§507D-4 - Contesting validity of recorded instruments; injunctions.
§507D-4 Contesting validity of recorded
instruments; injunctions. (a) Any party in interest in real or personal
property which is subject to a claim of nonconsensual common law lien, who
believes the claim of lien is invalid, may file a petition in the appropriate
circuit court to contest the validity of that purported lien and to enjoin the
lien claimant from making further filings with the registrar. The petition
shall state the grounds upon which relief is requested, and shall be supported
by the affidavit of the petitioner or the petitioner's attorney setting forth a
concise statement of the facts upon which the petition is based. The procedure
for obtaining injunctions and temporary restraining orders shall apply in cases
brought under this section or section 507D-7(b).
(b) A debtor who believes the filing of a
financing statement was unauthorized, may file a request with the registrar to
determine the validity of the filing. Each such request shall identify the
financing statement by document number and the requester shall be assessed a
reasonable processing fee determined by the registrar. Upon the receipt of the
request, the registrar shall send a demand to the secured party by certified or
registered mail, at the address set forth on the financing statement, that the
secured party provide a copy of the security agreement which purportedly
authorized the filing of the financing statement to the registrar no later than
thirty days following the postmarked date of the registrar's notice. If the
registrar does not receive the security agreement within the thirty-day period,
the registrar shall issue to the debtor and accept for filing, a notice of
unauthorized filing of financing statement. The filing of a notice of
unauthorized filing of financing statement shall effectively terminate the
unauthorized financing statement.
(c) Subsections (a) and (b) shall not apply to
any instrument that is recorded by the United States, the State, or any county.
[L 1996, c 24, pt of §1; am L 1997, c 284, §3; am L 2002, c 145, §4]