This bill amends and reenacts section 46-9-516a of the Code of West Virginia, focusing on the filing of fraudulent financing statements and the investigative powers of the Secretary of State. It introduces new provisions that define various acts constituting fraudulent filings, including the communication of false records with the intent to harass or defraud, the inclusion of material false statements, and groundless filings. The bill establishes civil and criminal penalties for violations, with first offenses classified as misdemeanors and subsequent offenses as felonies. It also allows individuals identified as debtors in fraudulent records to file affidavits with the Secretary of State, who is required to provide a form for this purpose.

Additionally, the bill outlines the process for notifying secured parties of the intent to file an affidavit and sets forth the Secretary of State's authority to reject incomplete affidavits. It grants the Secretary of State investigative powers, including the ability to administer oaths, issue subpoenas, and request additional documentation related to potentially fraudulent filings. The bill also clarifies that neither the filing office nor its employees will incur liability for actions taken in the lawful performance of their duties. Overall, the legislation aims to modernize the handling of fraudulent financing statements and enhance the accountability of the filing process.

Statutes affected:
Introduced Version: 46-9-516a