The Nebraska legislature has adopted a bill that will, among other things, create an offence for fraudulently filing a financial statement, lien or document. The bill, LB 3, was introduced by Sen. Bob Krist of Omaha.
Under the new law, a person commits the offense of fraudulently filing a financial statement, lien or document if the person directly, or through an intermediary, submits for filing or recording in the public record:
- Any document purporting to create a nonconsensual common-law lien, as defined in section 52-1901, knowing or having reason to know that the lien is a nonconsensual common-law lien;
- A financing statement pursuant to article 9, Uniform Commercial Code, knowing or having reason to know that the financing statement is not based on a bona fide security agreement or was not authorized or authenticated by the alleged debtor identified in the financing statement or an authorized representative of the alleged debtor; or
- Any document filed in an attempt to harass an entity, individual or public official or obstruct a government operation or judicial proceeding, knowing or having reason to know such document contained false information.
Fraudulently filing a financing statement, lien or document is now considered a class IV felony.
The new law goes on to state that a nonconsensual common-law lien is not binding or enforceable at law or in equity. Any nonconsensual common-law lien that is recorded is void and unenforceable.
In order that the owner of real property upon which a nonconsensual common-law lien is recorded shall have notice of the recording of the lien, the claimant must cause the sheriff to serve a copy of the recorded lien upon the owner of the property. The sheriff must make return thereof without delay by filing proof of service with the register of deeds. There will be no filing fee for filing the proof of service. A judicial proceeding to enforce a nonconsensual common-law lien will be instituted by the claimant within 10 days after recording the lien. Failure to serve a copy of the recorded lien or failure to file a judicial proceeding to enforce the lien will cause the lien to lapse and be of no legal effect.