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

1. (1) Collateral amendment or address change. A statement of amendment that amends only the collateral description or one or more party's(ies) address has no effect upon the status, active or inactive, of any debtor or secured party. If a statement of amendment is authorized by less than all of the active secured parties (or, in the case of an amendment that adds collateral, less than all of the active debtors), the statement affects only the interests of each authorizing secured party (or debtor).
2. (2) Debtor name change. A statement of amendment that changes a debtor's name has no effect on the status, active or inactive, of any debtor or secured party, except that the related original financing statement and all UCC documents that include an identification of such original 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 original financing statement and such related UCC documents. Such a statement of amendment affects only the rights of its authorizing secured party(ies).
3. (3) Secured party name change. A statement of amendment that changes the name of a secured party has no effect on the status, active or inactive, of any debtor and has no effect on the status of any secured party unless the secured party whose name is being changed has authorized the statement of amendment, in which case the old name of the secured party is deleted from the UCC information management system and is replaced with the new name.
4. (4) Addition of a debtor. A statement of amendment that adds a new debtor name has no effect upon the status of any party to the amendment or the related original financing statement, except the new debtor name shall be added as a new active debtor on the financing statement. The addition shall affect only the rights of the secured party(ies) authorizing the statement of amendment.
5. (5) Addition of a secured party. A statement of amendment that adds a new secured party shall not affect the status of any party, except that the new secured party name shall be added as a new active secured party on the financing statement.
6. (6) Deletion of a debtor. A statement of amendment that deletes a debtor shall have no effect on the status, active or inactive, of any party to the financing statement.
7. (7) Deletion of a secured party. A statement of amendment that deletes a secured party shall have no effect on the status, active or inactive, of any party to the financing statement, unless it is authorized by the secured party being deleted, in which case such secured party is rendered inactive if such secured party is not the last active secured party of record. The status of the last active secured party can not be inactivated.

Source Note:The provisions of this §95.407 adopted to be effective November 1, 1998, 23 TexReg 9727.