The administration of the UCC has an important impact on the economy and upon the rights of the public, in this state and in the United States. The volume of international, interstate and multistate transactions pursuant to the UCC requires that the administration of the UCC be conducted in a manner that promotes both local and multi-jurisdictional commerce by striving for uniformity in policies and procedures among the various states.

As provided in §9.526, Texas Business and Commerce Code, the interpretation and implementation of the filing office's duties and responsibilities shall be expressed in a written set of administrative rules, which the public shall have a voice in creating. Such rules have the following purposes:

To simplify and improve the administration of the UCC by promoting uniform UCC filing procedures in this state and in the nation;

To simplify the public's ability to discover and understand the UCC filing procedures of the various states by establishing a uniform framework for describing the procedures;

To increase public access to information;

To increase public participation in the formulation of administrative policy and procedures; and

To increase public accountability of the filing officer.

§95.101.Definitions.

The following terms shall have the respective meanings provided in this rule. Terms not defined in this rule which are defined in the UCC shall have the respective meanings accorded such terms in the UCC.

"Amendment" means a UCC document that purports to amend the information contained in a financing statement. Amendments include assignments, continuations and terminations.

"Assignment" is an amendment that purports to reflect an assignment of all or a part of a secured party's power to authorize an amendment to a financing statement.

"Continuation" means an amendment that purports to continue the effectiveness of a financing statement.

"Correction statement" means a UCC document that purports to indicate that a financing statement is inaccurate or wrongfully filed.

"Filing office" and "filing officer" mean Texas Secretary of State.

"Financing statement" means a record or records composed of an initial financing statement and any filed record(s) relating to the initial financing statement.

"Individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate.

(9)

"Initial financing statement" means a UCC document that does not identify itself as an amendment or identify an initial financing statement to which it relates, as required by §§9.512, 9.514, or 9.518, Texas Business and Commerce Code.

(10)

"Organization" means a legal person who is not an individual under §95.101(8) of this title.

(11)

"Remitter" means a person who tenders a UCC document to the filing officer for filing, whether the person is a filer or an agent of a filer responsible for tendering the document for filing. "Remitter" does not include a person responsible merely for the delivery of the document to the filing office, such as the postal service or a delivery service but does include a service provider who acts as a filer's representative in the filing process.

(12)

"Secured party of record" means, with respect to a financing statement, a person whose name is provided as the name of a secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under §9.514(a), Texas Business and Commerce Code, the assignee named in the initial financing statement is the secured party of record with respect to the financing statement. If an amendment of a financing statement which provides the name of a person as a secured party or a representative of a secured party is filed, the person named in the amendment is a secured party of record. If an amendment is filed under §9.514(b), Texas Business and Commerce Code, the assignee named in the amendment is a secured party of record. A person remains a secured party of record until the filing of an amendment of the financing statement which deletes the person.

(13)

"Termination" means an amendment intended to indicate that the related financing statement has ceased to be effective with respect to the secured party authorizing the termination.

(14)

"UCC" means the Uniform Commercial Code as adopted in this state and in effect from time to time.

(15)

"UCC document" means an initial financing statement, an amendment, an assignment, a continuation, a termination or a correction statement. The word "document" in the term "UCC document" shall not be deemed to refer exclusively to paper or paper-based writings; it being understood that UCC documents may be expressed or transmitted electronically or through media other than such writings. (Note: this definition is used for the purpose of these rules only. The use of the term "UCC document" in these rules has no relation to the definition of the term "document" in §9.102(a)(30), Texas Business and Commerce Code.)

§95.102.Singular and Plural Forms.

Singular nouns shall include the plural form, and plural nouns shall include the singular form, unless the context requires otherwise.

§95.103.Place to File.

The Office of the Secretary of State is the office for filing UCC documents relating to all types of collateral except for timber to be cut, as-extracted collateral (§9.102(a)(6), Texas Business and Commerce Code) and, when the relevant financing statement is filed as a fixture filing, goods which are or are to become fixtures. Regardless of the nature of the collateral, the Office of the Secretary of State is the office for filing all UCC documents where the debtor is a transmitting utility.

§95.104.Filing Office Identification.

In addition to the promulgation of these rules, the filing office will disseminate information of its location, mailing address, telephone and fax numbers, and its internet and other electronic "addresses" through usual and customary means. Electronic mail cannot be used for filing UCC documents, but may be used for requesting searches of the records of financing statements.

§95.105.Office Hours.

Although the filing office maintains regular office hours, it receives transmissions electronically and by telefacsimile 24 hours per day, 365 days per year, except for scheduled maintenance and unscheduled interruptions of service. Electronic communications may be retrieved and processed periodically (but no less often than once each day the filing office is open for business) on a batch basis.

§95.106.UCC Document Delivery.

UCC documents may be tendered for filing at the filing office as follows.

Personal delivery, at the filing office's street address. The file time for a UCC document delivered by this method is when delivery of the UCC document is accepted by the filing office (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected).

Delivery service, at the filing office's street address. The file time for a UCC document delivered by this method is the 5:00 PM CT on a day the filing office is open to the public (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected).

Postal service delivery, to the filing office's street or mailing address. The file time for a UCC document delivered by this method is the 5:00 PM CT on a day the filing office is open to the public (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected).

Telefacsimile (fax) delivery, to the filing office's fax filing telephone number. The file time for a UCC document delivered by this method is when delivery of the UCC document is accepted by the filing office (even though the UCC document may not yet have been accepted for filing, may be subsequently rejected, and may indicate that the UCC document was received at an earlier time.

Electronic filing.

UCC documents may be transmitted electronically using the ANSI X12 154 transmission standard as described in §95.350 et seq. of this title. The file time for a UCC document delivered by this method is the time that the filing office's EDI system analyzes the relevant transmission and determines that all the required elements of the transmission have been received in a required format and are machine-readable.

UCC documents may be transmitted electronically through on-line entry as described in §95.370 et seq. of this title. The file time for a UCC document delivered by this method is the time that the filing office's on-line system analyzes the relevant transmission and determines that all the required elements of the transmission have been received in a required format and are machine-readable.

§95.107.Search Request Delivery.

UCC search requests may be delivered to the filing office by any of the means by which UCC documents may be delivered to the filing office. Requirements concerning search requests are set forth in §95.500 et seq. of this title. UCC search requests upon a debtor named on an initial financing statement may be made by an appropriate indication on the face of the initial financing statement form if the form is entitled to be filed with the relevant filing fee and the relevant search fee is also tendered with the initial financing statement as described in §95.111 of this title.

§95.108.Approved Forms.

Forms for UCC documents that conform to the requirements of this rule will be acceptable by the filing office.

Statutory forms. The forms set forth in §9.521, Texas Business and Commerce Code, will be acceptable.

IACA forms approved. A form approved for the relevant UCC document by the International Association of Corporation Administrators on or prior to July 1, 2001, will be acceptable.

Secretary of State-approved. A form for the relevant UCC document approved by the Office of the Secretary of State will be acceptable. Copies of all such forms then approved shall be distributed with these rules when they are distributed by the filing office and the filing office shall cause copies of such forms to be made available to prospective filers and remitters upon request.

Specifications pertaining to the prescribed forms or a list of approved printers and form suppliers may be obtained by writing to the Office of the Secretary of State, Uniform Commercial Code Section, P.O. Box 13193, Austin, Texas 78711-3193.

Prior permission to print prescribed forms must be obtained in writing from the Agency. A printer must submit five complete sets of each type of form to the Agency for examination. Within 30 days of receipt of such forms, the Agency will transmit to the printer written notification of the results of the examination. Such notification will grant permission to print forms or express the reasons for refusal to grant permission.

Where a printer produces forms with a name other than that of the approved printer in the bottom right corner, the printer must notify the Agency in writing of such name(s) and include a sample form for each name(s). If these entities sell forms, the printer must inform the Agency that the entity is a supplier and give the supplier's business address and telephone number for inclusion on the Agency supplier list.

The Agency will notify approved printers of any revisions which must be made to the prescribed forms. Printers must submit five revised forms of each type to the Agency for examination. Within 30 days of receipt of the revised forms, the Agency will transmit written notification of the results of the examination. The notification will grant permission to print forms or express the reasons for refusal to grant permission.

(E)

The Agency may suspend permission to print forms at any time for failure to comply with this section or failure to maintain compliance with form specifications.

Electronic filings. A UCC document transmitted electronically pursuant to the ANSI X12 154 standard and the procedures set forth in §95.350 et seq. of this title or pursuant to on-line data entry procedures set forth in §95.370 et seq. of this title will be acceptable.

§95.109.Form--UCC Search.

A form that meets the requirements regarding dimensions and location of information on the search form approved by the Office of the Secretary of State, or that is transmitted electronically in accordance with §95.350 et seq. or §95.370 et seq. of this title will be acceptable.

§95.110.Forms Suppliers.

The filing office will make lists of forms suppliers available to prospective filers and remitters upon request.

§95.111.Filing Fees.

Filing fee. The fee for filing and indexing a UCC document of one or two pages communicated on paper or in a paper-based format (including faxes) is pursuant to §9.525(a)(1), Texas Business and Commerce Code. If there are additional pages, the fee is pursuant to §9.525(a)(2), Texas Business and Commerce Code. But the fee for filing and indexing a UCC document communicated by a medium authorized by these rules which is other than on paper or in a paper-based format is pursuant to §9.525(a)(3), Texas Business and Commerce Code.

Additional fees. In addition to fees set forth in §95.111(a) of this title, a fee pursuant to §9.525(b)(1), Texas Business and Commerce Code, shall be paid for an initial financing statement that indicates that it is filed in connection with a public-finance transaction and a fee pursuant to §9.525(b)(2), Texas Business and Commerce Code, shall be paid for an initial financing statement that indicates that it is filed in connection with a manufactured-home transaction.

UCC search fee. The fee for a UCC search request communicated on paper or in a paper-based format is pursuant to §9.525(d)(1), Texas Business and Commerce Code. The fee for a UCC search request communicated by a medium authorized by these rules which is other than on paper or in a paper-based format is pursuant to §9.525(d)(2), Texas Business and Commerce Code.

(d)

Certified copies. The fee for certified copies of records is pursuant to §552.261, Texas Government Code, and §71.8 of this title.

(e)

Self-service pages. The fee for uncertified copies of records is pursuant to §552.261, Texas Government Code, and §71.8 of this title.

(f)

Special fees for fax filings. The fee for filing and indexing a UCC document of one or two pages communicated on paper or in a paper-based format is pursuant to §9.525(a)(1), Texas Business and Commerce Code. If there are additional pages, the fee is pursuant to §9.525(a)(2), Texas Business and Commerce Code. The fee for expedite handling is pursuant to §405.032, Texas Government Code and the fee per acknowledgment page is pursuant to §405.031, Texas Government Code.

(g)

Special fees for fax UCC searches. The fee for a UCC search request communicated on paper or in a paper-based format is pursuant to §9.525(d)(1), Texas Business and Commerce Code. The fee for a UCC search request communicated by a medium authorized by these rules which is other than on paper or in a paper-based format is pursuant to §9.525(d)(2), Texas Business and Commerce Code. The fee for the fax service is pursuant to §405.032, Texas Government Code and §71.8 of this title.

(h)

Master filing filing fee. The fee for a master filing delivered in a form pursuant to §9.512(f) and §9.514(d), Texas Business and Commerce Code, is pursuant to §9.525(f), Texas Business and Commerce Code.

§95.112.Expedited Services.

The following information, instructions, and fees are applicable to requests for expedited service.

Description of expedited service and fee.

Expedited Filing. UCC documents presented in person or fax are treated as an expedited filing and subject to an expedited handling fee pursuant to §405.032, Texas Government Code and §71.8 of this title.

Responding to UCC search request.

(i)

Special fees for fax filings - per page copies. The fee for regular service delivered in a turnaround time of two to five working days for a UCC document is pursuant to §9.525, Texas Business and Commerce Code. Charges for copies that accompany this regular service are pursuant to §552.261, Texas Government Code, and §71.8 of this title.

(ii)

The fee for expedited service delivered in a turnaround time of one working day for a UCC document is pursuant to §9.525, Texas Business and Commerce Code. Charges for copies that accompany this expedited service is pursuant to §552.261, Texas Government Code, and §71.8 of this title and an expedited handling fee is pursuant to §405.032, Texas Government Code. A completed expedited search request may either be mailed, faxed, or picked up in person.

How to request expedited service.

Expedited filing. UCC documents presented in person and fax are treated as an expedited filing and subject to an expedited handling fee described in paragraph (1) of this section.

Responding to UCC search request. UCC documents may be requested by mail, telephone, fax, EDI, SOSDirect, or in person.

§95.113.Methods of Payment.

Filing fees and fees for public records services may be paid by the following methods.

Cash. The filing officer discourages cash payment unless made in person to the cashier at the filing office.

Checks. Checks made payable or endorsed to the filing office, including checks in an amount to be filled in by a filing officer but not to exceed a particular amount, will be accepted for payment if they are cashier's checks or certified checks drawn on a bank acceptable to the filing office or if the drawer is acceptable to the filing office. All checks must be drawn on an U.S. bank.

Electronic funds transfer. The filing office will accept payment via electronic funds transfer under National Automated Clearing House Association ("NACHA") rules from remitters who have entered into appropriate NACHA-approved arrangements for such transfers and who authorize the relevant transfer pursuant to such arrangements and rules.

Client account. A remitter may open an account for prepayment of filing fees by submitting an application furnished by the filing officer. The filing officer shall issue an account number to be used by a remitter who chooses to pay filing fees in advance. The filing officer shall deduct filing fees from the remitter's client account when authorized to do so by the remitter. The remitter may authorize transactions against the client account by use of the remitter's SOSDirect account, by written authorization, and by telephone authorization.

Credit card. The filing office accepts payments using credit cards issued by approved credit card issuers. Approved credit card issuers are: MasterCard, Visa, and Discover. Remitters shall provide the filing officer with the card number, the expiration date of the card, the name of the approved card issuer, the name of the person or entity to whom the card was issued and the billing address for the card. Payment will not be deemed tendered until the issuer or its agent has confirmed to the filing office that payment will be forthcoming.

§95.114.Overpayment and Underpayment Policies.

Overpayment. The filing officer shall accrue the amount of the overpayment to the client account or refund the amount of an overpayment to the remitter upon the written request of the remitter.

Underpayment. Upon receipt of a document with an insufficient fee, the filing officer shall do the following: The document shall be returned to the remitter as provided in §95.205 of this title.

§95.115.Public Records Services.

Public records services are provided on a non-discriminatory basis to any member of the public on the terms described in these rules. The following methods are available for obtaining copies of UCC documents and copies of data from the UCC information management system.

Individually identified documents. Copies of individually identified UCC documents are available in the following forms: Paper, TIF files, or PDF files.

Bulk copies of documents. Bulk copies of UCC documents are available in the following forms: Paper, microfilm prior to July 1, 2001, or CD-ROM after July 1, 2001.

Data from the information management system. A list of available data elements from the UCC information management system, and the file layout of the data elements, is available from the agency website. Data from the information management system is available as follows.

Daily Filing Update/Replacement. Updates of information from the UCC information management system are available on a daily basis.

Master Unload. A bulk data extract of information from the UCC information management system is available on a monthly basis.

Format. Extracts from the UCC information management system are available in the following formats: FTP and CD-ROM.

SOSDirect services. On-line services make UCC data and images available on a subscription basis. A description of subscription services is available from the filing officer.

§95.116.Fees for Public Records Services.

Fees for public records services are established as follows.

Paper copies of individual documents.

Regular delivery method. The fee for UCC search copies is pursuant to §9.525(d), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses).

Fax delivery. The fee for a fax service is pursuant to §405.032, Texas Government Code and §71.8 of this title.

Bulk copies of documents.

Paper. The fee for bulk copies of UCC documents is pursuant to §9.525(d), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

Microfilm. The fee for UCC documents reproduced on microfilm prior to July 1, 2001, is pursuant to §9.525(d), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

CD-ROM. The fee for UCC documents reproduced on CD-ROM is pursuant to §9.525(d), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

Data from the information management system.

Daily Filing Update/Replacement. The fee for an update/replacement is pursuant to §405.018 and §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

Master Unload. The fee for a bulk data extract is pursuant to §405.018 and §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

Format. Extracts from the UCC information management system are available in formats pursuant to §405.018 and §405.031(c) - (d), Texas Government Code, §552.261, Texas Government Code, and §71.8 of this title.

SOSDirect on-line services. The fee for a UCC search by debtor name, secured party name, or financing statement number is pursuant to §405.018, Texas Government Code and §71.8 of this title. The fee for a UCC search through EDI is pursuant to §405.018, Texas Government Code and §71.8 of this title.

§95.117.New Practices and Technologies.

The filing officer is authorized to adopt practices and procedures to accomplish receipt, processing, maintenance, retrieval and transmission of, and remote access to, Article 9 filing data by means of electronic, voice, optical and/or other technologies, and, without limiting the foregoing, to maintain and operate, in addition to or in lieu of a paper-based system, a non-paper-based Article 9 filing system utilizing any of such technologies. In developing and utilizing technologies and practices, the filing officer shall, to the greatest extent feasible, take into account compatibility and consistency with, and whenever possible be uniform with, technologies, practices, policies and regulations adopted in connection with Article 9 filing systems in other states.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103102

For further information, please call: (512) 463-5701

Subchapter B. ACCEPTANCE AND REFUSAL OF DOCUMENTS

1 TAC §§95.200 - 95.207

No other statutes, articles or codes are affected by this proposal.

§95.200.Policy Statement.

The duties and responsibilities of the filing officer with respect to the administration of the UCC are ministerial. In accepting for filing or refusing to file a UCC document pursuant to these rules, the filing officer does none of the following:

Determine the legal sufficiency or insufficiency of a document;

Determine that a security interest in collateral exists or does not exist;

Determine that information in the document is correct or incorrect, in whole or in part; or

Create a presumption that information in the document is correct or incorrect, in whole or in part.

§95.201.Duty to File.

Provided that there is no ground to refuse acceptance of the document under §95.202 of this title, a UCC document is filed upon receipt by the filing officer with the filing fee and the filing officer shall assign a file number to the UCC document and index it in the information management system.

§95.202.Grounds for Refusal of UCC Document.

The following grounds are the sole grounds for the filing officer's refusal to accept a UCC document for filing. As used herein, the term "legible" is not limited to refer only to written expressions on paper: it requires a machine-readable transmission for electronic transmissions and an otherwise readily decipherable transmission in other cases.

Debtor name and address. An initial financing statement or an amendment that purports to add a debtor shall be refused if the document fails to include a legible debtor name and address for a debtor, in the case of an initial financing statement, or for the debtor purporting to be added in the case of such an amendment. If the document contains more than one debtor name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings, and provide a notice to the remitter containing the file number of the document, identification of the debtor name(s) that was (were) indexed, and a statement that debtors with illegible or missing names or addresses were not indexed.

Additional debtor identification. An initial financing statement or an amendment adding one or more debtors shall be refused if the document fails to identify whether each named debtor (or each added debtor in the case of such an amendment) is an individual or an organization, if the last name of each individual debtor is not identified, or if, for each debtor identified as an organization, the document does not include in legible form the organization's type, state of organization and organization number (if it has one) or a statement that it does not have one.

Secured party name and address. An initial financing statement, an amendment purporting to add a secured party of record, or an assignment, shall be refused if the document fails to include a legible secured party (or assignee in the case of an assignment) name and address. If the document contains more than one secured party (or assignee) name or address and some names or addresses are missing or illegible, the filing officer shall refuse the UCC document.

Lack of identification of initial financing statement. A UCC document other than an initial financing statement shall be refused if the document does not provide a file number of a financing statement in the UCC information management system that has not lapsed.

Identifying information. A UCC document that does not identify itself as an amendment or identify an initial financing statement to which it relates, as required by §§9.512, 9.514, or 9.518, Texas Business and Commerce Code, is an initial financing statement.

Timeliness of continuation. A continuation shall be refused if it is not received during the six month period concluding on the day upon which the related financing statement would lapse.

First day permitted. The first day on which a continuation may be filed is the date of the month corresponding to the date upon which the financing statement would lapse, six months preceding the month in which the financing statement would lapse. If there is no such corresponding date during the sixth month preceding the month in which the financing statement would lapse, the first day on which a continuation may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse, although filing by certain means may not be possible on such date if the filing office is not open on such date.

Last day permitted. The last day on which a continuation may be filed is the date upon which the financing statement lapses.

Fee. A document shall be refused if the document is accompanied by less than the full filing fee tendered by a method described in §95.113 of this title.

Means of communication. UCC documents communicated to the filing office by a means of communication not authorized by the filing officer for the communication of UCC documents shall be refused.

(9)

EDI refusal. UCC documents communicated by EDI may be refused as provided in §95.356 of this title for reasons not applicable to other communications methods.

§95.203.Grounds not Warranting Refusal.

The sole grounds for the filing officer's refusal to accept a UCC document for filing are enumerated in §95.202 of this title. The following are examples of defects that do not constitute grounds for refusal to accept a document. They are not a comprehensive enumeration of defects outside the scope of permitted grounds for refusal to accept a UCC document for filing.

Errors. The UCC document contains or appears to contain a misspelling or other apparently erroneous information.

Incorrect names.

The UCC document appears to identify a debtor incorrectly.

The UCC document appears to identify a secured party or a secured party of record incorrectly.

Extraneous information. The UCC document contains additional or extraneous information of any kind.

Insufficient information. The UCC document contains less than the information required by Article 9 of the UCC, provided that the document contains the information required in §95.202(1) - (5) of this title.

Collateral description. The UCC document incorrectly identifies collateral, or contains an illegible or unintelligible description of collateral, or appears to contain no such description.

Excessive fee. The document is accompanied by funds in excess of the full filing fee.

§95.204.Procedure Upon Refusal.

If the filing officer finds grounds under §95.202 of this title to refuse acceptance of a UCC document, the filing officer shall return the document, if written, to the remitter and may refund the filing fee. The filing office shall send a notice that contains the date and time the document would have been filed had it been accepted for filing (unless such date and time are stamped on the document), and a brief description of the reason for refusal to accept the document under §95.202 of this title. The notice shall be sent to the secured party or the remitter as provided in §95.401(c)(2) of this title no later than the second business day after the filing office receives the document. The refund may be delivered with the notice or under separate cover.

§95.205.Acknowledgment.

At the request of a filer or remitter who files a paper or paper-based UCC document, the filing officer shall either

send to said filer or remitter an image of the record of the UCC document showing the file number assigned to it and the date and time of filing or,

if such filer or remitter provides a copy of such UCC document, note the file number and the date and time of filing on the copy and deliver or send it to said filer or remitter. For UCC documents not filed in paper or paper-based form the filing officer shall communicate to the filer or remitter the information in the filed document, the file number assigned to it and the date and time of filing.

§95.206.Other Notices.

Nothing in these rules prevents a filing officer from communicating to a filer or a remitter that the filing officer noticed apparent potential defects in a UCC document, whether or not it was filed or refused for filing. However, the filing office is under no obligation to do so and may not, in fact, have the resources to do so or to identify such defects. THE RESPONSIBILITY FOR THE LEGAL EFFECTIVENESS OF FILING RESTS WITH FILERS AND REMITTERS AND THE FILING OFFICE BEARS NO RESPONSIBILITY FOR SUCH EFFECTIVENESS.

§95.207.Refusal Errors.

If a secured party or a remitter demonstrates to the satisfaction of the filing officer that a UCC document that was refused for filing should not have been refused under §95.202 of this title, the filing officer will file the UCC document as provided in these rules with a filing date and time assigned when such filing occurs. The filing officer will also file a statement (and such demonstration of error shall constitute the secured party's authorization to do so) that states that the effective date and time of filing is the date and time the UCC document was originally tendered for filing, and sets forth such date and time.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103103

For further information, please call: (512) 463-5701

Subchapter C. UCC INFORMATION MANAGEMENT SYSTEM

1 TAC §§95.300 - 95.312

No other statutes, articles or codes are affected by this proposal.

§95.300.Policy Statement.

The filing officer uses an information management system to store, index, and retrieve information relating to financing statements. The information management system includes an index of the names of debtors named on financing statements which have not lapsed. The rules in this subchapter describe the UCC information management system.

§95.301.Primary Data Elements.

The primary data elements used in the UCC information management system are the following.

Identification numbers.

Each initial financing statement is identified by its file number as described in §95.101(5) of this title. Identification of the initial financing statement is stamped on written UCC documents or otherwise permanently associated with the record maintained for UCC documents in the UCC information management system. A record is created in the information management system for each initial financing statement and all information comprising such record is maintained in such system. Such record is identified by the same information assigned to the initial financing statement.

A UCC document other than an initial financing statement is identified by a unique file number assigned by the filing officer. In the information management system, records of all UCC documents other than initial financing statements are linked to the record of their related initial financing statement.

Type of document. The type of UCC document from which data is transferred is identified in the information management system from information supplied by the remitter.

Filing date and filing time. The filing date and filing time of UCC documents are stored in the information management system. Calculation of the lapse date of an initial financing statement is based upon the filing date.

Identification of parties. The names and addresses of debtors and secured parties are transferred from UCC documents to the UCC information management system using one or more data entry or transmittal techniques.

Status of financing statement. In the information management system, each financing statement has a status of active or lapsed.

Page count. The total number of pages in a UCC document is maintained in the information management system.

Lapse indicator. An indicator is maintained by which the information management system identifies whether or not a financing statement will lapse and, if it does, when it will lapse. The lapse date is determined as provided in §95.404 of this title.

§95.302.Names of Debtors Who Are Individuals.

For the purpose of this rule, "individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate. This rule applies to the name of a debtor or a secured party on a UCC document who is an individual.

Individual name fields. The names of individuals are stored in files that include only the names of individuals, and not the names of organizations. Separate data entry fields are established for first (given), middle (given), and last names (surnames or family names) of individuals. A filer should place the name of a debtor with a single name (e.g., "Cher") in the last name field. The filing officer assumes no responsibility for the accurate designation of the components of a name but will accurately enter the data in accordance with the filer's designations.

Titles and prefixes before names. Titles and prefixes, such as "doctor," "reverend," "Mr.," and "Ms.," should not be entered in the UCC information management system. However, as provided in §95.407 of this title, when a UCC document is submitted with designated name fields, the data will be entered in the UCC information management system exactly as it appears.

Titles and suffixes after names. Titles or indications of status such as "M.D." and "esquire" are not part of an individual's name and should not be provided by filers in UCC documents. Suffixes that indicate which individual is being named, such as "senior," "junior," "I," "II," and "III," are appropriate. In either case, as provided in §95.407 of this title, they will be entered into the information management system exactly as received.

Truncation - individual names. Personal name fields in the UCC database are fixed in length. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field. The length of data entry name fields are as follows.

First name: 50 characters.

Middle name: 50 characters.

Last name: 50 characters.

§95.303.Names of Debtors That Are Organizations.

Suffix: 6 characters.

This rule applies to the name of an organization who is a debtor or a secured party on a UCC document.

Single field. The names of organizations are stored in files that includes only the names of organizations and not the names of individuals. A single field is used to store an organization name.

Truncation - organization names. The organization name field in the UCC database is fixed in length. The maximum length is 300 characters. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field.

§95.304.Estates.

Estates are treated as if the decedent were the debtor under §95.302 of this title.

§95.305.Trusts.

If the trust is named in its organic document(s), its full legal name, as set forth in such document(s), is used. Such trusts are treated as organizations. If the trust is not so named, the name of the settlor is used. If a settlor is indicated to be an organization, the name is treated as an organization name. If the settlor is an individual, the name is treated as an individual name. A UCC document that uses a settlor's name should include other information provided by the filer to distinguish the debtor trust from other trusts having the same settlor and all financing statements filed against trusts or trustees acting with respect to property held in trust should indicate the nature of the debtor. If this is done in, or as part of, the name of the debtor, it will be entered as if it were a part of the name under §95.407 and §95.408 of this title.

§95.306.Initial Financing Statement.

Upon the filing of an initial financing statement the status of the parties and the status of the financing statement shall be as follows.

Status of secured party. Each secured party named on an initial financing statement shall be a secured party of record, except that if the UCC document names an assignee, the secured party/assignor shall not be a secured party of record and the secured party/assignee shall be a secured party of record.

Status of debtor. The status of a debtor named on the document shall be active and shall continue as active until one year after the financing statement lapses.

Status of financing statement. The status of the financing statement shall be active. A lapse date shall be calculated, five years from the file date, unless the initial financing statement indicates that it is filed with respect to a public-financing transaction or a manufactured-home transaction, in which case the lapse date shall be thirty years from the file date, or if the initial financing statement indicates that it is filed against a transmitting utility, in which case there shall be no lapse date. A financing statement remains active until one year after it lapses, or if it is indicated to be filed against a transmitting utility, until one year after it is terminated with respect to all secured parties of record.

§95.307.Amendment.

Upon the filing of an amendment the status of the parties and the status of the financing statement shall be as follows.

Status of secured party and debtor. An amendment shall affect the status of its debtor(s) and secured party(ies) as follows:

Collateral amendment or address change. An amendment that amends only the collateral description or one or more addresses has no effect upon the status of any debtor or secured party. If an amendment is authorized by less than all of the secured parties (or, in the case of an amendment that adds collateral, less than all of the debtors), the amendment affects only the interests of each authorizing secured party (or debtor).

Debtor name change. An amendment that changes a debtor's name has no effect on the status of any debtor or secured party, except that the related initial financing statement and all UCC documents that include an identification of such initial financing statement shall be cross-indexed in the UCC information management system so that a search under either the debtor's old name or the debtor's new name will reveal such initial financing statement and such related UCC documents. Such an amendment affects only the rights of its authorizing secured party(ies).

Secured party name change. An amendment that changes the name of a secured party has no effect on the status of any debtor or any secured party, but the new name is added to the index as if it were a new secured party of record.

Addition of a debtor. An amendment that adds a new debtor name has no effect upon the status of any party to the financing statement, except the new debtor name shall be added as a new debtor on the financing statement. The addition shall affect only the rights of the secured party(ies) authorizing the amendment.

(E)

Addition of a secured party. An amendment that adds a new secured party shall not affect the status of any party to the financing statement, except that the new secured party name shall be added as a new secured party on the financing statement.

(F)

Deletion of a debtor. An amendment that deletes a debtor has no effect on the status of any party to the financing statement, even if the amendment purports to delete all debtors.

(G)

Deletion of a secured party. An amendment that deletes a secured party of record has no effect on the status of any party to the financing statement, even if the amendment purports to delete all secured parties of record.

Status of financing statement. An amendment shall have no effect upon the status of the financing statement, except that a continuation may extend the period of effectiveness of a financing statement.

§95.308.Assignment of Powers of Secured Party of Record.

Status of the parties. An assignment shall have no effect on the status of the parties to the financing statement, except that each assignee named in the assignment shall become a secured party of record.

Status of financing statement. An assignment shall have no effect upon the status of the financing statement.

§95.309.Continuation Statement.

Continuation of lapse date. Upon the timely filing of one or more continuations by any secured party(ies) of record, the lapse date of the financing statement shall be postponed for five years.

Status of parties. The filing of a continuation statement shall have no effect upon the status of any party to the financing statement.

Status of financing statement. Upon the filing of a continuation statement, the status of the financing statement remains active.

§95.310.Termination Statement.

Status of parties. The filing of a termination statement shall have no effect upon the status of any party to the financing statement.

Status of financing statement. A termination statement shall have no effect upon the status of the financing statement and the financing statement shall remain active in the information management system until one year after it lapses, unless the termination statement relates to a financing statement that indicates it is filed against a transmitting utility, in which case the financing statement will become inactive one year after it is terminated with respect to all secured parties of record.

§95.311.Correction Statement.

Status of parties. The filing of a correction statement shall have no effect upon the status of any party to the financing statement.

Status of financing statement. A correction statement shall have no effect upon the status of the financing statement.

§95.312.Procedure Upon Lapse.

If there is no timely filing of a continuation statement with respect to a financing statement, the financing statement lapses on its lapse date but no action is then taken by the filing office. On the first anniversary of such lapse date, the information management system renders or is caused to render the financing statement inactive and the financing statement will no longer be made available to a searcher unless inactive statements are requested by the searcher and the financing statement is still retrievable by the information management system.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103104

For further information, please call: (512) 463-5701

Subchapter D. EDI DOCUMENTS

1 TAC §§95.350 - 95.358

No other statutes, articles or codes are affected by this proposal.

§95.350.Definitions.

For the purpose of rules relating to the electronic data interchange of documents, the following terms shall have the meaning provided in this rule, unless the context otherwise requires.

"EDI" means the electronic data interchange of UCC documents, UCC search requests and related responses.

"EDI document" means a UCC document transmitted from a remitter to the filing officer by EDI techniques authorized under this rule.

§95.351.EDI Authorized.

A remitter may be authorized for EDI upon the written authorization of the filing officer. The filing officer shall authorize a remitter to engage in EDI if:

the remitter holds an account for the billing of fees by the filing officer;

the remitter has entered into a trading partner agreement, in form and substance satisfactory to the filing officer, with the filing office; and

the filing officer determines, after appropriate testing of transmissions in accordance with the filing officer's specifications, that the remitter is capable of transmitting EDI documents in a manner that permits the filing officer to receive, index, and retrieve the EDI documents.

The filing officer may suspend or revoke the authorization when, in the filing officer's sole discretion, it is determined that a remitter's transmissions are incompatible with the filing officer's EDI system. A request to be authorized to transmit EDI documents shall be in writing and delivered to the filing officer. Upon receipt of a request for authorization, the filing officer shall provide the remitter with necessary information on the record layout of the transmission, including record length, format, network address for transmission, and other necessary specifications.

§95.352.ANSI Standard Adopted.

ANSI X12 transaction set 154, as adopted by the American National Standards Institute and in effect from time to time, is adopted in this state as the format for electronic transmission of UCC documents, although the filing officer shall, periodically and at the request of an authorized EDI remitter, identify which versions and releases of ANSI X12 154 are then in use by and acceptable to the filing office.

§95.353.Implementation Guide.

The filing office publishes an implementation guide that prescribes in further detail the use of ANSI X12 154 in the UCC filing system. The guide is available upon request made in writing to the filing office at its mailing address.

The guide identifies the version(s) or release(s) of ANSI X12 154 currently in use by the filing office.

The guide identifies the types of UCC documents and related responses that can currently be transmitted through EDI.

The guide prescribes the manner of transmission of all information contained in a UCC document and any other information required for the filing office to fulfill its responsibilities under the UCC and these rules, including identification of UCC documents, information necessary to collect fees, identification of debtors and secured parties, description of collateral and the authentication of UCC documents.

The guide may be amended from time to time. Notice of amendments will be provided to each remitter authorized to transmit EDI documents to the filing office not less than 30 days prior to the effectiveness of the relevant amendment(s).

§95.354.Document Types.

An EDI document shall be identified as to type by the transmission of the appropriate identifier required in the implementation guide referred to in §95.353 of this title. The date elements of the EDI filing will be mapped to a TIF image of the approved form(s) as set forth in §95.108 of this title. The filing officer, in responding to a request for a paper copy of an EDI document, shall print an image of the financing statement with the full text.

§95.355.Identification of Secured Party.

When an EDI document requires the name of a secured party, the name of a secured party of record, or the address of a secured party, the remitter shall transmit to the filing officer a secured party identification number assigned by the filing officer if such a number is assigned. The filing officer, in responding to a request for a paper copy of an EDI document, shall print the full name and address of the secured party corresponding to the identification number. A list of secured parties identified by the filing officer pursuant to this rule is available from the filing office.

§95.356.Refusal of EDI Document.

A record transmitted to the filing officer that is not machine-readable, has been refused under §95.202 of this title, or does not contain the information required by the implementation guide referred to in §95.353 of this title in an acceptable format shall be refused. The filing officer shall provide regularly scheduled (not less frequently than daily) electronic notices to the relevant remitter containing identification of EDI documents refused and appropriate error codes or explanations for the refusal as provided in §95.205 of this title when possible. However, records that cannot be read because they are garbled or are in improperly structured data packets, or which are received from persons not authorized for EDI by the filing office will not receive a refusal response. Readable transmissions from authorized transmitters will generate electronic confirmation of acceptance or rejection.

§95.357.Acceptance and Archives.

Upon acceptance of an EDI document for filing, a report shall automatically be generated which shall contain all of the information related to the document including all information transmitted by the remitter for inclusion in the document as prescribed by the implementation guide referred to in §95.353 of this title. The information contained in the report shall promptly be rendered and stored in a record. The filing officer shall provide regularly scheduled (not less frequently than daily) electronic notices to remitters of accepted EDI documents to confirm such acceptance and the creation of such record.

§95.358.EDI UCC Search Requests.

UCC search requests may be submitted electronically by persons authorized to submit EDI documents in the manner set forth in the implementation guide referred to in §95.353 of this title. Unless otherwise specified in said implementation guide, accepted requests will generate searches conducted under the same search criteria applicable to search requests not submitted electronically.

Electronic search requests may be submitted only by persons who are authorized to transmit EDI documents pursuant to §95.351 of this title and who have entered into arrangements acceptable to the filing officer for the payment of search and copy fees.

Responses to electronic search requests will be made available electronically as soon as practicable, in a manner to be specified in the implementation guide referred to in §95.353 of this title. Such responses may, for a time, be limited to a search report with copies of reported documents being made available by non-electronic means. Until such time as electronic responses are available in any form, responses to electronic search requests will be generated and transmitted in the same manner and by the same means as responses to non-electronic search requests.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103105

For further information, please call: (512) 463-5701

Subchapter E. DIRECT ON-LINE (SOSDIRECT) DATA ENTRY PROCEDURES

1 TAC §§95.370 - 95.372

No other statutes, articles or codes are affected by this proposal.

§95.370.Definitions.

For the purpose of rules relating to the direct on-line access of documents, the following terms shall have the meaning provided in this rule, unless the context otherwise requires.

"SOSDirect" means the electronic data interchange of UCC documents, UCC search requests and related responses.

"SOSDirect document" means a UCC document transmitted from a submitter to the filing officer by on-line techniques authorized under this rule.

"Subscriber" means a regular user of SOSDirect services which provides a subscriber with document filing as well as search request functionality.

"Isolated user" means a non-regular user of SOSDirect services which provides search request functionality.

"Subscription agreement" means the completed agreement for either a subscriber or isolated user transmitting direct on-line UCC documents to the filing officer.

§95.371.Document Filing Procedures.

A submitter may access SOSDirect on-line services at the agency SOSDirect on-line access web site.

A submitter may be authorized for SOSDirect on-line access as a subscriber upon completion of a subscription agreement as described on the agency SOSDirect on-line access web site.

A submitter may use the methods of payment described on the agency SOSDirect on-line access web site.

Document Indexing. A submitter may index a document into the information management system by following the indexing procedures in the manner set forth in §95.407 and §§95.410 - 95.413 of this title.

Filing Date. The filing date of a UCC document is the date the UCC document is received as described in §95.402 of this title.

(d)

Filing Time. The filing time of a UCC document is the time as described in §95.106(5) of this title.

§95.372.Search Request Procedures.

A submitter may access SOSDirect on-line services at the agency SOSDirect on-line access web site.

A submitter may be authorized for SOSDirect on-line access as a subscriber or an isolated user upon completion of a subscription agreement as described on the agency SOSDirect on-line access web site.

A submitter may use the methods of payments described on the agency SOSDirect on-line access web site.

Responses to electronic search requests will be made available electronically as soon as practicable. Such responses may, for a time, be limited to a search report with copies of reported documents being made available by non-electronic means. Until such time as electronic responses are available in any form, responses to electronic search requests will be generated and transmitted in the same manner and by the same means as responses to non-electronic search requests.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103106

For further information, please call: (512) 463-5701

Subchapter F. FILING AND DATA ENTRY PROCEDURES

1 TAC §§95.400 - 95.417

No other statutes, articles or codes are affected by this proposal.

§95.400.Policy Statement.

This subchapter contains rules describing the filing procedures of the filing officer upon and after receipt of a UCC document. It is the policy of the filing officer to file promptly a document that conforms to these rules. Except as provided in these rules, data are transferred from a UCC document to the information management system exactly as the data are set forth in the document. Personnel who create reports in response to search requests type search criteria exactly as set forth on the search request. No effort is made to detect or correct errors of any kind.

§95.401.Document Indexing and Other Procedures before Archiving.

Date and time stamp. The date and time of receipt are noted on the document or otherwise permanently associated with the record maintained for a UCC document in the UCC information management system at the earliest possible time.

Cash management. Transactions necessary to payment of the filing fee are performed.

Document review. The filing office determines whether a ground exists to refuse the document under §95.202 of this title.

File stamp. If there is no ground for refusal of the document, the document is stamped or deemed filed and a unique identification number and the filing date and filing time is applied to the document or permanently associated with the record of the document maintained in the UCC information management system. The sequence of the identification number is not an indication of the order in which the document was received.

Correspondence. If there is a ground for refusal of the document, notification of refusal to accept the document is prepared as provided in §95.205 of this title. If there is no ground for refusal of the document, an acknowledgment of filing is prepared as provided in §95.206 of this title. If the UCC document was tendered in person notice of refusal or acknowledgment of the filing is given to the remitter by personal delivery. If the UCC document was tendered by EDI transmission or on-line access, such notice or acknowledgment is transmitted to the remitter by EDI transmission or on-line response by transmitting an identification known to the remitter of the UCC document filed as well as the information required by §95.205 or §95.206 of this title. Acknowledgment of filing or notice of refusal of a UCC document tendered by means other than personal delivery, EDI transmission or on-line transmission is sent to the secured party (or the first secured party if there are more than one) named on the UCC document or to the remitter if the remitter so requests by regular mail or by delivery service if the remitter provides a prepaid waybill or access to the remitter's account with the delivery service.

(d)

Data entry. Data entry and indexing functions are performed as described in this subchapter.

§95.402.Filing Date.

The filing date of a UCC document is the date the UCC document is received with the proper filing fee if the filing office is open to the public on that date or, if the filing office is not so open on that date, the filing date is the next date the filing office is so open, except that, in each case, UCC documents excluding electronically transmitted documents received after 5:00 PM CT shall be deemed received on the following day. The filing officer may perform any duty relating to the document on the filing date or on a date after filing date.

§95.403.Filing Time.

The filing time of a UCC document is determined as provided in §95.106 of this title.

§95.404.Lapse Date and Time.

A lapse date is calculated for each initial financing statement (unless the debtor is indicated to be a transmitting utility). The lapse date is the same date of the same month as the filing date in the fifth year after the filing date or relevant subsequent fifth anniversary thereof if timely continuation statement is filed, but if the initial financing statement indicates that it is filed with respect to a public-finance transaction or a manufactured-home transaction, the lapse date is the same date of the same month as the filing date in the thirtieth year after the filing date. The lapse takes effect at midnight at the end of the lapse date. The relevant anniversary for a February 29 filing date shall be the March 1 in the fifth year following the year of the filing date. If the last day of any period is a Saturday, Sunday, or legal holiday, the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday in accordance with §311.104(b), Texas Government Code.

§95.405.Errors of the Filing Officer.

The filing office may correct the errors of filing officer personnel in the UCC information management system at any time. If the correction is made after the filing officer has issued a certification date that includes the filing date of a corrected document, the filing officer shall proceed as follows. A record relating to the relevant initial financing statement will be placed in the UCC information management system stating the date of the correction and explaining the nature of the corrective action taken. The record shall be preserved for so long as the record of the initial financing statement is preserved in the UCC information management system.

§95.406.Errors Other Than Filing Office Errors.

An error by a filer is the responsibility of such filer. It can be corrected by filing an amendment or it can be disclosed by a correction statement.

§95.407.Data Entry of Names--Designated Fields.

A filing should designate whether a name is a name of an individual or an organization and, if an individual, also designates the first, middle and last names and any suffix. When this is done, the following rules shall apply.

Organization names. Organization names are entered into the UCC information management system exactly as set forth in the UCC document, even if it appears that multiple names are set forth in the document or if it appears that the name of an individual has been included in the field designated for an organization name.

Individual names. On a form that designates separate fields for first, middle, last names and any suffix, the filing officer enters the names into the first, middle, and last name and suffix fields in the UCC information management system exactly as set forth on the form.

Designated fields encouraged. The filing office encourages the use of forms that designate separate fields for individual and organization names and separate fields for first, middle, and last names and any suffix. Such forms diminish the possibility of filing office error and help assure that filers' expectations are met. However, filers should be aware that the inclusion of names in an incorrect field or failures to transmit names accurately to the filing office may cause filings to be ineffective. All documents submitted through direct data entry or through EDI will be required to use designated name fields.

§95.408.Data Entry of Names--No Designated Fields.

A UCC document that is an initial financing statement or an amendment that adds a debtor to a financing statement and that fails to specify whether the debtor is an individual or an organization should be refused by the filing office. If it is accepted for filing in error, the following rules shall apply.

Identification of organizations. When not set forth in a field designated for individual names, a name is treated as an organization name if it contains words or abbreviations that indicate status such as the following and similar words or abbreviations in foreign languages: association, church, college, company, co., corp., corporation, inc., limited, ltd., club, foundation, fund, L.L.C., limited liability company, institute, society, union, syndicate, GmBH, S.A. de C.V., limited partnership, L.P., limited liability partnership, L.L.P., trust, business trust, co-op, cooperative and other designations established by statutes to indicate a statutory organization. In cases where organization or individual status is not designated by the filer and is not clear, the filing officer will use their own judgment.

Identification of individuals. A name is entered as the name of an individual and not the name of an organization when the name is followed by a title substantially similar to one of the following titles, or the equivalent of one of the following titles in a foreign language: proprietor, sole proprietor, proprietorship, sole proprietorship, partner, general partner, president, vice president, secretary, treasurer, M.D., O.D., D.D.S., attorney at law, Esq., accountant, CPA. In such cases, the title is not entered.

Individual and organization names on a single line. Where it is apparent that the name of an individual and the name of an organization are stated on a single line and not in a designated individual name field, the name of the individual and the name of the organization shall be entered as two separate debtors, one as an individual and one as an organization. Additional filing fees for the additional debtor name(s) may be required.

Individual names. The failure to designate the last name of an individual debtor in an initial financing statement or an amendment adding such debtor to a financing statement should cause a filing to be refused. If the filing is accepted in error, or if only the last name is designated, the following data entry rules apply.

Freestanding initials. An initial in the first position of the name is treated as a first name. An initial in the second position of the name is treated as a middle name.

Combined initials and names. An initial and a name to which the initial apparently corresponds is entered into one name field only (e.g., "D. (David)" in the name "John D. (David) Rockefeller" is entered as "John" (first name); "D. (David)" (middle name); "Rockefeller" (last name)) .

Multiple individual names on a single line. Two individual names contained in a single line are entered as two, different debtors (e.g., the debtor name "John and Mary Smith" is entered as two debtors: "John Smith", and "Mary Smith") .

One word names. A one word name is entered as a last name (e.g. "Cher" is treated as a last name) .

(E)

Nicknames. A nickname is entered in the name field together with the name preceding the nickname, or if none, then as the first name (e.g., "William (Bill) Jones") .

§95.409.Verification of Data Entry.

The filing officer uses the following procedures to verify the accuracy of data entry tasks.

Double key entry is employed for data entered in the individual and organization fields when these fields pertain to the debtor.

Visual inspection of data entry changes is employed for data in the following fields.

Document identification fields.

Document type fields.

Individual and organization fields when these fields pertain to the secured party.

§95.410.Initial Financing Statement.

Address fields.

A new record is opened in the UCC information management system for each initial financing statement that bears the file number of the financing statement and the date and time of filing.

The name and address of each debtor that are legibly set forth in the financing statement are entered into the record of the financing statement. Each such debtor name is included in the searchable index and is not removed until one year after the financing statement lapses. Debtor addresses might not be included in the searchable index except to the extent the filing office offers or intends to offer limited searches or limited copy requests as provided in §95.502 of this title.

The name and address of each secured party that are legibly set forth in the financing statement are entered into the record of the financing statement.

The record is indexed according to the name of the debtor(s) and is maintained for public inspection.

A lapse date is established for the financing statement, unless the initial financing statement indicates it is filed against a transmitting utility, and the lapse date is maintained as part of the record.

§95.411.Amendment.

A record is created for the amendment that bears the file number for the amendment and the date and time of filing.

The record of the amendment is associated with the record of the related initial financing statement in a manner that causes the amendment to be retrievable each time a record of the financing statement is retrieved.

The name and address of each additional debtor and secured party are entered into the UCC information management system in the record of the financing statement. Each such additional debtor name is added to the searchable index and are not removed until one year after the financing statement lapses. Debtor addresses might not be included in the searchable index except to the extent the filing office offers or intends to offer limited searches or limited copy requests as provided in §95.502 of this title.

If the amendment is a continuation, a new lapse date is established for the financing statement and maintained as part of its record.

§95.412.Correction Statement.

A record is created for the correction statement that bears the file number for the correction statement and the date and time of filing. The record of the correction statement is associated with the record of the related initial financing statement in a manner that causes the correction statement to be retrievable each time a record of the financing statement is retrieved.

§95.413.Master Filings.

The filing officer may accept for filing a single UCC document for the purpose of amending or assigning more than one financing statement. Master amendments may accomplish one or both of the following purposes: amendment to change secured party name; amendment to change secured party address. Master assignments may accomplish a full assignment from a single assignor to a single assignee.

A master filing shall consist of a written document describing the requested amendment or assignment on a form approved by the filing office, and a machine readable file furnished by the remitter and created to the filing officer's specifications containing appropriate indexing information. A copy of master filing specifications is available from the filing officer upon request. Acceptance of a master filing is conditioned upon the determination of the filing officer in the filing officer's sole discretion.

§95.414.Archives--General.

Active and lapsed filings are available by search of the debtor name or by request under a specific file number. Inactive records are available upon request by a specific file number only.

Paper UCC documents.

Storage. Documents are stored in expanding file pockets in sequential number in file boxes.

Retention. Documents are stored on site for six months after receipt. Documents are transported to State Archives for a period of two years six months prior to destruction.

Reductions.

Storage. Paper documents are reduced to digital images prior to indexing.

Retention. Digital images and previous microfilm are retained indefinitely.

Database storage. The UCC Information Management system is backed up to magnetic tape every business day.

§95.415.Archives--Data Retention.

Data in the UCC information management system relating to financing statements that have lapsed are retained for five years from the date of lapse. Such data will be maintained in the system for one year from the date of lapse. Documents are purged from the UCC Information Management system and reduced to microfiche at least every six months and will thereafter be maintained in archives.

§95.416.Archival Searches.

Computer record data for purged documents may be retrieved from microfiche of purged records.

§95.417.Notice of Bankruptcy.

The filing officer takes no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the UCC information management system. Accordingly, financing statements will lapse in the information management system as scheduled unless properly continued.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103107

For further information, please call: (512) 463-5701

Subchapter G. SEARCH REQUESTS AND REPORTS

1 TAC §§95.500 - 95.504

No other statutes, articles or codes are affected by this proposal.

§95.500.General Requirements.

The filing officer maintains for public inspection a searchable index for all records of UCC documents that provides for the retrieval of a record by the name of the debtor and by the file number of the initial financing statement to which the record relates and which associates with one another each initial financing statement and each filed UCC document relating to the initial financing statement.

§95.501.Search Requests.

Search requests shall contain the following information.

Name searched. A search request should set forth the full correct name of a debtor or the name variant desired to be searched and must specify whether the debtor is an individual or an organization. The full name of an individual shall consist of a first name, a middle name or initial, and a last name, although a search request may be submitted with no middle name or initial and, if only a single name is presented (e.g., "Cher") it will be treated as a last name. The full name of an organization shall consist of the name of the organization as stated on the articles of incorporation or other organic documents in the state or country of organization or the name variant desired to be searched. A search request will be processed using the name in the exact form it is submitted.

Requesting party. The name and address of the person to whom the search report is to be sent.

Fee. The appropriate fee shall be enclosed, payable by a method described in §95.113 of this title.

Search request with filing. If a filer requests a search at the time a UCC document is filed, by checking the box on the form set forth in §9.521, Texas Business and Commerce Code, or otherwise, the name to be searched will be the debtor name as set forth on the form, the requesting party will be the remitter of the UCC document, and the search request will be deemed to request a search that would be effective to retrieve all financing statements filed on or prior to the date the UCC document is filed.

§95.502.Optional Information.

A UCC search request may contain any of the following information.

A request that copies of documents referred to in the report be included with the report. The request may limit the copies requested by limiting them to the city of the debtor, the date of filing or the identity of the secured party(ies) of record on the financing statements located by the related search. The request may ask for copies of UCC documents identified on the primary search response.

A request that the search of a debtor name be limited to debtors in a particular city.

Instructions on the mode of delivery requested, if other than by ordinary mail, which request will be honored if the requested mode is then made available by the filing office.

§95.503.Rules Applied to Search Requests.

Search results are created by applying standardized search logic to the name presented to the filing officer by the person requesting the search. Human judgment does not play a role in determining the results of the search. The following, and only the following rules are applied to conduct searches.

There is no limit to the number of matches that may be returned in response to the search criteria.

No distinction is made between upper and lower case letters.

Punctuation marks and accents are disregarded.

Words and abbreviations at the end of a name that indicate the existence or nature of an organization as set forth in the "Ending Noise Words" list as promulgated and adopted by the International Association of Corporation Administrators as from time to time, are disregarded (e.g., company, limited, incorporated, corporation, limited partnership, limited liability company or abbreviations of the foregoing).

The word "the" at the beginning of the search criteria is disregarded.

All spaces are disregarded.

For first and middle names of individuals, initials are treated as the logical equivalent of all names that begin with such initials, and no middle name or initial is equated with all middle names and initials. For example, a search request for "John A. Smith" would cause the search to retrieve all filings against all individual debtors with "John" as the first name, "Smith" as the last name, and with the initial "A" or any name beginning with "A" in the middle name field. If the search request were for "John Smith" (first and last names with no designation in the middle name field), the search would retrieve all filings against individual debtors with "John" as the first name, "Smith" as the last name and with any name or initial or no name or initial in the middle name field.

After taking the preceding rules into account to modify the name of the debtor requested to be searched and to modify the names of debtors contained in active financing statements in the UCC information management system, the search will reveal only names of debtors that are contained in active financing statements and, as modified, exactly match the name requested, as modified.

§95.504.Search Responses.

Reports created in response to a search request shall include the following.

Filing officer. Identification of the filing officer and the certification of the filing officer required by the UCC.

Report date. The date the report was generated.

Name searched. Identification of the name searched.

Certification date. The certification date applicable to the report; i.e., the date and time through which the search is effective to reveal all relevant UCC documents filed on or prior to that date.

Identification of initial financing statements. Identification of each active initial financing statement filed on or prior to the certification date and time corresponding to the search criteria, by name of debtor, by identification number, and by file date and file time.

History of financing statement. For each initial financing statement on the report, a listing of all related UCC documents filed by the filing officer on or prior to the certification date.

Copies. Copies of all UCC documents revealed by the search and requested by the searcher.

Certificates. A report created by the filing officer in response to a request shall contain the following statement: "My acceptance for filing and custody of these documents in no way confirms, denies, or implies validity, legal effect, or enforceability of the attached documents."

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103108

For further information, please call: (512) 463-5701

Subchapter H. OTHER NOTICES OF LIENS

1 TAC §§95.600 - 95.606

No other statutes, articles or codes are affected by this proposal.

§95.600.Policy Statement.

The purpose of rules in this subchapter is to describe records of liens maintained by the filing office created pursuant to statutes other than the UCC that are treated by the filing officer in a manner substantially similar to UCC documents and are included on request with the reports described in §95.504 of this title.

§95.601.Notice of Federal Tax Lien.

Filing. Notices of federal liens such as federal tax liens, environmental, and pension will be accepted for filing as defined in Chapter 14, Texas Property Code. Notices of federal liens are filed and indexed within the UCC filing system. Notices of federal liens such as notices of discharge, release, and refiling are filed as though they were financing statement amendments and must include identification of the initial file number (as defined in §95.101(5) of this title). A separate notice or certificate form is submitted for each federal lien. A amendment to a federal lien shall be refused if the document's identification of the initial lien does not correspond to the identification number and filing date of a federal lien then active in the UCC information management system.

Where to file. Notices of liens, certificates, and other notices affecting federal tax liens or other federal liens are filed with the filing office pursuant to Chapter 14.002, Texas Property Code.

Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Chapter 14.005, Texas Property Code.

Duration. The notice is effective until a certificate of release, nonattachment, discharge, or subordination is filed with the filing office pursuant to Chapter 14.004, Texas Property Code.

Mechanics of search. Search requests and reports are conducted pursuant to Chapter 14.004, Texas Property Code and as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to Chapter 14.004, Texas Property Code and as described in §§95.111 - 95.112 of this title.

§95.602.Notice of Utility Security Instrument.

Filing. Utility security instruments and notices of name change, merger or consolidation will be accepted for filing as defined in Chapter 35, Texas Business and Commerce Code. Utility security instruments are filed and indexed within the UCC filing system. Notices of name change, merger or consolidation are filed as though they were financing statement amendments and must include identification of the initial file number (as defined in §95.101(8) of this title). A separate notice is submitted for each utility security instrument. An amendment to a utility security instrument shall be refused if the document's identification of the initial filing does not correspond to the identification number and file date of a utility security instrument then active in the UCC information management system.

Where to file. Utility security instruments, instruments supplementary or amendatory thereto, or a statement of name change, merger, or consolidation are filed with the filing office pursuant to Chapter 35, Texas Business and Commerce Code.

Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Chapter 35.05, Texas Business and Commerce Code.

Duration. The notice is effective until the interest granted as security is released by the filing of a termination signed by the secured party, and no renewal, refiling, or continuation statement shall be required to continue such effectiveness pursuant to Chapter 35.03, Texas Business and Commerce Code.

Mechanics of search. Search requests and reports are conducted pursuant to Chapter 35.06, Texas Business and Commerce Code and as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to Chapter 35.06, Texas Business and Commerce Code and as described in §§95.111 - 95.112 of this title.

§95.603.Notice of Restitution Lien.

Filing. Restitution liens will be accepted for filing as defined in Article 42.22, Texas Code of Criminal Procedure. Restitution liens are filed and indexed within the UCC filing system. A separate affidavit is submitted for each restitution lien.

Where to file. Restitution liens are filed with the filing office pursuant to Article 42.22, §7, Texas Code of Criminal Procedure.

Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Article 42.22, §7, Texas Code of Criminal Procedure.

Duration. The lien expires on the 10th anniversary of the date the lien was filed or on the date the defendant satisfies the judgment creating the lien, whichever occurs first pursuant to Article 42.22, §12, Texas Code of Criminal Procedure. The lien may be refiled before the date the lien expires and will expire on the 10th anniversary of the date the lien was refiled or that the defendant satisfies the judgment creating the lien, whichever occurs first.

Mechanics of search. Search requests and reports are conducted as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to §§95.111 - 95.112 of this title.

§95.604.Notice of Agricultural Chemical and Seed Liens.

Filing. Agricultural chemical and seed liens will be accepted for filing as defined in Chapter 128, Texas Agricultural Code. Agricultural chemical and seed liens are filed and indexed within the UCC filing system. A separate notice of claim of lien is submitted for each agricultural chemical and seed lien.

Where to file. Agricultural chemical and seed liens are filed with the filing office pursuant to Chapter 128.016, Texas Agriculture Code.

Fee. The required fee for filing and indexing each notice of claim of lien is pursuant to Chapter 128.016, Texas Agriculture Code.

Duration. The notice of claim of lien is effective until the lien is satisfied pursuant to Chapter 128.011, Texas Agriculture Code. The lien may be terminated pursuant to Chapter 128.038, Texas Agriculture Code.

Mechanics of search. Search requests and reports are conducted as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to Chapter 128.031, Texas Agriculture Code and §§95.111 - 95.112 of this title.

§95.605.Notice of Liens for Animal Feed.

Filing. Animal feed liens will be accepted for filing as defined in Chapter 188, Texas Agricultural Code. Animal feed liens are filed and indexed within the UCC filing system. A separate notice of claim of lien is submitted for each animal feed lien.

Where to file. Animal feed liens are filed with the filing office pursuant to Chapter 188.016, Texas Agriculture Code.

Fee. The required fee for filing and indexing each notice of claim of lien is pursuant to Chapter 188.016, Texas Agriculture Code.

Duration. The notice of claim of lien is effective until the lien is satisfied pursuant to Chapter 188.011, Texas Agriculture Code. The lien may be terminated pursuant to Chapter 188.038, Texas Agriculture Code.

Mechanics of search. Search requests and reports are conducted as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to Chapter 188.031, Texas Agriculture Code and §§95.111 - 95.112 of this title.

§95.606.Notice of Judicial Finding of Fact.

Filing. Notice of judicial finding of fact documents will be accepted for filing as defined in Subchapter J, §§51.901 - 51.905, Texas Government Code. Judicial finding of fact documents are filed and indexed within the UCC filing system. A separate affidavit is submitted for each judicial finding of fact.

Where to file. Judicial findings of fact are filed with the filing office pursuant to §51.905, Texas Government Code.

Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to §51.905, Texas Government Code.

Mechanics of search. Search requests and reports are conducted as described in §§95.500 - 95.504 of this title.

Fee for search. The required fee for information from the filing office is pursuant to §§95.111 - 95.112 of this title.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103109

For further information, please call: (512) 463-5701

Subchapter I. RULEMAKING PROCEDURE

1 TAC §§95.700 - §95.703

No other statutes, articles or codes are affected by this proposal.

§95.700.Policy Statement.

When taking action affecting the rights of the public, the filing officer shall, in addition to other requirements imposed by the constitution or by statute, do all of the following.

The filing officer shall adopt rules describing the mission of the filing office, describing the general course and method of operations, and describing the methods by which the public may obtain information or make submissions or requests.

The filing officer shall adopt rules of practice describing the nature and requirements of all formal and informal procedures available to the public, including a description of forms that may be used to file UCC documents and to request UCC searches.

The filing officer shall make available for public inspection all rules, and make available for public inspection and index by subject, all other written statements of law or policy, or interpretations formulated, adopted or used in the administration of the UCC.

§95.701.Procedure for Adoption of Rules.

Prior to the adoption, amendment, or repeal of a rule, the filing officer shall comply with the Administrative Procedure Act, Chapter 2001, Texas Government Code.

§95.702.Authority to Adopt Rules.

Rules on the administration of the UCC are adopted pursuant to §9.526, Texas Business and Commerce Code.

§95.703.Implementation.

Rules on the administration of the UCC are intended to implement Chapter 9, Subchapter E. Filing, Texas Business and Commerce Code.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103110

For further information, please call: (512) 463-5701

Chapter 96. ELECTRIC UTILITY TRANSITION PROPERTY NOTICE FILINGS

The Office of the Secretary of State proposes the repeal of §§96.1 - 96.6 A. General Provisions, §§96.20 - 96.23 B. Duties of the Filing Officer, §§96.40 - 96.44 C. Standards for Review and Indexing, §§96.60 - 96.66 D. Filings, and §§96.80 - 96.82 E. Search and Information Requests.

The purpose of the repeals is to conform to national model administrative rules promulgated by the International Association of Corporation Administrators.

Randy Moes, Director, has determined that there will be no fiscal implications to state or local government as a result of the repealed sections.

Mr. Moes also has determined that the public benefit anticipated will be clarification in matters related to filing of Electric Utility Transition Property Notice Filings documents with the Secretary of State and the submission of information requests. There will be no effect on large businesses, small businesses or micro-businesses. There will be no anticipated economic cost to individuals.

Comments on the repeals may be submitted to Randy Moes, Director, Uniform Commercial Code Section, P.O. Box 13193, Austin, Texas 78711-3193.

Subchapter A. GENERAL PROVISIONS

1 TAC §§96.1 -96.6

The repeals are proposed under §§9.401 - 9.412 Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this repeal.

§96.1.Definitions.

§96.2.Place of Filing and Filing Office Information.

§96.3.Document Delivery.

§96.4.Standard and Nonstandard Forms.

§96.5.Fees.

§96.6.Overpayment and Underpayment Policies.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103111

For further information, please call: (512) 463-5701

Subchapter B. DUTIES OF THE FILING OFFICER

1 TAC §§96.20 - 96.23

The repeals are proposed under §§9.401 - 9.412 Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this repeal.

§96.20.Policy.

§96.21.Duties of the Filing Officer.

§96.22.Forms.

§96.23.Informational Copies.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103112

For further information, please call: (512) 463-5701

Subchapter C. STANDARDS OF REVIEW AND INDEXING

1 TAC §§96.40 - 96.44

The repeals are proposed under §§9.401 - 9.412 Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this repeal.

§95.40.Grounds for Refusal of a Transition Property Notice.

§96.41.Procedure upon Refusal.

§96.42.Information Required for Indexing.

§96.43.Name of Grantor or Assignor.

§96.44.Identification and Indexing of Parties.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103113

For further information, please call: (512) 463-5701

Subchapter D. FILINGS

1 TAC §§96.60 - 96.66

The repeals are proposed under §§9.401 - 9.412 Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this repeal.

§95.60.What Constitutes a Filing, Duration, and Filing Sequence.

§96.61.Transition Property Notice.

§96.62.Amendments to a Transition Property Notice.

§96.63.Assignment.

§96.64.Release or Retransfer of Interest in Transition Property.

§96.65.Termination Notice.

§96.66.Minor Errors.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103120

For further information, please call: (512) 463-5701

Subchapter E. SEARCH AND INFORMATION REQUESTS

1 TAC §§96.80 - 96.82

The repeals are proposed under §§9.401 - 9.412 Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this repeal.

§96.80.Search Requests.

§96.81.Furnishing Certificates and Copies.

§96.82.Rules Applied to Search Requests.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 4, 2001.

TRD-200103114

For further information, please call: (512) 463-5701

Chapter 96. ELECTRIC UTILITY TRANSITION PROPERTY NOTICE FILINGS

The Office of the Secretary of State proposes new §§96.1 - 96.6 A. General Provisions, §§96.20 - 96.23 B. Duties of the Filing Officer, §§96.40 - 96.44 C. Standards of Review and Indexing, §§96.60 - 96.66 D. Filings, and §§96.80 - 96.82 E. Search and Information Requests.

The purpose of the adoption of new Electric Utility Transition Property Notice Filings rules is to conform to national model administrative rules promulgated by the International Association of Corporation Administrators.

Randy Moes, Director, has determined that there will be no fiscal implications to the state or local government as a result of adopting these rules.

Mr. Moes also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated will be clarification in matters related to filing of Transition Property Notice documents with the Secretary of State and the submission of information requests. There will be no effect on large businesses, small businesses or micro-businesses. There will be no anticipated economic cost to individuals.

Comments on the proposals may be submitted to Randy Moes, Director, Uniform Commercial Code Section, P.O. Box 13193, Austin, Texas 78711-3193.

Subchapter A. GENERAL PROVISIONS

1 TAC §§96.1 - 96.6

The new sections are proposed under §§9.501 - 9.527 Texas Business and Commerce Code (effective July 1, 2001), which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code.

No other statutes, articles or codes are affected by this proposal.

§96.1.Definitions.

The following words and terms, when used in this chapter, have the following meanings, except as the context otherwise clearly requires:

"Assignee" has the meaning accorded to such term by §39.302 of the Texas Utilities Code.

"Assignor" means an electric utility or other person who transfers an interest in transition property to an assignee.