S.B. No. 1540
 
 
 
 
AN ACT
  relating to financing statements and other records under the
  secured transactions law.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 9.503, Business &
  Commerce Code, is amended to read as follows:
         (a)  A financing statement sufficiently provides the name of
  the debtor:
               (1)  if the debtor is a registered organization, only
  if the financing statement provides the name of the debtor
  indicated on the debtor's formation documents that are filed of
  public record in [of] the debtor's jurisdiction of organization to
  create the registered organization and that show [shows] the debtor
  to have been organized, including any amendments to those documents
  for the express purpose of amending the debtor's name;
               (2)  if the debtor is a decedent's estate, only if the
  financing statement provides the name of the decedent and indicates
  that the debtor is an estate;
               (3)  if the debtor is a trust or a trustee acting with
  respect to property held in trust, only if the financing statement:
                     (A)  provides the name specified for the trust in
  its organic documents or, if no name is specified, provides the name
  of the settlor and additional information sufficient to distinguish
  the debtor from other trusts having one or more of the same
  settlors; and
                     (B)  indicates, in the debtor's name or otherwise,
  that the debtor is a trust or is a trustee acting with respect to
  property held in trust; [and]
               (4)  if the debtor is an individual, if the financing
  statement provides the individual's name shown on the individual's
  driver's license or identification certificate issued by the
  individual's state of residence; and
               (5)  in other cases:
                     (A)  if the debtor has a name, only if the
  financing statement provides the individual or organizational name
  of the debtor; and
                     (B)  if the debtor does not have a name, only if
  the financing statement provides the names of the partners,
  members, associates, or other persons comprising the debtor.
         SECTION 2.  Subsection (b), Section 9.516, Business &
  Commerce Code, is amended to read as follows:
         (b)  Filing does not occur with respect to a record that a
  filing office refuses to accept because:
               (1)  the record is not communicated by a method or
  medium of communication authorized by the filing office;
               (2)  an amount equal to or greater than the applicable
  filing fee is not tendered;
               (3)  the filing office is unable to index the record
  because:
                     (A)  in the case of an initial financing
  statement, the record does not provide a name for the debtor;
                     (B)  in the case of an amendment or correction
  statement, the record:
                           (i)  does not identify the initial financing
  statement as required by Section 9.512 or 9.518, as applicable; or
                           (ii)  identifies an initial financing
  statement whose effectiveness has lapsed under Section 9.515;
                     (C)  in the case of an initial financing statement
  that provides the name of a debtor identified as an individual or an
  amendment that provides a name of a debtor identified as an
  individual that was not previously provided in the financing
  statement to which the record relates, the record does not identify
  the debtor's last name; or
                     (D)  in the case of a record filed or recorded in
  the filing office described in Section 9.501(a)(1), the record does
  not provide the name of the debtor and a sufficient description of
  the real property to which it relates;
               (4)  in the case of an initial financing statement or an
  amendment that adds a secured party of record, the record does not
  provide a name and mailing address for the secured party of record;
               (5)  in the case of an initial financing statement or an
  amendment that provides a name of a debtor that was not previously
  provided in the financing statement to which the amendment relates,
  the record does not:
                     (A)  provide a mailing address for the debtor;
                     (B)  indicate whether the debtor is an individual
  or an organization; or
                     (C)  if the financing statement indicates that the
  debtor is an organization, provide:
                           (i)  a type of organization for the debtor;
                           (ii)  a jurisdiction of organization for the
  debtor; or
                           (iii)  an organizational identification
  number for the debtor or indicate that the debtor has none;
               (6)  in the case of an assignment reflected in an
  initial financing statement under Section 9.514(a) or an amendment
  filed under Section 9.514(b), the record does not provide a name and
  mailing address for the assignee;
               (7)  in the case of a continuation statement, the
  record is not filed within the six-month period prescribed by
  Section 9.515(d); or
               (8)  the record is not on an industry standard form,
  including a national standard form or a form approved by the
  International Association of Commercial Administrators, adopted by
  rule by the secretary of state.
         SECTION 3.  Section 9.517, Business & Commerce Code, is
  amended to read as follows:
         Sec. 9.517.  EFFECT OF INDEXING ERRORS. The failure of the
  filing office to index a record or to correctly index information
  contained in a record does not affect the effectiveness of the filed
  record.
         SECTION 4.  Section 9.518, Business & Commerce Code, is
  amended by amending Subsection (a) and adding Subsection (d) to
  read as follows:
         (a)  Any person named as a debtor or a secured party [A
  person] may file [in the filing office] a correction statement with
  respect to a record [indexed there under the person's name] if the
  person believes that the record is inaccurate or was wrongfully
  filed.
         (d)  Filing of a correction statement is not effective as an
  amendment to a filed financing statement and is not sufficient to
  effect a change in the manner in which the filing office has indexed
  a financing statement or information contained in a financing
  statement.
         SECTION 5.  Section 9.705, Business & Commerce Code, is
  amended by amending Subsection (c) and adding Subsection (g) to
  read as follows:
         (c)  The revision does not render ineffective an effective
  financing statement that, before the effective date of the
  revision, is filed and satisfies the applicable requirements for
  perfection under the law of the jurisdiction governing perfection
  as provided in Section 9.103, as it existed immediately before the
  effective date of the revision.  However, except as otherwise
  provided in Subsections (d), [and] (e), and (g) and Section 9.706,
  the financing statement ceases to be effective at the earlier of:
               (1)  the time the financing statement would have ceased
  to be effective under the law of the jurisdiction in which it is
  filed; or
               (2)  June 30, 2006.
         (g)  Subsection (c)(2) does not apply to a financing
  statement that was filed before July 1, 2001, in the proper office
  in this state pursuant to Section 9.401, as that section existed
  immediately before July 1, 2001, and as to which the proper filing
  office was not changed pursuant to Section 9.501 of the revision.
  The lapse date of such a financing statement is the day when the
  financing statement would have ceased to be effective under Section
  9.403(b), as that section existed immediately before July 1, 2001.
  On timely filing of a continuation statement within six months
  before that lapse date, the effectiveness of the financing
  statement continues for another period of five years commencing on
  the lapse date, and succeeding continuation statements may be filed
  within six months before the expiration of the five-year period and
  each additional five-year period to continue the effectiveness of
  the financing statement.
         SECTION 6.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1540 passed the Senate on
  April 19, 2007, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1540 passed the House on
  May 17, 2007, by the following vote:  Yeas 143, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor