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 filing or causing to be filed a financing statement that is forged, contains false statements, or is groundless. It establishes that violators are liable to any injured party for damages of at least $10,000, court costs, and reasonable attorney's fees. Additionally, it allows property owners affected by fraudulent filings to seek specific relief through the courts, including the release of the fraudulent statement.

The bill introduces new provisions allowing individuals identified as debtors in questionable financing statements to file an affidavit asserting the impermissibility of the statement, which must be accompanied by proof of notice to secured parties. Upon acceptance of the affidavit, a termination statement will be filed, effective 30 days after filing. The bill also outlines the process for secured parties to challenge the affidavit and provides for the collection of a fee for filing the affidavit. 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)