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.