OF VERIFICATION ENTITIES

1. (a) In this section, "victim of identity theft" means a person who has filed with an appropriate law enforcement agency a criminal complaint alleging commission of an offense under Section 32.51, Penal Code.

2. (b) A financial institution, in accordance with its customary procedures, shall process as forgeries checks received on the account of a victim of identity theft if the victim:

   1. (1) closes the account at the financial institution as a result of the identity theft;
   2. (2) notifies the financial institution that the identity theft is the reason for closing the account;
   3. (3) provides the financial institution with a copy of the criminal complaint described by Subsection (a); and
   4. (4) requests that the financial institution return checks with the notation "forgery."

3. (c) A victim of identity theft who requests that a financial institution return checks with the notation "forgery" as provided by Subsection (b):

   1. (1) may not assert that the financial institution is liable under Section 4.402 for wrongfully dishonoring a check returned after the victim makes the request; and

   2. (2) shall hold the financial institution harmless for acting in accordance with the victim's request.

      Redesignated from Business and Commerce Code, Section 523.003 by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.011(b), eff. September 1, 2009.

Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.