While the purpose of the amendment is to prevent fraudulent filings, a failure to comply, even if there is no fraudulent intent, could result in an ineffective filing, a restraint of collection or enforcement, an alternative disposition of the collateral and in some instances statutory damages, attorneys fees and/or an injunction from filing any future liens, encumbrances or claims against the debtor (or any other persons specified by the court) without court approval. In addition, for some creditors, the filing office can refuse to file a financing statement that does not comply with the new requirements. The amendment is applicable to all financing statements filed on or after May 11, 2015.

If you have filed a financing statement since May 11th or intend to file a financing statement, ensure your filing complies with the strict requirements set forth in the newly enacted amendment. If any financing statement filed on or after May 11th is not in compliance, an amendment should be filed immediately.