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ENGROSSED
SENATE BILL 5163
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Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 01/17/97.
Referred to Committee on Law & Justice.
Filing financing
statements.
AN
ACT Relating to the expiration of filed financing statements; and amending RCW
62A.9-403.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
62A.9-403 and 1987 c 189 s 2 are each amended to read as follows:
(1)
Presentation for filing of a financing statement and tender of the filing fee
or acceptance of the statement by the filing officer constitutes filing under
this Article.
(2)
Except as provided in subsection (6) a filed financing statement is effective
for a period of five years from the date of filing. The effectiveness of a
filed financing statement lapses on the expiration of the five year period
unless a continuation statement is filed prior to the lapse. Immediately
following a date which is four and one-half years after filing, the director of
licensing must provide notice of the five-year expiration period and the
availability and effect of using a continuation statement. Failure to provide
this notice does not give rise to a cause of action against the state or its
officers or employees. If a security interest perfected by filing exists
at the time insolvency proceedings are commenced by or against the debtor, the
security interest remains perfected until termination of the insolvency proceedings
and thereafter for a period of sixty days or until expiration of the five year
period, whichever occurs later. Upon lapse the security interest becomes
unperfected, unless it is perfected without filing. If the security interest
becomes unperfected upon lapse, it is deemed to have been unperfected as
against a person who became a purchaser or lien creditor before lapse.
(3)
A continuation statement may be filed by the secured party within six months
prior to the expiration of the five year period specified in subsection (2).
Any such continuation statement must be signed by the secured party, identify
the original statement by file number and state that the original statement is
still effective. A continuation statement signed by a person other than the
secured party of record must be accompanied by a separate written statement of
assignment signed by the secured party of record and complying with subsection
(2) of RCW 62A.9-405, including payment of the required fee. Upon timely
filing of the continuation statement, the effectiveness of the original
statement is continued for five years after the last date to which the filing
was effective whereupon it lapses in the same manner as provided in subsection
(2) unless another continuation statement is filed prior to such lapse.
Succeeding continuation statements may be filed in the same manner to continue
the effectiveness of the original statement. The filing officer may remove the
original of any statement from the files and destroy it at any time if he has
substituted a copy by microfilm or other photographic record. The filing
officer may destroy any original, microfilm, or photographic record of any
lapsed statement not earlier than one year after the lapse. The filing officer
shall so arrange matters by physical annexation of financing statements to
continuation statements or other related filings, or by other means, that if he
physically destroys the original of the financing statements, a microfilm or
other photographic copy of those statements which have been continued by a
continuation statement or which are still effective under subsection (6) shall
be retained.
(4)
Except as provided in subsection (7) a filing officer shall mark each statement
with a file number and with the date and hour of filing and shall hold the
statement or a microfilm or other photographic copy thereof for public
inspection. The original statement may be destroyed at any time after a
microfilm or other photographic copy is made of the original statement. This
microfilm or other photographic copy shall thereafter be treated as if it were
the original filing for all purposes. In addition the filing officer shall
index the statements according to the name of the debtor and shall note in the
index the file number and the address of the debtor given in the statement.
(5)
The secured party may at his option show a trade name for any person.
(6)
If the debtor is a transmitting utility (subsection (5) of RCW 62A.9-401) and a
filed financing statement so states, it is effective until a termination
statement is filed. A real estate mortgage which is effective as a fixture
filing under subsection (6) of RCW 62A.9-402 remains effective as a fixture
filing until the mortgage is released or satisfied of record or its effectiveness
otherwise terminates as to the real estate.
(7) When a financing statement covers timber to be cut or covers
minerals or the like (including oil and gas) or accounts subject to subsection
(5) of RCW 62A.9-103, or is filed as a fixture filing, it shall be filed for
record and the filing officer shall index it under the names of the debtor and
any owner of record shown on the financing statement in the same fashion as if
they were the mortgagors in a mortgage of the real estate described, and, to the
extent that the law of this state provides for indexing of mortgages under the
name of the mortgagee, under the name of the secured party as if he were the
mortgagee thereunder, or where indexing is by description in the same fashion
as if the financing statement were a mortgage of the real estate described.
