all or any part of an address in a record is qualified by words or phrases, such as "near," "about," "approximately," "on or about," or the like, or if all or any part of an address in a record is contained in parenthesis, brackets, quotation marks, or the like, in a context that gives rise to uncertainty, ambiguity, or lack of clarity with respect to such address, the filing office shall be considered to be unable to decipher, and the record shall be considered not to provide, such address;

(4) If the record contains language that would render it meaningless for indexing purposes pursuant to the Uniform Commercial Code;

(5) If the record contains language that describes the collateral that is the subject of the filing in a confusing, unclear, or ambiguous manner; or

(6) If debtor is listed as an individual or an organization and classifies as a "transmitting utility," but the record does not contain any information indicating the debtor's name meets the definition of transmitting utility at N.J.S.A. 12A:9-102(80).

9. The record is not required or authorized to be filed or recorded with the filing office.

10. The record, on its face, is being filed or recorded for a purpose outside the scope of this chapter.

11. The collateral described in the record is not within the scope of this chapter.

12. The filing office reasonably believes that the filer is attempting to file under a fictitious name with the intent to harass or defraud the person identified as the debtor.

13. The filing office reasonably believes that the record is materially false or fraudulent.

(b) In the event that DORES determines that a filing contains confusing, conflicting, or contradictory matter that gives rise to uncertainty, ambiguity, or lack of clarity as to information in the record, or otherwise contains matter that is defective pursuant to (a) above, it may remove the filing from DORES UCC Information Management and Image Storage systems.

N.J. Admin. Code § 17:33-5.2

Amended by 47 N.J.R. 908(a), effective 5/4/2015.

Adopted by 55 N.J.R. 2419(a), effective 12/4/2023