Current through Register Vol. 47, No. 5, March 10, 2024
2.1
Role of the filing office. The duties and responsibilities of the Secretary of
State with respect to the administration of the UCC, the EFS Act, and the Lien
Registration Act are ministerial. In accepting for filing or refusing to file a
secured transaction record in accordance with these rules, the Secretary of
State will not:
2.1.1 Determine the legal
sufficiency or insufficiency of a record;
2.1.2 Determine whether a security interest
in collateral exists;
2.1.3
Determine that information in the record is correct or incorrect, in whole or
in part; or
2.1.4 Create a
presumption that information in the record is correct or incorrect, in whole or
in part.
2.2 Duty to
file. A record that does not have a ground for refusal is filed upon receipt by
the Secretary of State with the applicable filing fee. The Secretary of State
will assign a file number to the secured transaction record upon receipt and
promptly index the record in the secured transactions information management
system.
2.3 Grounds for refusal of
a UCC record. In accordance with section
4-9-516(b),
C.R.S., the Secretary of State will refuse to file a UCC record for the
following reasons:
2.3.1 Some or all of the
information provided in the UCC record is illegible. Legibility is not limited
to written expressions on paper. A filer must submit a legible record in the
form, format, and medium required by the Secretary of State.
2.3.2 Lack of identification of initial
financing statement. The Secretary of State will refuse an amendment or
information statement if the record does not provide:
(a) A file number of a financing statement in
the secured transactions information management system that has not
lapsed;
(b) The date that the
initial financing statement was filed; and
(c) For an amendment to an initial financing
statement filed on or before December 31, 1999, an indication of the filing
office in which the initial financing statement was filed.
2.3.3 Timeliness of continuation. The
Secretary of State will refuse a continuation statement if it is received more
than six months before the financing statement's lapse date or if it is
received after the financing statement's lapse date. The Secretary of State
will accept a continuation statement filing as follows:
(a) First day permitted. The first day on
which a continuation statement may be filed is the day of the sixth month
preceding the month in which the financing statement would lapse that
corresponds to the day of the month on which the financing statement would
lapse. If there is no such corresponding date, the first day on which a
continuation statement may be filed is the last day of the sixth month
preceding the month in which the financing statement would lapse. Filing may
not be possible on any date that the electronic filing application is
unavailable, such as during regular system maintenance periods.
(b) Last day permitted. The last day on which
a continuation statement may be filed is the date on which the financing
statement lapses, although filing may not be possible on any date that the
electronic filing application is unavailable, such as during regular system
maintenance periods.
(c) Means of
communication. The Secretary of State will only accept UCC records communicated
by an authorized means in accordance with Rule 1.2.
2.3.4 Indecipherable. The Secretary of State
will refuse an indecipherable UCC record that cannot be indexed. An
indecipherable record may include, but is not limited to, a record that
contains a special character outside of the character set provided in Rule 3.14
, or an amendment that fails to indicate the type of amendment.
2.3.5 The Secretary of State will provide a
notice to the filer indicating the missing, indecipherable, or invalid
information, and that the filer must provide the missing information in order
to file the record.
2.4
Grounds for refusal of an EFS record. The Secretary of State will refuse to
accept an EFS or EFS amendment only for those reasons found in the UCC and in
Rule 2.3.
2.5 Grounds for refusal
of a notice of lien or notice of amendment. In addition to the reasons set
forth in section
4-9.7-105, C.R.S., the Secretary of
State will refuse to accept a notice of lien or notice of amendment for the
following reasons:
2.5.1 Fee. The Secretary
of State will refuse a notice of lien or notice of amendment if the record is
submitted with less than the full filing fee and the fee is not tendered by a
method authorized in Rule 1.8.
2.5.2 Means of communication. The Secretary
of State will refuse a notice of lien or notice of amendment communicated to
the Secretary of State by a means of communication not authorized in Rule
1.2.
2.5.3 Indecipherable. The
Secretary of State will refuse a notice of lien or notice of amendment that is
indecipherable and cannot be indexed. An indecipherable record may include, but
is not limited to, a record that contains a special character outside of the
character set provide in Rule 3.14 , or a notice of amendment that fails to
indicate the type of amendment.
2.6 Grounds for refusal of a record submitted
via the system-to-system transfer method. The sole grounds for the Secretary of
State's refusal to accept a secured transaction record for filing submitted via
the system-to-system transfer method are enumerated in Rules 2.3 and
2.4.
2.7 Procedure upon refusal.
During the submission process, the electronic filing application will indicate
any deficiencies and will prompt the filer to provide all required information
necessary to complete filing. The system will not accept a filing until all
required information is provided.
2.8 Acknowledgment.
2.8.1 When a filer completes the electronic
filing application, the system will display an image of the secured transaction
record including the record information, file number, and the filing date and
time.
2.8.2 When a filer completes
a system-to-system transfer, the system will display the record information,
file number, and the filing date and time.
2.9 Refusal errors. If a filer demonstrates
to the satisfaction of the Secretary of State that a record was refused in
error, the Secretary of State will file the record as of the filing date and
time when the record was originally communicated for filing with a statement
that the record was refused in error. The statement will be preserved for so
long as the master record is preserved in the secured transactions information
management system.
