Section 355.9-516A - Administrative rejection of unauthorized records(1) Upon approval of the Secretary of State, a filing office may refuse to accept a record communicated for filing under this article if it is evident from the contents of the record, including the described collateral, or from information in a record accompanying the record communicated for filing, that the person filing the record is not authorized to do so under KRS 355.9-509 or 355.9-708. This section only applies if all debtors and secured parties indicated on the record are individuals.(2) If a filing office refuses to accept a record pursuant to subsection (1) of this section, it shall immediately inform the person attempting to file the record and all persons identified on the record as secured parties that the record has not been accepted, and may request additional documentation supporting the filing. The Secretary of State shall review all documentation received pursuant to a request under this subsection, and if the Secretary of State concludes that the record is authorized under KRS 355.9-509 or 355.9-708, the Secretary of State shall direct the filing office to promptly accept the record.(3) A person indicated as a secured party of record on a financing statement that is refused pursuant to subsection (1) of this section may request from the Secretary of State an expedited administrative review of the decision to refuse filing.(4) A person indicated as a secured party of record on a financing statement that is refused filing pursuant to subsection (1) of this section may bring an action against the Secretary of State seeking a determination that the financing statement was filed by a person entitled to do so under KRS 355.9-509(1) and was authorized. An action under this subsection shall have priority on the court's calendar and shall proceed by expedited hearing. If the individual who filed the affidavit resides in this state, the exclusive venue in this state for the action shall be in the Circuit Court for the county where the individual principally resides in this state. If the individual who filed the affidavit does not reside in this state, the exclusive venue in this state shall be in the Circuit Court for the county where the filing office in which the financing statement was filed is located.(5) If the Secretary of State determines in an expedited administrative review initiated under subsection (3) of this section, or if a court determines in an action brought pursuant to subsection (4) of this section, that a rejected record was filed by a person entitled to do so under KRS 355.9-509(1) and should have been accepted for filing, upon receipt of a certified copy of that determination the filing office shall promptly file the record. Upon the filing of a record improperly refused under subsection (1) of this section, the record shall be treated as if it had been filed and effective as of the date originally submitted, except against a person that purchased the collateral in good faith between the date the record was rejected for filing and the subsequent actual date of the filing, to the extent that the person gave new value in reliance on the absence of the record from the files.Added by 2012 Ky. Acts ch. 132,§ 85, eff. 7/11/2012.