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Texas Business & Commerce Code - Section 35.02. Filing Utility Security Instruments With Secretary Of State; Perfection; Notice

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 35.02. Filing Utility Security Instruments With Secretary Of State; Perfection; Notice

§ 35.02. FILING UTILITY SECURITY INSTRUMENTS WITH 
SECRETARY OF STATE;  PERFECTION;  NOTICE.  (a) Payment of the 
statutory filing fee and deposit for filing in the office of the 
Secretary of State of a security instrument executed by a utility 
which states conspicuously on its title page:  "This Instrument 
Grants A Security Interest By A Utility" shall, subject to the 
provisions of Subsection (b) of this section
		(1)  constitute perfection of a security interest 
created by the security instrument in any personal property 
(including goods which are, or are to become, fixtures) in which a 
security interest may be perfected by filing under Chapter 9 of this 
code, located in this state, and owned by the utility when the 
security instrument was executed or to be acquired by the utility 
after execution of the security instrument;  and
		(2)  be taken and held as notice to all persons of the 
existence of such security instrument and the interest granted 
therein, as security, in any real property (or fixtures thereon, or 
to be placed thereon) located in this state and owned by the utility 
when the security instrument was executed or to be acquired by the 
utility after the execution of the security instrument;  provided 
that the security instrument shall first be proven, acknowledged or 
certified as otherwise required by law for the recording of real 
property mortgages.
	(b)  For perfection or notice to be effective as to a 
particular item of property, the filed security instrument must
		(1)  identify the property by type, character, or 
description if it is presently owned personal property (including 
fixtures);  provided that for such purposes, any description of 
personal property or real estate is sufficient whether or not it is 
specific if it reasonably identifies what is described;
		(2)  provide a description of the property if it is 
presently owned real property;  and
		(3)  state conspicuously on its title page:  "This 
Instrument Contains After-Acquired Property Provisions" if the 
property is to be acquired after the execution of the security 
instrument.
	(c)  Filing under this section satisfies any requirement of                    
		(1)  filing of the security instrument or a financing 
statement in the office of a county clerk where such would otherwise 
be necessary to perfect a security interest;  and
		(2)  recording of the security instrument in the office 
of a county clerk where such would otherwise cause the security 
instrument to be effective and valid as to all creditors and 
subsequent purchasers for valuable consideration without notice.
	(d)  The provisions in Chapter 9 of this code pertaining to 
priorities and remedies shall apply to security interests in 
personal property (including fixtures) perfected under this 
section.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1.  Amended by Acts 
1973, 63rd Leg., p. 1032, ch. 400, § 7, eff. Jan. 1, 1974.

Last modified: August 10, 2007