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A BILL TO BE ENTITLED
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AN ACT
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relating to financing statements and other records under the |
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secured transactions law. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 9.503(a), Business & Commerce Code, is |
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amended to read as follows: |
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(a) A financing statement sufficiently provides the name of |
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the debtor: |
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(1) if the debtor is a registered organization, only |
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if the financing statement provides the name of the debtor |
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indicated on the debtor's formation documents that are filed of |
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public record in [of] the debtor's jurisdiction of organization to |
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create the registered organization and that show [shows] the debtor |
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to have been organized, including any amendments to those documents |
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for the express purpose of amending the debtor's name; |
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(2) if the debtor is a decedent's estate, only if the |
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financing statement provides the name of the decedent and indicates |
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that the debtor is an estate; |
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(3) if the debtor is a trust or a trustee acting with |
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respect to property held in trust, only if the financing statement: |
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(A) provides the name specified for the trust in |
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its organic documents or, if no name is specified, provides the name |
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of the settlor and additional information sufficient to distinguish |
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the debtor from other trusts having one or more of the same |
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settlors; and |
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(B) indicates, in the debtor's name or otherwise, |
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that the debtor is a trust or is a trustee acting with respect to |
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property held in trust; [and] |
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(4) if the debtor is an individual, if the financing |
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statement provides the individual's name shown on the individual's |
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driver's license or identification certificate issued by the |
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individual's state of residence; and |
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(5) in other cases: |
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(A) if the debtor has a name, only if the |
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financing statement provides the individual or organizational name |
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of the debtor; and |
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(B) if the debtor does not have a name, only if |
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the financing statement provides the names of the partners, |
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members, associates, or other persons comprising the debtor. |
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SECTION 2. Section 9.516(b), Business & Commerce Code, is |
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amended to read as follows: |
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(b) Filing does not occur with respect to a record that a |
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filing office refuses to accept because: |
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(1) the record is not communicated by a method or |
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medium of communication authorized by the filing office; |
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(2) an amount equal to or greater than the applicable |
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filing fee is not tendered; |
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(3) the filing office is unable to index the record |
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because: |
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(A) in the case of an initial financing |
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statement, the record does not provide a name for the debtor; |
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(B) in the case of an amendment or correction |
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statement, the record: |
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(i) does not identify the initial financing |
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statement as required by Section 9.512 or 9.518, as applicable; or |
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(ii) identifies an initial financing |
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statement whose effectiveness has lapsed under Section 9.515; |
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(C) in the case of an initial financing statement |
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that provides the name of a debtor identified as an individual or an |
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amendment that provides a name of a debtor identified as an |
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individual that was not previously provided in the financing |
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statement to which the record relates, the record does not identify |
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the debtor's last name; or |
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(D) in the case of a record filed or recorded in |
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the filing office described in Section 9.501(a)(1), the record does |
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not provide the name of the debtor and a sufficient description of |
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the real property to which it relates; |
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(4) in the case of an initial financing statement or an |
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amendment that adds a secured party of record, the record does not |
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provide a name and mailing address for the secured party of record; |
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(5) in the case of an initial financing statement or an |
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amendment that provides a name of a debtor that was not previously |
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provided in the financing statement to which the amendment relates, |
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the record does not: |
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(A) provide a mailing address for the debtor; |
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(B) indicate whether the debtor is an individual |
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or an organization; or |
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(C) if the financing statement indicates that the |
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debtor is an organization, provide: |
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(i) a type of organization for the debtor; |
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(ii) a jurisdiction of organization for the |
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debtor; or |
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(iii) an organizational identification |
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number for the debtor or indicate that the debtor has none; |
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(6) in the case of an assignment reflected in an |
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initial financing statement under Section 9.514(a) or an amendment |
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filed under Section 9.514(b), the record does not provide a name and |
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mailing address for the assignee; |
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(7) in the case of a continuation statement, the |
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record is not filed within the six-month period prescribed by |
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Section 9.515(d); or |
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(8) the record is not on an industry standard form, |
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including a national standard form or a form approved by the |
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International Association of Commercial Administrators, adopted by |
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rule by the secretary of state. |
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SECTION 3. Section 9.517, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 9.517. EFFECT OF INDEXING ERRORS. The failure of the |
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filing office to index a record or to correctly index information |
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contained in a record does not affect the effectiveness of the filed |
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record. |
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SECTION 4. Section 9.518, Business & Commerce Code, is |
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amended by amending Subsection (a) and adding Subsection (d) to |
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read as follows: |
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(a) Any person named as a debtor or a secured party [A
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person] may file [in the filing office] a correction statement with |
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respect to a record [indexed there under the person's name] if the |
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person believes that the record is inaccurate or was wrongfully |
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filed. |
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(d) Filing of a correction statement is not effective as an |
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amendment to a filed financing statement and is not sufficient to |
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effect a change in the manner in which the filing office has indexed |
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a financing statement or information contained in a financing |
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statement. |
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SECTION 5. Section 9.705, Business & Commerce Code, is |
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amended by amending Subsection (c) and adding Subsection (g) to |
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read as follows: |
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(c) The revision does not render ineffective an effective |
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financing statement that, before the effective date of the |
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revision, is filed and satisfies the applicable requirements for |
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perfection under the law of the jurisdiction governing perfection |
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as provided in Section 9.103, as it existed immediately before the |
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effective date of the revision. However, except as otherwise |
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provided in Subsections (d), [and] (e), and (g) and Section 9.706, |
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the financing statement ceases to be effective at the earlier of: |
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(1) the time the financing statement would have ceased |
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to be effective under the law of the jurisdiction in which it is |
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filed; or |
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(2) June 30, 2006. |
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(g) Subsection (c)(2) does not apply to a financing |
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statement that was filed before July 1, 2001, in the proper office |
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in this state pursuant to Section 9.401, as that section existed |
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immediately before July 1, 2001, and as to which the proper filing |
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office was not changed pursuant to Section 9.501 of the revision. |
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The lapse date of such a financing statement is the day when the |
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financing statement would have ceased to be effective under Section |
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9.403(b), as that section existed immediately before July 1, 2001. |
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On timely filing of a continuation statement within six months |
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before that lapse date, the effectiveness of the financing |
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statement continues for another period of five years commencing on |
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the lapse date, and succeeding continuation statements may be filed |
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within six months before the expiration of the five-year period and |
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each additional five-year period to continue the effectiveness of |
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the financing statement. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |