Relating to the filing of a fraudulent financing statement in relation to certain secured transactions; authorizing the imposition of a fee.

Contracts

• Default Clauses: You must amend standard loan agreements to define the filing of a false or groundless *Affidavit of Impermissible Filing* by the borrower as an immediate Event of Default.
• Indemnification: Expand indemnification clauses to explicitly cover legal fees and costs associated with defending against administrative challenges under Texas Business & Commerce Code Section 9.5185.

Hiring/Training

• Mailroom Protocols: Front-line staff must be trained to flag Certified Mail containing specific keywords (e.g., "impermissible," "fraudulent," "affidavit") for immediate escalation to Legal.
• Legal/Compliance: In-house counsel must be trained on the bifurcation of remedies:
• Regulated Lenders (Banks/Insurers): Must be trained to file the *Notice of Regulated Lending Institution Status* within 90 days of a termination.
• Non-Regulated Lenders (Private Equity/Factors): Must be prepared to file a District Court petition within 90 days to preserve the lien.

Reporting & Record-Keeping

• Regulated Lending Institutions (RLIs): Prepare a standing file proving your licensure status (e.g., banking charter, insurance license) to attach to SOS filings if your liens are attacked.
• Audit Trails: Maintain rigid documentation of lien validity and payoff disputes. If a debtor claims a lien is "groundless" because of a disputed payoff, you need immediate access to the ledger to refute the affidavit.

Fees & Costs

• New Penalties: The civil penalty for filing a fraudulent financing statement has doubled to the greater of $10,000 or actual damages.
• Litigation Budget: Non-regulated lenders must budget for potential District Court filing fees and counsel costs to defend valid liens against fraudulent administrative termination.