LD 2245
pg. 341
Page 340 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 342 of 493
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LR 1087
Item 1

 
Subsection (d) [Maine cite subsection (4)] deals with the
filing office's unjustified refusal to accept a record. Here,
the filer is in no position to prevent the rejection and as a
general matter should not be prejudiced by it. Although
wrongfully rejected records generally are effective, subsection
(d) [Maine cite subsection (4)] contains a special rule to
protect a third-party purchaser of the collateral (e.g., a buyer
or competing secured party) who gives value in reliance upon the
apparent absence of the record from the files. As against a
person who searches the public record and reasonably relies on
what the public record shows, subsection (d) [Maine cite
subsection (4)] imposes upon the filer the risk that a record
failed to make its way into the filing system because of the
filing office's wrongful rejection of it. (Compare Section 9-517
[Maine cite subsection 9-1517], under which a mis-indexed
financing statement is fully effective.) This risk is likely to
be small, particularly when a record is presented electronically,
and the filer can guard against this risk by conducting a post-
filing search of the records. Moreover, Section 9-520(b) [Maine
cite section 9-1520, subsection (2)] requires the filing office
to give prompt notice of its refusal to accept a record for
filing.

 
4. Method or Medium of Communication. Rejection pursuant to
subsection (b)(1) [Maine cite subsection (2), paragraph (a)] for
failure to communicate a record properly should be understood to
mean noncompliance with procedures relating to security,
authentication, or other communication-related requirements that
the filing office may impose. Subsection (b)(1) [Maine cite
subsection (2), paragraph (a)] does not authorize a filing office
to impose additional substantive requirements. See Section 9-520
[Maine cite section 9-1520], Comment 2.

 
5. Address for Secured Party of Record. Under subsection
(b)(4) [Maine cite subsection (2), paragraph (d)] and Section 9-
520(a) [Maine cite section 9-1520, subsection (1)], the lack of a
mailing address for the secured party of record requires the
filing office to reject an initial financing statement. The
failure to include an address for the secured party of record no
longer renders a financing statement ineffective. See Section 9-
502(a) [Maine cite section 9-1502, subsection (1)]. The function
of the address is not to identify the secured party of record but
rather to provide an address to which others can send required
notifications, e.g., of a purchase-money security interest in
inventory or of the disposition of collateral. Inasmuch as the
address shown on a filed financing statement is an "address that
is reasonable under the circumstances," a person required to send
a notification to the secured party may satisfy the requirement
by sending a notification to that address, even if the address is
or becomes incorrect. See Section 9-102 [Maine


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