§ 25-9-516. What constitutes filing; effectiveness of filing. - North Carolina Statutes

§ 25‑9‑516.  Whatconstitutes filing; effectiveness of filing.

(a)        What constitutesfiling. – Except as otherwise provided in subsection (b) of this section,communication of a record to a filing office and tender of the filing fee oracceptance of the record by the filing office constitutes filing.

(b)        Refusal to acceptrecord; filing does not occur. – Filing does not occur with respect to a recordthat a filing office refuses to accept because:

(1)        The record is notcommunicated by a method or medium of communication authorized by the filingoffice;

(2)        An amount equal toor greater than the applicable filing fee is not tendered;

(3)        The filing office isunable to index the record because:

a.         In the case of aninitial financing statement, the record does not provide a name for the debtor;

b.         In the case of anamendment or correction statement, the record:

1.         Does not identifythe initial financing statement as required by G.S. 25‑9‑512 orG.S. 25‑9‑518, as applicable; or

2.         Identifies aninitial financing statement whose effectiveness has lapsed under G.S. 25‑9‑515;

c.         In the case of aninitial financing statement that provides the name of a debtor identified as anindividual or an amendment that provides a name of a debtor identified as anindividual which was not previously provided in the financing statement towhich the record relates, the record does not identify the debtor's last name;or

d.         In the case of arecord filed in the filing office described in G.S. 25‑9‑501(a)(1),the record does not provide a sufficient description of the real property towhich it relates;

(4)        In the case of aninitial financing statement or an amendment that adds a secured party ofrecord, the record does not provide a name and mailing address for the securedparty of record;

(5)        In the case of aninitial financing statement or an amendment that provides a name of a debtorwhich was not previously provided in the financing statement to which theamendment relates, the record does not:

a.         Provide a mailingaddress for the debtor;

b.         Indicate whether thedebtor is an individual or an organization; or

c.         If the financingstatement indicates that the debtor is an organization, provide:

1.         A type oforganization for the debtor;

2.         A jurisdiction oforganization for the debtor; or

3.         An organizationalidentification number for the debtor or indicate that the debtor has none;

(6)        In the case of anassignment reflected in an initial financing statement under G.S. 25‑9‑514(a)or an amendment filed under G.S. 25‑9‑514(b), the record does notprovide a name and mailing address for the assignee;

(7)        In the case of acontinuation statement, the record is not filed within the six‑monthperiod prescribed by G.S. 25‑9‑515(d); or

(8)        In the case of arecord presented for filing at the Department of the Secretary of State, theSecretary of State determines that the record is not created pursuant to thisChapter or is otherwise intended for an improper purpose, such as to hinder,harass, or otherwise wrongfully interfere with any person.

(c)        Rules applicable tosubsection (b). – For purposes of subsection (b) of this section:

(1)        A record does notprovide information if the filing office is unable to read or decipher theinformation; and

(2)        A record that doesnot indicate that it is an amendment or identify an initial financing statementto which it relates, as required by G.S. 25‑9‑512, 25‑9‑514,or 25‑9‑518, is an initial financing statement.

(d)        Refusal to acceptrecord; record effective as filed record. – A record that is communicated tothe filing office with tender of the filing fee, but which the filing officerefuses to accept for a reason other than one set forth in subsection (b) ofthis section, is effective as a filed record except as against a purchaser ofthe collateral which gives value in reasonable reliance upon the absence of therecord from the files. (1866‑7, c. 1, s. 1; 1872‑3, c. 133, s. 1; Code, s. 1799;1893, c. 9; Rev., s. 2052; C.S., s. 2480; 1925, c. 302, s. 1; 1927, c. 22;1935, c. 205; 1945, c. 182, ss. 2, 4; c. 196, s. 2; 1955, c. 386, ss. 1, 2; c.816; 1957, cc. 564, 999; 1961, c. 574; 1965, c. 700, s. 1; 1967, c. 562, s. 1;1969, c. 1115, s. 1; 1971, c. 1170; 1973, c. 1316, s. 1; 1975, c. 862, s. 7;1977, cc. 156, 295; 1983, c. 713, s. 23; 1987, c. 792, s. 6; 1989, c. 523, s.4; 1991, c. 164, s. 1; 1997‑456, s. 55.3; 1997‑475, s. 5.4; 2000‑169,s. 1; 2001‑231, s. 1.)