Texas HB5377 amends the Business & Commerce Code to address fraudulent financing statements in secured transactions.

Texas HB5377 amends the Business & Commerce Code to establish procedures for handling fraudulent financing statements. It allows a person to file an affidavit if they believe a financing statement was filed without a reasonable basis or with intent to harass or defraud. The filing office must reject incomplete or prohibited affidavits. If a court issues an order preventing the termination statement from taking effect, the filing office must promptly file an amendment. The filing office must notify secured parties of record about the termination statement.

Texas HB5377 amends the Business & Commerce Code to address fraudulent financing statements in secured transactions.

Texas HB5377 amends the Business & Commerce Code to establish procedures for handling fraudulent financing statements. It allows a person to file an affidavit if they believe a financing statement was filed without a reasonable basis or with intent to harass or defraud. The filing office must reject incomplete or prohibited affidavits. If a court issues an order preventing the termination statement from taking effect, the filing office must promptly file an amendment. The filing office must notify secured parties of record about the termination statement.