TX SB2221

Increases civil liability for filing fraudulent UCC financing statements from $5,000 to $10,000 minimum damages, 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 new administrative process allowing persons named as debtors in allegedly fraudulent financing statements to file a sworn affidavit challenging the filing, which triggers automatic filing of a termination statement effective 30 days later

Requires challengers to provide advance certified mail notice to secured parties of record between 5-30 days before filing the affidavit, with specific statutory warning language in 14-point bold type

Establishes expedited court procedures for secured parties to contest termination within 90 days, with courts able to suspend termination effectiveness and reinstate financing statements if the original filing was legitimate

Exempts regulated lending institutions (banks, credit unions, mortgage companies, etc. subject to state or federal oversight) from the administrative termination process, requiring such institutions to notify the filing office within 90 days to reinstate their financing statements