Section 58: Offences and penalties

(1) A person who, being required to supply information for the registration, amendment or cancellation of a Financing Statement under this Act, knowingly provides a false or misleading information to the Registry, commits an offence and is liable on conviction to:
(a) a term of imprisonment for 1 year or a fine of N100,000.00, or both; and in addition, where he has by his conduct benefited financially, shall fully indemnify the Registry and the person affected by his conduct;
(b) in the case of a corporation, partnership or other entity:
(i) the Court may impose the penalty referred to in paragraph (a) of this sub-section on every officer of the corporation, partnership or entity found to have facilitated or to have been personally responsible for the offence; and
(ii) the corporation, partnership or entity shall be liable to a fine of N 1,000,000.00.
(2) If a grantor against whom a financing statement has been registered sells or otherwise disposes the asset to a third party without disclosing the fact of encumbrance commits an offence and is liable on conviction:
(a) to a term of imprisonment of 1 year or a fine of N100,000.00, or both;
(b) where the offender has by his conduct benefitted financially, he shall, in addition to the fine and term of imprisonment specified in paragraph (a) of this sub-section, fully indemnify the Registry and the person affected by his conduct.
(3) In this section, "False or misleading information" means the entry of information of facts required to assure the public of the truth and accuracy of the information by a person who knew that the entry is false in any material particular or is recklessly neglectful of the duty to ensure the truth or accuracy of the information supplied by that person.