The bill amends the Business & Commerce Code to address the filing of fraudulent financing statements in secured transactions. It prohibits individuals from knowingly presenting or causing to be presented a financing statement that is forged, contains false statements, or is groundless. Violators are liable to any injured party for damages of at least $10,000, court costs, and reasonable attorney's fees. Additionally, the bill allows property owners affected by fraudulent filings to seek specific relief through the courts, including the release of the fraudulent statement.

New provisions are introduced that enable a debtor identified in a financing statement to file an affidavit asserting the impermissibility of the statement, which the filing office must process. The bill also outlines the procedures for filing termination statements and provides for expedited court actions regarding disputes over the validity of financing statements. Furthermore, it establishes a fee for filing affidavits and clarifies that the filing office and its employees are not liable for actions taken in compliance with the new regulations. The bill 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)