By: Giddings, Bohac (Senate Sponsor - Ellis) H.B. No. 2223
(In the Senate - Received from the House May 2, 2005;
May 3, 2005, read first time and referred to Committee on Business
and Commerce; May 18, 2005, reported favorably by the following
vote: Yeas 6, Nays 0; May 18, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the making of a notation on and the processing of 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, notifies
the financial institution that the identity theft is the reason for
closing the account, provides the financial institution with a copy
of the criminal complaint described by Subsection (a), and requests
that the financial institution return checks with the notation
"forgery," the financial institution shall process as forgeries the
checks received after the customer takes those actions, in
accordance with the financial institution's customary procedures.
(c) A victim of identity theft who requests that a financial
institution return checks with the notation "forgery" as provided
by Subsection (b):
(1) may not assert that the financial institution is
liable under Section 4.402 for wrongfully dishonoring a check
returned after the victim makes the request; and
(2) shall hold the financial institution harmless for
acting in accordance with the victim's request.
SECTION 2. This Act takes effect September 1, 2005.
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