{"data":{"id":"us-ky/krs-355.9-513a","jurisdiction":"us-ky","citation":"KRS 355.9-513A","heading":"Termination of wrongfully filed record -- Reinstatement.","body":"(1) No person shall communicate a financing statement to a filing office for filing\nwhich is:\n(a) Not authorized or permitted under KRS 355.9-509 or 355.9-708;\n(b) Not related to a valid existing or potential commercial or financial transaction;\nand\n(c) Filed with the intent to harass, hinder, or defraud a qualified person identified\nas an individual debtor in the financing statement.\n(2) A qualified person may file in the office of the Secretary of State's Office of\nBusiness Services a notarized affidavit, signed under penalty of perjury, stating that:\n(a) The affiant is a qualified person;\n(b) None of the secured parties of record are financial institutions as defined in\nsubsection (15) of this section;\n(c) All secured parties of record are individuals; and\n(d) The financing statement was filed by an individual not authorized or permitted\nto do so under KRS 355.9-509 or 355.9-708.\n(3) (a) The Secretary of State shall adopt and make available a form of affidavit for\nuse under this section.\n(b) The filing office shall not charge a fee for the filing of an affidavit or a\ntermination statement under this section. The filing office shall not return any\nfee paid for filing the financing statement identified in the affidavit, whether\nor not the financing statement is subsequently reinstated.\n(c) In a case in which KRS 355.9 -501 provides that the proper office to file a\nfinancing statement is the office designated for the filing or recording of a\nrecord of a mortgage on real property, the Secretary of State shall promptl y\ntransmit to that office copies of all communications regarding an affidavit\nfiled under this section, including the affidavit itself, any termination\nstatement filed under subsection (4) of this section, and any amendment filed\nor preliminary or final court order received pursuant to subsection (7) or (8) of\nthis section, and upon receipt the receiving office shall execute the actions\ndescribed herein.\n(4) If an affidavit is filed under subsection (2) of t his section, the filing office shall\npromptly file a termination statement with respect to the financing statement\nidentified in the affidavit. The termination statement shall indicate that it was filed\npursuant to this section. Except as provided in subse ctions (7) and (8) of this\nsection, a termination statement filed under this subsection shall take effect thirty\n(30) days after it is filed.\n(5) On the same day that a filing office files a termination statement under subsection\n(4) of this section, it sh all send to each secured party of record for the financing\nstatement a notice advising the secured party of record that the termination\nstatement has been filed. The notice shall be sent by certified mail, return receipt\nrequested, to the address provided for the secured party in the financing statement.\n(6) An individual indicated as a secured party of record on a financing statement for\nwhich a termination statement has been filed under subsection (4) of this section\nmay, before or after the termination statement takes effect:\n(a) Request from the Secretary of State an expedited administrative review of the\ndecision to terminate the filing; or\n(b) Bring an action against the individual who filed the affidavit under subsection\n(2) of this section seeking a determination that the financing statement was\nfiled by a person entitled to do so under KRS 355.9 -509(1). An action under\nthis subsection shall have priority on the court's calendar and shall proceed by\nexpedited hearing. If the individual who filed the affidavit resides in this state,\nthe exclusive venue in this state for the action shall be in the Circuit Court for\nthe county where the individual principally resides in this state. If the\nindividual who filed the affidavit does not reside in this state, t he exclusive\nvenue in this state shall be in the Circuit Court for the county where the filing\noffice in which the financing statement was filed is located.\n(7) In an action brought pursuant to subsection (6) of this section, a court may, in\nappropriate circumstances, order preliminary relief, including but not limited to an\norder precluding the termination statement from taking effect or directing a party to\ntake action to prevent the termination statement from taking effect. If the court\nissues such an or der and the filing office receives a certified copy of the order\nbefore the termination statement takes effect as provided in subsection (4) of this\nsection, the termination statement shall not take effect and the filing office shall\npromptly file an amend ment to the financing statement that indicates that an order\nhas prevented the termination statement from taking effect. If such an order ceases\nto be effective by reason of a subsequent order or a final judgment of that court or\nby an order issued by another court, and the filing office receives a certified copy of\nthe subsequent judgment or order, the termination statement shall become\nimmediately effective upon receipt of the certified copy and the filing office shall\npromptly file an amendment to the fi nancing statement indicating that the\ntermination statement is effective.\n(8) If the Secretary of State determines in an expedited administrative review initiated\nunder subsection (6)(a) of this section, or if a court determines in an action brought\npursuant to subsection (6)(b) of this section, that the financing statement was filed\nby a person entitled to do so under KRS 355.9 -509(1) and the filing office receives\na certified copy of the administrative determination or court's final judgment or\norder before the termination statement takes effect, the termination statement shall\nnot take effect and the filing office shall remove the termination statement and any\namendments filed under subsection (7) of this section from the files. If the filing\noffice recei ves the certified copy after the termination statement takes effect and\nwithin thirty (30) days after the final judgment or order was entered, the filing office\nshall promptly file an amendment to the financing statement that indicates that the\nfinancing statement has been reinstated.\n(9) Except as provided in subsection (10) of this section, upon the filing of an\namendment reinstating a financing statement under subsection (8) of this section,\nthe effectiveness of the financing statement is retroactively r einstated and the\nfinancing statement shall be considered never to have been ineffective against all\npersons and for all purposes.\n(10) A financing statement whose effectiveness was terminated under subsection (4) of\nthis section and has been reinstated un der subsection (8) of this section shall not be\neffective as against a person that purchased the collateral in good faith between the\ntime the termination statement was filed and the time of the filing of the amendment\nreinstating the financing statement, to the extent that the person gave new value in\nreliance on the termination statement.\n(11) (a) A person who violates subsection (1) of this section shall be civilly liable to\nan injured qualified person for:\n1. Actual damages caused by the violation;\n2. Reasonable attorney fees; and\n3. Exemplary damages in an amount determined by the court.\n(b) Civil damages under paragraph (a) of this subsection are in addition to any\nrecovery to which the qualified person is entitled under KRS 355.9 -625, or\nunder law other than this article.\n(12) Neither the filing office nor any of its employees shall be subject to liability for the\ntermination or amendment of a financing statement in the lawful performance of the\nduties of the office under this section.\n(13) A person ma y not file an affidavit under this section with respect to a financing\nstatement filed by a financial institution, as defined in subsection (15) of this section\nor a representative of a financial institution.\n(14) In this section, the term \"qualified perso n\" means an individual who, at the time the\nfinancing statement referred to in subsection (2) of this section was filed or within\nfive (5) years prior to the time of filing, was:\n(a) An elected or appointed official of this state or a governmental unit of this\nstate as defined in KRS 355.9-102(1);\n(b) An officer or employee of a federal, state, or local judicial or prosecutorial\noffice;\n(c) An officer or employee of a federal, state, or local law enforcement office,\nincluding a correctional officer or employee; or\n(d) An officer or employee of an office designated in KRS 355.9-501 as a place to\nfile a financing statement.\n(15) In this section, the term \"financial institution\" means a person that:\n(a) Is in the business of extending credit and servicing loans , including acquiring,\npurchasing, selling, and brokering, or other extensions of credit; and\n(b) Where applicable, holds whatever license, charter, or registration that is\nrequired to engage in such business.\nThe term includes banks, savings banks, savin gs associations, building and loan\nassociations, credit unions, consumer and commercial finance companies, industrial\nbanks, industrial loan companies, insurance companies, investment companies,\ninstallment sellers, mortgage servicers, sales finance compan ies, and leasing\ncompanies.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51442","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"e49e764b53890633d3a79d790ecfb08e26ea55185bd2aa8ea1abf3a0f844d086","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-513","next":"us-ky/krs-355.9-514"},"notice":"GroundRules: Original legal text. Not legal advice."}