HF4042 Summary

• Amends Minnesota Statutes sections 336.9-510 and 336.9-516 to allow the filing office to refuse records reasonably believed to be filed with intent to harass or defraud, with no duty to investigate the filer's intent.

• Creates new statute 336.9-5135 allowing persons named as debtors in wrongfully filed financing statements to submit notarized affidavits to terminate the filing, with the filing office issuing a termination statement effective 20 days after filing.

• Permits secured parties to request expedited review of contested terminations or commence legal action for reinstatement within six months, with courts able to order reinstatement if the filing was authorized.

• Establishes criminal liability under new statute 609.7476, making it a gross misdemeanor for a first offense and felony for subsequent offenses to file unauthorized records with intent to harass or defraud.

• Allows debtors and the filing office to recover costs and attorney fees from parties that file unauthorized fraudulent records.