This bill aims to amend and reenact section 46-9-516a of the Code of West Virginia, focusing on the filing of fraudulent financing statements. It introduces new provisions that define additional acts constituting fraudulent filings, including the filing of records containing material false statements or groundless claims. 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.

Furthermore, the bill enhances the investigative powers of the Secretary of State, allowing for the administration of oaths, issuance of subpoenas, and collaboration with the Attorney General for legal assistance. It mandates that individuals filing affidavits must notify secured parties of record and outlines the process for the Secretary of State to reject incomplete affidavits. The bill also clarifies the liability of the filing office and its employees regarding the termination or rejection of records, while excluding records communicated by regulated financial institutions from certain provisions. Overall, the legislation seeks to modernize the handling of fraudulent financing statements and improve the mechanisms for addressing such issues.

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