By:  Marchant                                                     H.B. No. 3414



A BILL TO BE ENTITLED

AN ACT

relating to the filing of a financing statement record under the 
Uniform Commercial Code.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 9.516, Business and Commerce Code, is 
amended to read as follows:
	Section 9.516.  What Constitutes Filing; Effectiveness of 
Filing  (a)  Except as otherwise provided in Subsection (b), 
communication of a record to a filing office and tender of the 
filing fee or acceptance of the record by the filing office 
constitutes filing.
	(b)  Filing does not occur with respect to a record that a 
filing office refuses to accept because:
		(1)  the record is not on the National Standard form or 
a form approved by the International Association of Commercial 
Administrators (IACA) and adopted by administrative rule by the 
secretary of state.
		[(1)] (2)  the record is not communicated by a method 
or medium of communication authorized by the filing office;
		[(2)] (3)  an amount equal to or greater than the 
applicable filing fee is not tendered;
		[(3)] (4)  the filing office is unable to index the 
record because:
			(A)  in the case of an initial financing 
statement, the record does not provide a name for the debtor;
			(B)  in the case of an amendment or correction 
statement, the record:      
				(i)  does not identify the initial financing 
statement as required by Section 9.512 or 9.518, as applicable; or
				(ii)  identifies an initial financing 
statement whose effectiveness has lapsed under Section 9.515;
			(C)  in the case of an initial financing statement 
that provides the name of a debtor identified as an individual or an 
amendment that provides a name of a debtor identified as an 
individual that was not previously provided in the financing 
statement to which the record relates, the record does not identify 
the debtor's last name; or
			(D)  in the case of a record filed or recorded in 
the filing office described in Section 9.501(a)(1), the record does 
not provide a sufficient description of the real property to which 
it relates;
		[(4)] (5)  in the case of an initial financing 
statement or an amendment that adds a secured party of record, the 
record does not provide a name and mailing address for the secured 
party of record;
		[(5)] (6)  in the case of an initial financing 
statement or an amendment that provides a name of a debtor that was 
not previously provided in the financing statement to which the 
amendment relates, the record does not:
			(A)  provide a mailing address for the debtor;                               
			(B)  indicate whether the debtor is an individual 
or an organization; or   
			(C)  if the financing statement indicates that the 
debtor is an organization, provide:
				(i)  a type of organization for the debtor;                                 
				(ii)  a jurisdiction of organization for the 
debtor; or                   
				(iii)  an organizational identification 
number for the debtor or indicate that the debtor has none;
		[(6)] (7)  in the case of an assignment reflected in an 
initial financing statement under Section 9.514(a) or an amendment 
filed under Section 9.514(b), the record does not provide a name and 
mailing address for the assignee; or
		[(7)] (8)  in the case of a continuation statement, the 
record is not filed within the six-month period prescribed by 
Section 9.515(d).
	(c)  For purposes of Subsection (b):                                           
		(1)  a record does not provide information if the 
filing office is unable to read or decipher the information; and
		(2)  a record that does not indicate that it is an 
amendment or identify an initial financing statement to which it 
relates, as required by Section 9.512, 9.514, or 9.518, is an 
initial financing statement.
	(d)  A record that is communicated to the filing office with 
tender of the filing fee, but that the filing office refuses to 
accept for a reason other than one set forth in Subsection (b), is 
effective as a filed record except as against a purchaser of the 
collateral that gives value in reasonable reliance upon the absence 
of the record from the files.
	SECTION 2.  Amend Section 9.521, Business and Commerce Code, 
to read as follows:
	Section 9.521.  Uniform Form of Written Financing Statement 
and Amendment    
	(a)  A filing office that accepts written records may not 
refuse to accept a written initial financing statement in the 
following form and formaton the National Standard form or a form 
approved by the International Association of Commercial 
Administers (IACA) and adopted by administrative rule by the 
secretary of state, except for a reason set forth in Section 
9.516(b)[:].
	[Delete graphics of forms]                                                     
	(b)  A filing office that accepts written records may not 
refuse to accept a written record [in the following form and format] 
on the National Standard Form or a form approved by the 
International Association of Commercial Administrators (IACA) and 
adopted by administrative rule by the secretary of state, except 
for a reason set forth in Section 9.516(b)[:].
	[Delete graphics of forms]                                                     
	SECTION 3.  This Act takes effect January 1, 2004.