H.B. No. 73
    1-1                                AN ACT
    1-2  relating to the fraudulent filing of a financing statement;
    1-3  providing a penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter D, Chapter 9, Business & Commerce
    1-6  Code, is amended by adding Section 9.412 to read as follows:
    1-7        Sec. 9.412.  FRAUDULENT FILING.  (a)  A person may not
    1-8  intentionally or knowingly present for filing or cause to be
    1-9  presented for filing a financing statement if the person knows that
   1-10  the financing statement:
   1-11              (1)  is forged;
   1-12              (2)  contains a material false statement; or
   1-13              (3)  is groundless.
   1-14        (b)  A person who violates Subsection (a) is liable to the
   1-15  owner of property covered by the financing statement for:
   1-16              (1)  the greater of $5,000 or the owner's actual
   1-17  damages;
   1-18              (2)  court costs; and
   1-19              (3)  reasonable attorney's fees.
   1-20        (c)  A person who violates Subsection (a) commits an offense
   1-21  under Section 37.10, Penal Code.
   1-22        (d)  An owner of property covered by a fraudulent financing
   1-23  statement described in Subsection (a) shall have the following
   1-24  additional remedies:
    2-1              (1)  An owner may file suit in a court of suitable
    2-2  jurisdiction, requesting specific relief including, but not limited
    2-3  to, release of such fraudulent financing statement.  A successful
    2-4  plaintiff shall be entitled to reasonable attorney's fees and costs
    2-5  of court to be assessed against the person who filed the fraudulent
    2-6  financing statement.  In the event the person who filed the
    2-7  fraudulent financing statement cannot be located or is a fictitious
    2-8  person, then the owner of the property may serve the known or
    2-9  unknown defendant through publication in a newspaper of general
   2-10  circulation in the county wherein the suit is brought.
   2-11        SECTION 2.  This Act takes effect September 1, 1995.
   2-12        SECTION 3.  The importance of this legislation and the
   2-13  crowded condition of the calendars in both houses create an
   2-14  emergency and an imperative public necessity that the
   2-15  constitutional rule requiring bills to be read on three several
   2-16  days in each house be suspended, and this rule is hereby suspended.