TX HB5377

Increases civil liability for filing fraudulent financing statements from $5,000 to $10,000 minimum, plus actual damages, court costs, and attorney's fees, and expands who can recover damages from property owners to any person injured by the violation

Creates a new process allowing persons falsely named as debtors in financing statements to file an affidavit under penalty of perjury to challenge the filing, triggering an automatic termination statement effective after 30 days

Requires filing offices to notify secured parties by certified mail when a termination statement is filed based on a fraud affidavit, and provides secured parties 60 days to file an expedited court action to contest the termination

Establishes court procedures to prevent or reinstate termination statements, including provisions for reinstated financing statements to retain their original filing date and priority (except against purchasers who relied on the termination)

Exempts financing statements filed by regulated lending institutions (banks, credit unions, mortgage companies, etc.) from the affidavit challenge process and authorizes filing offices to charge fees to cover administrative costs