§ 25-9-518. Claim concerning inaccurate or wrongfully filed record. - North Carolina Statutes

§ 25‑9‑518.  Claimconcerning inaccurate or wrongfully filed record.

(a)        Correctionstatement. – A person may file in the filing office a correction statement withrespect to a record indexed there under the person's name if the personbelieves that the record is inaccurate or was wrongfully filed.

(b)        Sufficiency ofcorrection statement. – A correction statement must:

(1)        Identify the recordto which it relates by the file number assigned to the initial financingstatement to which the record relates;

(2)        Indicate that it isa correction statement; and

(3)        Provide the basisfor the person's belief that the record is inaccurate and indicate the mannerin which the person believes the record should be amended to cure anyinaccuracy or provide the basis for the person's belief that the record waswrongfully filed. A correction statement that is subject to the provisions ofsubsection (b1) of this section shall include a written certification, underoath, by the person that the contents of the correction statement are true andaccurate to the best of the person's knowledge.

(b1)      In the case of acorrection statement alleging that a previously filed record was wrongfullyfiled and that it should have been rejected under G.S. 25‑9‑516(b)(8),the Secretary of State shall, without undue delay, determine whether thecontested record was wrongfully filed and should have been rejected. In orderto determine whether the record was wrongfully filed, the Secretary of Statemay require the person filing the correction statement and the secured party toprovide any additional relevant information requested by the Secretary ofState, including an original or a copy of any security agreement that isrelated to the record. If the Secretary of State finds that the record was wrongfullyfiled and should have been rejected under G.S. 25‑9‑516(b)(8), theSecretary of State shall cancel the record and it shall be void and of noeffect.

(c)        Record not affectedby correction statement. – The filing of a correction statement does not affectthe effectiveness of an initial financing statement or other filed record. (2000‑169, s. 1; 2001‑231,ss. 2, 3.)