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2006 Minnesota Statutes

This is a historical version of this statute section. Also view the most recent published version.

604.17 CIVIL LIABILITY FOR FRAUDULENT OR OTHERWISE IMPROPER
FINANCING STATEMENTS.
    Subdivision 1. Definitions. For purposes of this section:
    (1) "financing statement" has the meaning given in section 336.9-102(a) of the Uniform
Commercial Code; and
    (2) "filing officer" is defined as Uniform Commercial Code filing officer in each jurisdiction.
    Subd. 2. Liability. (a) A person shall not knowingly cause to be presented for filing or
promote the filing of a financing statement that the person knows:
    (1) is forged;
    (2) is not:
    (i) related to a valid lien or security agreement; or
    (ii) filed pursuant to section 336.9-502(d); and
    (3) is for an improper purpose or purposes, such as to harass, hinder, defraud, or otherwise
interfere with any person.
    (b) A person who violates paragraph (a) is liable to each injured person for:
    (1) the greater of:
    (i) nominal damages up to $10,000; or
    (ii) the actual damages caused by the violation;
    (2) court costs;
    (3) reasonable attorney fees;
    (4) related expenses of bringing the action, including investigative expenses; and
    (5) exemplary damages in the amount determined by the court.
    Subd. 3. Cause of action. (a) The following persons may bring an action to enjoin violation
of this section or to recover damages under this section:
    (1) the obligor, the person named as the debtor, any person who owns an interest in the
collateral described or indicated in the financing statement, or any person harmed by the filing
of the financing statement;
    (2) the attorney general;
    (3) a county attorney;
    (4) a city attorney; and
    (5) a person who has been damaged as a result of an action taken in reliance on the filed
financing statement.
    (b) A filing officer may refer a matter to the attorney general or other appropriate person
for filing the legal actions under this section.
    Subd. 4. Venue. An action under this section may be brought in any district court in the
county in which the financing statement is presented for filing or in a county where any of the
persons named in subdivision 3, paragraph (a), clause (1), resides.
    Subd. 5. Filing fee. (a) The fee for filing an action under this chapter is $....... The plaintiff
must pay the fee to the clerk of the court in which the action is filed. Except as provided by
paragraph (b), the plaintiff may not be assessed any other fee, cost, charge, or expense by the
clerk of the court or other public official in connection with the action.
    (b) The fee for service of notice of an action under this section charged to the plaintiff
may not exceed:
    (1) $....... if the notice is delivered in person; or
    (2) the cost of postage if the service is by registered or certified mail.
    (c) A plaintiff who is unable to pay the filing fee and fee for service of notice may file with
the court an affidavit of inability to pay under the Minnesota Rules of Civil Procedure.
    (d) If the fee imposed under paragraph (a) is less than the filing fee the court imposes for
filing other similar actions and the plaintiff prevails in the action, the court may order a defendant
to pay to the court the differences between the fee paid under paragraph (a) and the filing fee the
court imposes for filing other similar actions.
    Subd. 6. Other remedies. (a) An obligor, person named as a debtor, owner of collateral,
or any other person harmed by the filing of a financing statement in violation of subdivision 2,
paragraph (a), also may request specific relief, including, but not limited to, terminating the
financing statement and removing the debtor named in the financing statement from the index
under the provisions of section 545.05, paragraph (c), such that it will not appear in a search
under that debtor name.
    (b) This law is cumulative of other law under which a person may obtain judicial relief
with respect to any filed or recorded document.
History: 2006 c 260 art 7 s 12

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