MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Banks and Banking

By: Representative Simpson

AN ACT TO AMEND SECTION 75-9-403, MISSISSIPPI CODE OF 1972, TO REVISE PROVISIONS WITH REGARD TO FINANCING STATEMENTS UNDER THE SECURED TRANSACTIONS PORTION OF THE UNIFORM COMMERCIAL CODE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 75-9-403, Mississippi Code of 1972, is amended as follows:

75-9-403. (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 chapter.

(2) Except as provided in subsection (6), a filed financing statement is effective for a period of five (5) 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. 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 (60) 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. Except as provided in subsection (6), this section shall apply to all filed financing statements, including fixture filings filed in the real estate records where the mortgage on the real estate is filed.

(3) A continuation statement may be filed by the secured party within six (6) 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 Section 75-9-405(2), including payment of the required fee. Upon timely filing of the continuation statement, the effectiveness of the original statement is continued for five (5) 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. Unless a statute on disposition of public records provides otherwise, the filing officer may remove a lapsed statement from the files and destroy it immediately if he has retained a microfilm or other photographic record, or in other cases after one (1) 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 financing statements of a period more than five (5) years past, those 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. 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. Also, for indexing purposes, a continuation statement shall be treated as a financing statement by the filing officer and indexed in the same manner as financing statements.

(5) (a) Except as provided in (b) of this subsection, upon the filing of an original financing statement or a continuation statement, the filing officer will furnish the secured party a copy thereof showing the file number and the date, hour and place of filing. If the statement is in the standard form prescribed by the Secretary of State, the filing fee shall be Five Dollars ($5.00), and otherwise it shall be Ten Dollars ($10.00). The secured party may, at his option, show a trade name for any person. The uniform fee for each name, including trade name, more than one (1) required to be indexed shall be Two Dollars ($2.00).

(b) If an original financing statement or a continuation statement is filed under the provisions of Section 75-9-402(5), the uniform fee for recording and indexing the first page of the statement shall be Five Dollars ($5.00). If the statement consists of more than one (1) page, the recording fee for such excess shall be determined in accordance with Section 25-7-9(1)(f). The secured party may, at his option, show a trade name for any person. The uniform fee for indexing each name, including trade name, more than one (1) shall be Two Dollars ($2.00), and if more than one (1) entry is required to be made in the sectional index, the provisions of Section 25-7-9(1)(f) shall apply to the excess. When the statement has been recorded and indexed, the filing officer will return the statement, or a copy thereof, to the secured party showing the date, hour, book and page number and place of recording.

(6) If the debtor is a transmitting utility (Section 75-9-401(5)) 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 Section 75-9-402(6) 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. A financing statement covering a mobile home, other than a mobile home constituting inventory, remains effective, if it so states, until a termination statement is filed.

(7) When a financing statement covers timber to be cut or covers minerals or the like (including oil and gas) or accounts subject to Section 75-9-103(5) 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.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.