N.Y. Uniform Commercial Code Law § 9-518: Claim Concerning Inaccurate or Wrongfully Filed Record

Section 9--518. Claim Concerning Inaccurate or Wrongfully Filed Record.

(a) Correction statement. A person may file in the filing office a

correction statement with respect to a record indexed there under the

person's name if the person believes that the record is inaccurate or

was wrongfully filed.

(b) Sufficiency of correction statement. A correction statement must:

(1) identify the record to which it relates by:

(A) the file number assigned to the initial financing

statement to which the record relates; and

(B) if the correction statement relates to a record filed in

a filing office described in Section 9--501(a)(1), the

date and time that the initial financing statement was

filed and the information specified in Section 9--502(b);

(2) indicate that it is a correction statement; and

(3) provide the basis for the person's belief that the record is

inaccurate and indicate the manner in which the person

believes the record should be amended to cure any inaccuracy

or provide the basis for the person's belief that the record

was wrongfully filed.

(c) Record not affected by correction statement. The filing of a

correction statement does not affect the effectiveness of an initial

financing statement or other filed record.

(d) Special proceeding to redact or expunge a falsely filed or amended

financing statement. (1) Provided he or she is an employee of the state

or a political subdivision thereof, a person identified as a debtor in a

financing statement filed pursuant to this subpart may bring a special

proceeding against the named filer of such statement or any amendment

thereof to invalidate the filing or amendment thereof where such

statement was falsely filed or amended; except that an attorney who is

not an employee of the state or a political subdivision thereof may also

bring a special proceeding hereunder where he or she represents or has

represented the respondent therein in a criminal court. Such special

proceeding shall be governed by article four of the civil practice law

and rules, and shall be commenced in the supreme court of Albany county,

the county of the petitioner's residence or a county within the judicial

district in which any property covered by the financing statement is

located. No fee pursuant to article eighty of the civil practice law and

rules shall be collected in such special proceeding.

(2) The petition in a special proceeding hereunder shall plead that:

(A) the financing statement filed or amended by the respondent

pursuant to section 9--509 was falsely filed or amended to retaliate

for: (i) the performance of the petitioner's official duties in his or

her capacity as an employee of the state or a political subdivision

thereof, or (ii) in the case of a special proceeding brought by an

attorney who is not an employee of the state or a political subdivision

thereof, to retaliate for the performance of the petitioner's duties in

his or her capacity as an attorney for the respondent in a criminal

court; and

(B) such financing statement does not relate to an interest in a

consumer-goods transaction, a commercial transaction, or any other

actual transaction between the petitioner and the respondent; and

(C) the collateral covered in such financing statement is the property

of the petitioner; and

(D) prompt redaction or invalidation of the financing statement is

necessary to avert or mitigate prejudice to the petitioner.

(3) If the court makes a written finding that the allegations in

paragraph two of this subsection are established, the court shall order

the expungement of such statement or its redaction in the public records

in the office in which the financing statement is filed, as appropriate,

and may grant any additional relief authorized by section 9--625. In

such case, the court shall cause a copy of its order to be filed with

the secretary of state or other appropriate filing office pursuant to

this chapter. Upon a finding that the respondent has engaged in a

repeated pattern of false filings as found under this subsection, the

court also may enjoin the respondent from filing or amending any further

financing statement pursuant to this article without leave of the court.

If the respondent is incarcerated at the time the court issues an order

containing such an injunction, the court shall cause the head of the

correctional facility in which the respondent is incarcerated to receive

a copy of such determination. The head of such a facility shall cause a

copy of such order to be provided to the respondent. In any instances of

the issuance of such an injunction where the respondent has defaulted,

the court shall direct service of such injunction upon the respondent.