Illinois General Assembly - Bill Status for HB5190

Amends the Secured Transactions Article of the Uniform Commercial Code. Provides that a person may not cause to be presented for filing a financing statement or amendment that the person knows or reasonably should know: is not related to a valid lien, a valid security agreement, or a judgment of a court of competent jurisdiction; is for an improper purpose or purposes, such as to harass, hinder, defraud, or otherwise interfere with any person; or contains materially false or misleading information. Imposes criminal penalties for violations and civil liability to injured persons. Requires the Secretary of State to make available a form affidavit to provide notice of a fraudulent financing statement or amendment. Contains provisions regarding: filing a fraudulent filing affidavit; additional documentation supporting a filing; review of documentation; termination of a financing statement or amendment; fees; notice; reinstatement; liability; effectiveness; and other matters. Effective immediately.

Replaces everything after the enacting clause. Amends the Secured Transactions Article of the Uniform Commercial Code. Provides that a person may not cause to be communicated to a filing office for filing a false record the person knows or reasonably should know: is not authorized or permitted under specified provisions; is not related to a valid existing or potential commercial or financial transaction, an existing agricultural or other lien, or a judgment of a court of competent jurisdiction; and is filed with the intent to harass or defraud the person identified as debtor in the record or any other person. Provides that violators are subject to criminal penalties and civil damages. Provides that a person identified as debtor in a filed record the person believes was caused to be communicated to the filing office in violation of the new provisions may file with the Secretary of State an affidavit to that effect and the Secretary of State shall adopt and make available a form affidavit. Contains provisions regarding: administrative action; review of documentation by the Secretary of State; termination, reinstatement, and acceptance of filed records; fees; notice; refiling; liability; effectiveness; certain types of transactions; and other matters. Effective immediately.

×