79R8322 ATP-D
By: Giddings H.B. No. 2223
A BILL TO BE ENTITLED
AN ACT
relating to the making of a notation on a forged check by a
financial institution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 35, Business & Commerce
Code, is amended by adding Section 35.591 to read as follows:
Sec. 35.591. NOTATION OF FORGED CHECK. (a) In this
section, "victim of identify theft" means a person who has filed
with an appropriate law enforcement agency a criminal complaint
alleging commission of an offense under Section 32.51, Penal Code.
(b) If a victim of identity theft closes an account at a
financial institution as a result of the identity theft and
notifies the financial institution that the identity theft is the
reason for closing the account, the financial institution shall:
(1) make a physical notation of "forgery" on the front
and back of any document presented to the institution for payment
that purports to be a check drawn on the closed account; or
(2) make an electronic notation of "forgery" on each
electronic record pertaining to any document that is electronically
presented to the financial institution for payment and that
purports to be a check drawn on the closed account.
(c) If a financial institution does not possess the document
presented for payment as described by Subsection (b), the financial
institution shall instruct the person in possession of the document
to make a physical notation of "forgery" on the front and back of
the document.
(d) This section does not apply to a check if the financial
institution takes reasonable measures to verify the check's
authenticity with the victim of identity theft.
(e) If a financial institution does not physically note that
a document is a forgery, make an electronic notation that a document
is a forgery, or instruct a person in possession of a document to
make a notation that a document is a forgery as required by this
section, the financial institution assumes the obligation of the
victim of identity theft with respect to the document.
SECTION 2. This Act takes effect September 1, 2005.