AI-assisted research summary: The secretary of state must take several steps when a lien filing appears fraudulent, and may refuse a fraudulent filing after the attorney general determines it is fraudulent.
Sec. 405.022. FILING OR RECORDING OF FRAUDULENT DOCUMENT. (a) If the secretary of state believes in good faith that a document filed with the secretary of state to create a lien is fraudulent, the secretary of state shall: (1) request the assistance of the attorney general to determine whether the document is fraudulent before filing or recording the document; (2) request that the prospective filer provide to the secretary of state additional documentation supporting the existence of the lien, such as a contract or other document that contains the alleged debtor or obligor's signature; and (3) forward any additional documentation received to the attorney general. (b) For purposes of this section, a document or instrument is presumed to be fraudulent if the document or instrument is filed by an inmate or on behalf of an inmate. (c) A presumption under Subsection (b) may be rebutted by providing the secretary of state the original or a copy of a sworn and notarized document signed by the obligor, debtor, or owner of the property designated as collateral stating that the person entered into a security agreement with the inmate and authorized the filing of the instrument as provided by Section 9.509, Business & Commerce Code. (d) In this section: (1) "Inmate" means a person housed in a secure correctional facility. (2) "Secure correctional facility" has the meaning assigned by Section 1.07, Penal Code. (e) If a document to create a lien on real property is filed with the secretary of state by an inmate or on behalf of an inmate and a purported debtor or obligor named in the document is an employee or board member of the Texas Department of Criminal Justice who believes the document was fraudulently filed, the purported debtor or obligor may, under penalty of perjury, file an affidavit stating the impermissibility of the document with the secretary of state. The secretary of state shall make a form affidavit for use when filing an affidavit under this subsection. On acceptance of an affidavit properly filed under this subsection, the secretary of state shall: (1) request the assistance of the attorney general to determine whether the document was fraudulently filed; and (2) file a termination statement with respect to the document identified in the affidavit if the attorney general determines that the document was fraudulently filed. (f) For purposes of a request under Subsection (e), the attorney general may request the filer provide to the attorney general documentation supporting the existence of the lien, including documents described by Subsection (c). (g) Notwithstanding Section 9.520, Business & Commerce Code, the secretary of state may refuse to accept for filing a record purporting to create a lien on real property if the attorney general determines under Subsection (a) that the document submitted for filing is fraudulent. Added by Acts 2005, 79th Leg., Ch. 407 (S.B. 1589), Sec. 2, eff. September 1, 2005. Renumbered from Government Code, Section 405.021 and amended by Acts 2007, 80th Leg., R.S., Ch. 895 (H.B. 2566), Sec. 4, eff. September 1, 2007. Renumbered from Government Code, Section 405.021 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 17.001(27), eff. September 1, 2007. Amended by: Acts 2025, 89th Leg., 2nd C.S., Ch. 16 (S.B. 16), Sec. 5, eff. December 4, 2025.