S.B. No. 2221 amends the Business & Commerce Code to address the filing of fraudulent financing statements in secured transactions. The bill prohibits individuals from intentionally presenting or causing to be presented a financing statement that is forged, contains a material false statement, or is groundless. It establishes that individuals who violate this prohibition are liable to any person injured by the violation for damages of at least $10,000, court costs, and reasonable attorney's fees. Additionally, the bill allows property owners affected by fraudulent financing statements to file suit for specific relief, including the release of the fraudulent statement.

The bill introduces new provisions that enable a debtor identified in a financing statement to file an affidavit asserting that the statement was impermissibly filed. This affidavit must be accompanied by proof of notice to secured parties and will lead to the filing of a termination statement if accepted. The bill also outlines the process for secured parties to challenge the affidavit and provides for expedited hearings in such cases. Furthermore, it establishes a fee for filing the affidavit to cover administrative costs and clarifies that the filing office and its employees are not liable for actions taken under this section. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Commerce Code 9.5185, Commerce Code 9.510, Commerce Code 9.515 (Commerce Code 9)
Senate Committee Report: Commerce Code 9.5185, Commerce Code 9.510, Commerce Code 9.515 (Commerce Code 9)
Engrossed: Commerce Code 9.5185, Commerce Code 9.510, Commerce Code 9.515 (Commerce Code 9)
House Committee Report: Commerce Code 9.5185, Commerce Code 9.510, Commerce Code 9.515 (Commerce Code 9)
Enrolled: Commerce Code 9.5185, Commerce Code 9.510, Commerce Code 9.515 (Commerce Code 9)