CHAPTER 9

FORMERLY

HOUSE BILL NO. 16

AN ACT TO AMEND TITLES 8 & 9 OF THE DELAWARE CODE RELATING TO THE GENERAL CORPORATION LAW AND TO RECORDERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Section 103(c)(1), Title 8, Delaware Code, by deleting the word “original”.

Section 2. Amend Section 103(c)(2), Title 8, Delaware Code, by inserting the word “and” at the end of such subsection.

Section 3. Amend Section 103(c)(3), Title 8, Delaware Code, by deleting the existing text in its entirety and substituting in lieu thereof the following:

“(3) Upon delivery of the instrument, the Secretary of State shall record the date and time of its delivery. Upon such delivery and tender of the required taxes and fees, the Secretary of State shall certify that the instrument has been filed in the Secretary of State's office by endorsing upon the signed instrument the word ‘Filed,’ and the date and time of its filing. This endorsement is the ‘filing date’ of the instrument, and is conclusive of the date and time of its filing in the absence of actual fraud. The Secretary of State shall file and index the endorsed instrument. Except as provided in paragraph (4) of this subsection and in subsection (i) of this Section , such filing date of an instrument shall be the date and time of delivery of the instrument.”.

Section 4. Amend Section 103(c), Title 8, Delaware Code, by deleting paragraph “(6)” in its entirety, by renumbering paragraphs “(4)” and “(5)” to become paragraphs “(5)” and “(6)”, and by adding new paragraph “(4)” as follows:

“(4) Upon request made upon or prior to delivery, the Secretary of State may, to the extent deemed practicable, establish as the filing date of an instrument a date and time after its delivery. If the Secretary of State refuses to file any instrument due to an error, omission or other imperfection, the Secretary of State may hold such instrument in suspension, and in such event, upon delivery of a replacement instrument in proper form for filing and tender of the required taxes and fees within five business days after notice of such suspension is given to the filer, the Secretary of State shall establish as the filing date of such instrument the date and time that would have been the filing date of the rejected instrument had it been accepted for filing. The Secretary of State shall not issue a certificate of good standing with respect to any corporation with an instrument held in suspension pursuant to this subsection. The Secretary of State may establish as the filing date of an instrument the date and time at which information from such instrument is entered pursuant to Subsection (c)(7) of this Section if such instrument is delivered on the same date and within four hours after such information is entered.”.

Section 5. Amend newly renumbered Section 103(c)(5), Title 8, Delaware Code, by deleting the words “paragraph (c)(5)” and substituting in lieu thereof the words “paragraph (c)(6)”.

Section 6. Amend Section 103(c), Title 8, Delaware Code, by inserting a new paragraph “(7)” at the end thereof, which new paragraph “(7)” shall read as follows:

“(7) The Secretary of State shall cause to be entered such information from each instrument as the Secretary of State deems appropriate into the Delaware Corporation Information System or any system which is a successor thereto in the office of the Secretary of State, and such information and a copy of each such instrument shall be permanently maintained as a public record on a suitable medium. The Secretary of State is authorized to grant direct access to such system to registered agents subject to the execution of an operating agreement between the Secretary of State and such registered agent. Any registered agent granted such access shall demonstrate the existence of policies to ensure that information entered into the system accurately reflects the content of instruments in the possession of the registered agent at the time of entry.”.

Section 7. Amend Section 103, Title 8, Delaware Code, by inserting a new subsection “(i)” at the end thereof, which new subsection “(i)” shall read as follows:

“(i) If:

(A) together with the actual delivery of an instrument and tender of the required taxes and fees, there is delivered to the Secretary of State a separate affidavit (which in its heading shall be designated as an affidavit of extraordinary condition) attesting, on the basis of personal knowledge of the affiant or a reliable source of knowledge identified in the affidavit, that an earlier effort to deliver such instrument and tender such taxes and fees was made in good faith, specifying the nature, date and time of such good faith effort and requesting that the Secretary of State establish such date and time as the filing date of such instrument; or

(B) upon the actual delivery of an instrument and tender of the required taxes and fees, the Secretary of State in his or her discretion provides a written waiver of the requirement for such an affidavit stating that it appears to the Secretary of State that an earlier effort to deliver such instrument and tender such taxes and fees was made in good faith and specifying the date and time of such effort; and

(C) the Secretary of State determines that an extraordinary condition existed at such date and time, that such earlier effort was unsuccessful as a result of the existence of such extraordinary condition, and that such actual delivery and tender were made within a reasonable period (not to exceed two business days) after the cessation of such extraordinary condition, then the Secretary of State may establish such date and time as the filing date of such instrument. No fee shall be paid to the Secretary of State for receiving an affidavit of extraordinary condition. For purposes of this subsection, an extraordinary condition means: any emergency resulting from an attack on, invasion or occupation by foreign military forces of, or disaster, catastrophe, war or other armed conflict, revolution or insurrection, or rioting or civil commotion in, the United States or a locality in which the Secretary of State conducts its business or in which the good faith effort to deliver the instrument and tender the required taxes and fees is made, or the immediate threat of any of the foregoing; or any malfunction or outage of the electrical or telephone service to the Secretary of State’s office, or weather or other condition in or about a locality in which the Secretary of State conducts its business, as a result of which the Secretary of State’s office is not open for the purpose of the filing of instruments under this Chapter or such filing cannot be effected without extraordinary effort. The Secretary of State may require such proof as it deems necessary to make the determination required under clause (C) of this subsection, and any such determination shall be conclusive in the absence of actual fraud. If the Secretary of State establishes the filing date of an instrument pursuant to this subsection, the date and time of delivery of the affidavit of extraordinary condition or the date and time of the Secretary of State’s written waiver of such affidavit shall be endorsed on such affidavit or waiver and such affidavit or waiver, so endorsed, shall be attached to the filed instrument to which it relates. Such filed instrument shall be effective as of the date and time established as the filing date by the Secretary of State pursuant to this subsection, except as to those persons who are substantially and adversely affected by such establishment and, as to those persons, the instrument shall be effective from the date and time endorsed on the affidavit of extraordinary condition or written waiver attached thereto.”.

Section 8. Amend Section 391(a)(7), Title 8, Delaware Code, by deleting the words “§ 103 (c)(6)” and inserting the words “§ 103 (c)(7)” in lieu thereof.

Section 9. Amend Section 391(h)(1), Title 8, Delaware Code, by deleting the word “For” and inserting in lieu thereof “For all services described in Subsections (a) and (c) of this Section that are requested to be completed within one (1) hour on the same day as the day of the request, an additional sum of up to $1,000 and for”.

Section 10. Amend Section 9607(b), Title 9, Delaware Code, by deleting the words “§ 103(c)(5)” and inserting the words “§ 103(c)(6)” in lieu thereof.

Section 11. This Act shall become effective 60 days from being signed into law.

Approved February 21, 2003