IL HB5190

Creates new Section 9-501.1 prohibiting persons from filing false financing records with intent to harass or defraud, knowing the record is unauthorized, unrelated to valid transactions, or filed maliciously.

Establishes criminal penalties of Class A misdemeanor for first offense and Class 4 felony for subsequent violations of fraudulent filing prohibition.

Allows injured persons to recover actual damages or up to $10,000, plus attorney's fees, court costs, investigative expenses, and discretionary exemplary damages in civil actions.

Permits debtors to file affidavits with the Secretary of State challenging fraudulent records, requiring the Secretary to request supporting documentation and allowing termination of records after 30 days if fraud is reasonably suspected.

Exempts regulated financial institutions from fraudulent filing provisions but allows Secretary of State to request documentation verifying institutional status; permits court orders to reinstate terminated records or accept rejected records with retroactive filing dates.