Department of Corrections and Community Supervision

Rules & Regulations

Update Rules for Standards of Inmate Behavior, Inmate Correspondence Program and Privileged Correspondence to Prevent Fraudulent Inmate Use of the Uniform Commercial Code (Sections 270.2, 720.3, 720.4, 721.2 & 721.3 of Title 7 NYCRR)

Date filed with the Department of State (DOS): 7/14/2009

DOS #: COR 30-09-00018

Date adopted: 12/09/2009

Description: To prevent a scheme whereby inmates have fraudulently utilized provisions of the Uniform Commercial Code (UCC) to file baseless liens with the Secretary of State against Department employees and others.

TEXT OF RULE

The Department of Correctional Services amends 7NYCRR Part 720, section 720.3 (c) and section 720.3 (e) and adds a new subdivision (7) to Part 720 section 720.4(d). The Department amends Part 721, sections 721.2(b) (4) and 721.2(b) (5) and adds a new subdivision (6) to Part 721 section 721.2(b). The Department also amends Part 721 section 721.3(a) (2), and amends Part 270 by adding a new subdivision (iv) to section 270.2(B) (8) and new subdivision (xx) to section 270.2 (B) (14) as indicated below:

Amend section 720.3 (c).

(c) Except for oversize envelopes and parcels, [and] inmate-to-inmate correspondence, and correspondence specified in §721.3 (a) (2) of this Chapter, outgoing correspondence may be sealed by the inmate.

Amend section 720.3 (e).

(e) Outgoing correspondence , except as specified in §721.3 (a) (2) of this Chapter, shall not be opened, inspected, or read without express written authorization from the facility superintendent.

Add new section 720.4(d) (7).

(7) Uniform Commercial Code (UCC) Financing Statements. Any UCC Article 9 form, including but not limited to any financing statement (UCC1, UCC1Ad, UCC1AP, UCC3, UCC3Ad, UCC3AP, UCC1CAd), correction statement (UCC5) or information request (UCC11), whether printed, copied, typed or hand written, or any document concerning a scheme involving an inmate’s “strawman.” “House Joint Resolution 192 of 1933,” the “Redemptive Process,” “Acceptance for Value,” or document indicating copyright of an inmate’s name is prohibited absent prior written authorization from the superintendent. All such material and any other material contained within the correspondence shall be examined by the superintendent in consultation with Counsel’s Office and may be withheld for investigation. An inmate may request authorization from the superintendent to receive specific materials by providing the superintendent with specific, legitimate legal reasons why such materials are required.

Amend sections 721.2(b) (4) and 721.2(b) (5) and adds new subdivision (6) to section 721.2(b) as follows:

(4) mail received from the State Education Department, excluding materials sent to inmates marked "legal mail" by the New York State Library's Prisoner Services Project; [and]
(5) mail received from any county or local tax assessor or clerk, except for a clerk of a court[.]; and
(6) mail received from the secretary of state, department of state, corporation division or uniform commercial code unit of any state.

Amend section 721.3(a)(2).

(2) Outgoing privileged correspondence may be sealed by the inmate, and such correspondence shall not be opened, inspected, or read without express written authorization from the facility superintendent as specified in subdivision (c) of this section. Notwithstanding the foregoing or any other provision of this Chapter, outgoing mail to the secretary of state, department of state, corporation division or uniform commercial code unit of any state shall be submitted by the inmate unsealed and is subject to inspection.

Add new section 270.2 (B) (8) iv

107.21 An inmate shall not file or record any document or instrument of any description which purports to create a lien or record a security interest of any kind against the person or property of any officer or employee of the Department, the State of New York or the United States absent prior written authorization from the superintendent or a court order authorizing such filing.

II,III

Add new section 270.2 (B) (14) xx

113.30 An inmate shall not possess any Uniform Commercial Code (UCC) Article 9 form, including but not limited to any financing statement (UCC1, UCC1Ad, UCC1AP, UCC3, UCC3Ad, UCC3AP, UCC1CAd), correction statement (UCC5) or information request (UCC11), whether printed, copied, typed or hand written, or any document concerning a scheme involving an inmate’s “strawman,” “House Joint Resolution 192 of 1933,” the “Redemptive Process,” “Acceptance for Value” presentments or document indicating copyright or attempted copyright of an inmate’s name absent prior written authorization from the superintendent.

II,III

Changes in the proposed text are indicated by underlining new text and [bracketing] text to be deleted. Rules that are new are presented as regular text without underlining or brackets. New and/or repealed rules are noted in the description heading at the top of the document.

The complete listing of New York Codes, Rules, and Regulations (NYCRR) is available online through the NYS Department of State website.