HB 1373 Summary

• Defines a financing statement as fraudulent if filed without consent of the obligor, debtor, or collateral owner; filed by an unauthorized agent or representative; filed to hinder or harass another person; or if forged.

• Allows persons affected by fraudulent financing statements to file a motion for judicial review, and authorizes courts to declare statements ineffective and order their termination or purge.

• Requires courts to award prevailing parties all costs including filing fees, attorney's fees, administrative costs, and other reasonable expenses related to judicial review.

• Makes knowingly or intentionally filing a fraudulent financing statement a Class A misdemeanor, elevated to a Class D felony if filed for purposes of hindering, harassing, or wrongfully interfering with another person.

• Directs the Secretary of State to create and post an online form to assist self-represented individuals in filing fraudulent financing statement challenges.