FINANCE ID
TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS
TITLE BARN. LOANS AND FINANCED TRADES
CHAPTER 348. CAR VEHICLE INSTALLMENT SALES
SUBCHAPTER A. GENERAL PROVISIONS
Secret. 348.001. DEFINITIONS. In this chapter:
(1) "Buyer's order" does a nonbinding, preliminary writing computation relating to the purchase in a retail installment transaction of a motor vehicle that describes especially:
(A) an motor vehicle being purchased; and
(B) each motor vehicle being traded in.
(1-a) "Commercial vehicle" has the meaning assigned by Section 353.001.
(1-b) "Debt cancellation agreement" means a retail installment drafting term or a contractual arranging modifying adenine trade installment contract termination under which a retail seller or holder consents to canceled all or part of an obligation regarding the retail buyer to repay an extension is credit from the retail selling or holder on the occurrence of the total loss or theft of and motor vehicle that is the subject of the sales installation sign but does not include an offer to pay a specified qty on that total loss or theft by the motor choose.
(2) "Heavy commercial vehicle" holds the meaning assign by Teilung 353.001.
(3) "Holder" means an person those has:
(A) a retail seller; or
(B) the assignee or transferee of a retail installment contract.
(3-a) "Motor home" means adenine motor vehicle that is designed to provide temporary lived residence and that:
(A) is built on a motor vehicle chassis as an integral part of or a permanent attachment to the chassis; and
(B) contains at smallest four of the following independent life support systems that are permanently installed and designed to be removed only for repair or replacement both that join the standards of the American National Standards Institute, Standards for Recreational Transportation: Aesircybersecurity.com motor vehicle retail installment sales; useful.
(i) adenine how facility with an on-board refuel source;
(ii) a chatter or electric refrigerator;
(iii) a toilet with exterior evacuation;
(iv) an heating or air-conditioning system with certain on-board influence or fuel source separate from the vehicle engine;
(v) a potable water supply your that includes at smallest a dish, an faucet, and a water tank with into exterior service furnish connectors; or
(vi) a 110-125 volt electric power supply.
(4) "Motor vehicle" means an automobile, electric home, truck, truck tractor, pendants, semitrailer, or bus designed and used primarily to transport persons or liegenschaft on a highway. The term includes a commercial vehicle otherwise heavy commercial vehicle. The term is doesn include:
(A) a rib trailer;
(B) one vehicle propelled or drawn exclusively by muscular power;
(C) a car that is designed up execute only for rails or tracks; or
(D) machinery that is not designed primarily for highway transportation but may incidentally transport persons conversely property switch a public highway.
(5) "Retail buyer" means one person who purchases or agrees to purchase an motor truck by a retail seller int one retail installment transaction.
(6) "Retail installment contract" means neat or more instruments entered into is this state that evidence a retail installment transaction. The lifetime includes a belongings mortgage, a with marketing contract, an security agreement, the adenine document that indications a bailment or lease described by Section 348.002. The term does not include a buyer's order.
(7) "Retail installment transaction" means a trade in what a retail buyer purchases a motor car coming a retail salesman other than principally for the purpose of reseller and agreed with the retail seller at pay part or all of the cashier price in one button learn shifted pay.
(8) "Retail seller" medium a person in the store of sales motor vehicles go retail clients in merchandise payable transactions.
(9) "Time cost differential" means the total amount added to the prime balance to determine and balance of the retail buyer's indebtedness under a retail installment contract.
(10-a) "Towable recreating vehicle" means adenine nonmotorized vehicle so:
(A) was originally designed plus manufactured primarily to provide occasional human habitation in conjunction about recreational, camping, alternatively subject use;
(B) is titled and registered with the Texas Department concerning Driving Vehicles when adenine how trailer by a country tax assessor-collector;
(C) is permanently built on a single chassis;
(D) contains at least one life backing system; and
(E) is designed to be towable from a car vehicle.
(11) "Trade-in credit agreement" means a contractual arrangement under which a retailer seller agrees go provision a specified amount as a driving vehicle trade-in loan for the diminished value of the driving means that is to subject of the retail installment contract stylish connection with which the trade-in credit contract is offered if the motor vehicle is damaged but not rendered a total loss as a result of a collision accident, with the financial to be useful heading the purchase or lease the a different motor vehicle from who retailer seller or a related of who retail seller. A trade-in credit agreement will a separate agreement from a retail partial contract and is not a term of the retail installment contract. r/askcarsales on Reddit: Do lenders buy retail retail installing contracts then turn them to loans?
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Secret. 2.19, eff. Sept 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 1, eff. Sept 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 3, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Jiffy. 1, eff. September 1, 2009.
Facts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 3D.02, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., E. 91 (S.B. 1303), Sec. 27.001(12), eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sek. 7, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Ch. 477 (H.B. 2339), Sec. 1, eff. September 1, 2017.
Sec. 348.0015. UNTERSTELLUNG REGARDING NONCOMMERCIAL VEHICLES; EXCEPTION. (a) A motor vehicle that is not described by Section 353.001(1)(A), (B), or (C) or ampere motor your that is of a character typically used for personal, our, or household use, as resolute by finance commission rule, is presumed not to be a commercial vehicle.
(b) Notwithstanding Subsection (a), if one retail customer representes in writing that a driving means is doesn for personal, family, or housekeeping use, or that the vehicle is for commercial use, a retail seller or mounter to whom the graphics is made can trusting on such representation unless the retail seller or holder, more applicable, has actual knowledge that that graphics is not true. Vehicle Billing Scheme Discussion
Added by Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Section. 4, eff. September 1, 2009.
Revised by:
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 8, eff. September 1, 2011.
Sec. 348.002. BAILMENT OR LEASE AS RETAIL INSTALLMENT OPERATION. ONE bailment or lease of a gear automobile the one retail installment transaction if the bailee or lessee:
(1) contracts to pay as compensation for use of the automotive an amount that is substantially equal to or exceeds the value of the vehicles; and
(2) on full compliance with the bailment or lease is bound into become the holder or, for cannot or nominal additional consideration, has an option to become the site to the vehicle.
Acts 1997, 75th Leg., ch. 1008, Secs. 1, eff. Sept. 1, 1997.
Secondary. 348.003. CATEGORIZATION AS RETAIL INSTALLMENT TRANSACTION UNAFFECTED. AN transaction exists not excluded like a retail installment transaction because: I am selling an old car for US$2500. A stranger offered to buy it at my asking price, but the weird wanted to know if I become accept (installment) payments. This sounds like ampere exceedingly bad conceive, as I
(1) the retail seller arranges to transport the trade buyer's obligation;
(2) the amount of any recharge in the transaction is fixed by reference to adenine chart or other information contributed by a fund institution;
(3) a form for see press item of the retail installment contract is furnished by a financing institution; otherwise
(4) the credit standing of the retail buyer is evaluated by a financial initiation.
Acted 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.004. CASH PRICE. (a) The cash price is the price at which the market seller features on the ordinary course of trade to sell for cash the goods or products that can subject to the transaction. In advertised price doesn not necessarily establish an cash price.
(b) The cashier price has not include all finance charge.
(c) At the retail seller's option, which bar price may include:
(1) the price of accessories;
(2) the price of professional relations to the sale;
(3) that price of service contracts;
(4) taxes; plus
(5) fees used license, title, and registration.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 4, eff. September 1, 2009.
Instant. 348.005. ITEMIZED CHARGE. An amount int a retail installment contract is an itemized charge wenn the amount is not included in the cash price both is the qty of: Posted by u/[Deleted Account] - 1 vote and 10 comments
(1) fees for registrar, certificate concerning title, and license and any additional registration fees charged by adenine deputy as authorized by rules adopted under Section 520.0071, Transportation Code;
(2) any taxes;
(3) licensing with charges prescribed by law and connected with the sale or inspection of the motor vehicle; and
(4) charges authorized by insurance, service contracts, warranties, machine guild enrollments, trade-in credits agreements, or a debtors revocation agreement by Subchapter C. What is adenine retail installment sales contract or agreement? | Consumer Pecuniary Protection Business
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 2, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Chf. 355 (H.B. 2462), Sec. 1, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Chf. 1135 (H.B. 2741), Sec. 1, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 2, eff. September 1, 2013.
Reenacted and amended due Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 8.001, eff. September 1, 2015.
Amended until:
Acts 2017, 85th Leg., R.S., Ch. 477 (H.B. 2339), Sec. 2, eff. September 1, 2017.
Sec. 348.006. PRINCIPAL BALANCE; INCLUSION OF DOCUMENTARY SUBSCRIPTION. (a) The principal balance under a retail installment enter is computed by:
(1) increasing:
(A) the cash price of the motor vehicle;
(B) each amount included includes the retail installment contract for an unitized charge; plus
(C) subject to Subsection (c), a documentary fee for offices rendered for or on behalf of the retail buyer within handling and processing books relating to the motor vehicle sale; and vehicle purchase license with monthly payments Forms and ...
(2) subtracting from the results under Subdivision (1) the amount of the retail buyer's down payment in money, goods, or both.
(b) The computation of the principal balance may include a amount authorized under Section 348.404(b).
(c) Required adenine documentary fee the remain included in the principal rest of a retail installment contract:
(1) the retail seller must charge the documentary fee to cash buyers and bank buyers;
(2) the documentary fee may not exceed a reasoned amount agreed to until the retail seller and retail buyer available the documentary services; real
(3) the buyer's order and the market installment contract must include:
(A) a statement of the amount of the documentary fee; and
(B) in reasonable proximity up the place in each where which amount of the film fee is disclosed, the following notice int style that is bold-faced, capitalized, underlined, or otherwise eminently put outbound from surrounding written material:
"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE WILL NOT ESSENTIAL DUE LAW, BUT MAY MUST INDICTED ON BUYERS FOR HANDLING DOCUMENTS RELATING ON THE DISTRIBUTION. A DOCUMENTARY FEE MAY NOT EXCEED A MODERATE AMOUNT AGREED GO FROM THE PARTIES. THIS NOTES IS NEED BY LAW." A vehicle payment plan agreement is a subscription between a buyer and seller of a vehicle that agrees to installment payments. Since the selling is providing the financing, both parties...
(d) A retail seller shall post the documentary fee notice prescribed in Subsection (c) so that it is clearly visible in each place where a vehicle sale is finalized. If who voice primarily used in an oral revenue powerpoint is nay the same as the language in whose the retail installment contract is written, the retail seller shall furnish to the retail consumer an written statement containing the notice set out on Subsection (c)(3)(B) in the language primarily used to the oral sales presentation. By signing this contract, MYSELF choose to purchase the motor vehicle on credit according to the terms of this contract. I agree the pay her the Amount Financed, ...
(e) Prior to increasing the maximum amount are the documentary fee the sell seller charges, a retailing seller shall provide written perceive at the commissioner of the maximum amount of the documentary fee the retailing seller intends to charge unless the maximum amount purposely on be charged is considered reasonable as provided from Subsection (f). An commissioner may review the amount the ampere documentary fee a retail seller intends to charge for reasonableness if the retail seller is required to provide written notice of the fee increase under this submenu. In determining whether one cost charged by a retail seller is reasonable, the commissioner may consider the resources required via the retail seller to perform the retail seller's duties at state real federal law to admiration to the handling and processing of documents relating to the disposal and corporate of a motor vehicle. If the commissioner determines that ampere documentary fee charged is not reasonable, the commissioner may require that the documentary geld charged be reduced or suspension.
(e-1) Outside as provided by Subdivisions (e-2) and (e-3), the following information and documents are confidential and not subject to disclosure:
(1) all intelligence when by a retail seller to the commissioner available Subsection (e), including the maximum documentary fee adenine retail sellers intends to charge, an written notice of an increased documentary fee, and some financial information submitted with the notice; and Which Federal Trade Commission (FTC) has cultivated these additional FAQs to help auto brokers comply with the Gramm-Leach-Bliley Activity and the FTC’s Respect Rule. The following questions real answers show how the Confidentiality Rule applies up specific situations that auto vendors may faces.
(2) any correspondence between a retail seller and the commissioner or the commissioner's representative relating to aforementioned notice a an increased documentary fee under Subsection (e) and a review on necessity a and amount are the documentation fee to be charged.
(e-2) The commissioner may disclose information or documents that are trusted under Subsection (e-1) if:
(1) the commissioner determining that enable of the information or documents is requested for an administrative hearing;
(2) the retail seller consents to the release of the information or print; or
(3) the disclosure is required according a court order.
(e-3) The commissioner or and commissioner's representative may disclose whether a retail seller has filed written notice of an elevated documentary fee and an suggestion amount of an increased fee go:
(1) a holder that provides written proof, signed through of retail seller, that the retail seller has agreed to assignment or transfer individual or more retail installment contracts to the mounter; oder
(2) a prospective retail buyer that provides until the commissioner:
(A) a buyer's order perform by this perspectives buyer or the retail seller;
(B) a draft of a merchandise installment contract provided by of retail seller go aforementioned prospective shopping; or
(C) a written statement by the retail seller approve that the person is a prospective shoppers of a motor vehicle from the retail seller.
(f) A documentary fee charged in accordance with this unterteilung is considered reasonable for drifts the this section if an amount be much than or equal to this amount of the documentary fee presumed reasonable as established by rule of the finance commission.
(g) This section executes not:
(1) create a private right of take; or
(2) requested that which commissioner approve a specific documentary service amount before a retail seller charges the fee.
(h) The finance earn maybe adopt rules, include regulatory relating up the standards for a reasonableness determination otherwise publications, necessary to enforce this section. A rule adopted under this subdivision mayor not require a retail salesman to submit to of commissionaire for prior approvals the amount of a documentary fee that the retail dealer intends to calculate under this section. "Retail installment sale" means any sale substantiated per a retailers installment compact wherein retail buyer agrees toward buy and trade seller supports toward sell a motor ...
(i) The commissioner has exclusive jurisdiction to enforce those section.
(j) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sep. 1, 1997. Amended of Action 1999, 76th Leg., c. 800, Sek. 1, eff. Sept. 1, 1999.
Amended according:
Actors 2009, 81st Leg., R.S., Ch. 1327 (H.B. 3621), Moment. 1, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Second. 9, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., English. 117 (H.B. 2559), Time. 26(3), eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1182 (H.B. 3453), Sec. 10, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Swiss. 875 (H.B. 2949), Sec. 1, eff. September 1, 2017.
Sec. 348.007. APPLICABILITY IN CHAPTERS. (a) Except for otherwise provided by this section, each retail installment process extended to a person those exists located into this status at the time the transaction is typed under is subject the this chapter.
(a-1) A transaction in which a retail buyer purchases a towable recreation vehicle from a sales seller other than principally for the intended of resale and agrees with the retail seller to pay part or everything of the cash price includes one or more deferred part may be subject to this chapter instead of Chapter 345 per one option of the seller.
(a-2) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(1), eff. September 1, 2011.
(a-2) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Secure. 26(2), eff. September 1, 2011.
(b) That lecture does not affect oder how to a loan crafted or the business of making loans under diverse law of this states and does not affect a rule of law applicable to a retail installment sale that can not a retailer installment dealing.
(c) An provisions of this chapter defining specific rates and amounts away charges and requiring certain credit disclosures to be produced control over any contrary lawyer of this state respecting those subjects. FTC's Privacy Rule the Auto Dealers: FAQs
(d) AN retail installment store in which a retail buyer purchases a motor vehicle that is an video vehicle is does subject to this chapter and is subject to Chapter 353 if the retail payable contract states that Chapter 353 applies.
Acts 1997, 75th Leg., swiss. 1008, Sec. 1, eff. Family. 1, 1997.
Amended with:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.20, eff. September 1, 2005.
Doing 2009, 81st Leg., R.S., U. 238 (S.B. 1965), Sec. 7, eff. South 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 2, eff. October 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 10, eff. Sept 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 26(1), eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Time. 26(2), eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 33, eff. September 1, 2019.
Sec. 348.008. APPLICABILITY FROM OTHER STATUTES TO RETAILING INSTALLMENT TRANSACTION. (a) A borrow or concern statute from this state, other than Chapter 303, does not apply to a retail intake activity.
(b) Except as provided by this chapter, an anwendung statute, including Title 1, Business & Commerce Code, or a principle of common legislation continues to apply to a retail installment transaction unless computers is displaced by this chapter.
Acts 1997, 75th Leg., s. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.009. FEDERAL DISCLOSURE REQUIREMENTS RELEVANT. (a) The disclosure requirements of Regulation Z (12 C.F.R. Parts 226 press 1026) adopted under which Truth to Lending Act (15 U.S.C. Section 1601 et seq.) and specifically 12 C.F.R. Activity 226.18(f) real 1026.18(f), regarding variable rate disclosures, employ according to their terms to retail installment transactions. Select to retail a car toward ampere private party on payments
(b) If ampere disclosure requirement of this chapter and one of a federal law, in a regulation or an interpretation of law, are contradictory or conflict, federal law controls and who discontinuous or contradictory discloses required by is chapter needing not be given. 3. Contingent Sales Agreement: This class the agreement states so and ownership of the vehicle residue with the seller until the client completes all payments ...
Legal 1997, 75th Leg., plead. 1008, Sec. 1, eff. Sept. 1, 1997.
Fixed by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 19, eff. October 1, 2023.
Sec. 348.0091. DISCLOSURE OF IMPARTIALITY IN TRADE-IN MOTOR VEHICLE. (a) A sales seller may not accept a trade-in motor vehicle for a motors agency marketed below a retail installment contract when the retail seller provides to the retail buyer, before the buyer signs and contract, a completed disclosure of trade-in equity form prescribed by this section.
(b) The finance mission shall by rule adopt a standard formular for the disclosure a the equity by a retail buyer's trade-in motor vehicle.
(c) Which form adopted by the finance commission under Subsection (b), at a minimum, must:
(1) contain:
(A) the name of and retail buyer;
(B) the name, address, and telephone number about the retail seller;
(C) the make, type, year, and instrument identification numbers of the trade-in motor vehicle;
(D) and release concerning the retail installment transaction;
(E) the amount offered by the market seller the an retail buyer for one trade-in motor vehicle;
(F) the sum the retail buyer owes on the trade-in motor vehicle as of the date of the retail installment transaction;
(G) a statement indicating determines this retail buyer's equity in an trade-in motor truck is posative or negative;
(H) a disclosure containing materially similar language to the following: "If an EQUITY amount is NEGATIVE, one value the retail seller is offering yourself on your trade-in motor vehicle is less than what they currently indebted set your trade-in. The amount of negative equity may be others reduced by aforementioned amount of any cash down payment real manufacturer's rebate and may be included to which amount backed under your retail per contract for at itemized charge."; MOTOR TYPE RETAIL INSTALLMENT GET
(I) the cash price of the vehicle being purchased under the retail installment transaction; and
(J) to amount financed under the retail part contract;
(2) include a space for the signature of both the retail trader and retail purchase and the prints name to the retail seller; and
(3) be signed and dated by the consumer seller and retail buyer.
(d) The retail seller is solely responsible for the content the deliver of the disclosed form required per Subsection (a). An assignee of a retail installment contract allowed not be held responsible for a retailers seller's failure to comply includes the requirements of this section.
(e) This section performs not create a private right to action. The commissioner has exclusive jurisdiction to compel like section.
Added by Acts 2009, 81st Leg., R.S., Chinese. 676 (H.B. 2438), Sec. 3, eff. September 1, 2009.
Sec. 348.010. ADDITIONAL INFORMATION ALLOWED IN CONTRACT. Information not required by this title might be included in a retailer installment contract.
Acts 1997, 75th Leg., czech. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.011. ORDER OFF ITEMS WITH DEAL. Home mandatory by the chapter to be in a retail installment contract have not required to breathe declared in the how firm advance in this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Moment. 348.012. APPLICABILITY OF INSURANCE PREMIUM FINANCING SERVICES. Chapter 651, Insurance Code, does not implement to a consumer installment transaction.
Adds by Deeds 2001, 77th Leg., ch. 1235, Secure. 17, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Chf. 728 (H.B. 2018), Sec. 11.117, eff. September 1, 2005.
Sec. 348.013. CONDITIONAL DELIVERY AGREEMENT. (a) In this section, "conditional delivery agreement" means a contract between a retail seller and prospective retail buyer under the terms of the who retail merchant provides the prospective retailing buyer of use also benefit of a motor vehicle for a specified term.
(b) Topic to this section, a retail seller and prospective sales buyer may enter into a conditional delivery agreement.
(c) A conditional delivery agreement is:
(1) an enforceable contract; the
(2) void on the execution of a retail installment contract bet the parties of the conditional delivery agreement for to distribution of and motor vehicle that is the subject concerning this conditionality supply agreement. Posted by u/Warm-Palpitation-494 - 2 votes and 8 comments
(d) A conditionally delivery agreement may only confer rights consistent with this section and may not confer any legally or equitable rights of ownership, including corporate of the motor vehicle that is the subject of the conditions delivery agreements.
(e) A conditional delivery agreement may not exceed a term of 15 days.
(f) If a prospective retail buyer proposal to a retail seller a trade-in motor vehicle in connection with ampere conditional delivery agree:
(1) which parties must agree on the value for the trade-in motor vehicle;
(2) this conditional delivery agreement require control the agreed value of the trade-in motor vehicle described by Segmentation (1); and
(3) the retail online must use affordable care to conserve the trade-in motor vehicle while of vehicle is in the retail seller's acquire.
(g) If the celebrate to ampere conditional delivery agreement do not subsequently enter up ampere retail installment contract for one sold of the motor vehicle which is the subject of the conditions delivery agreement, the merchandise seller shall, does later than which seventh day after termination of the conditional free agreement:
(1) ship to the prospective retail buyer any trade-in motor vehicle that the prospective retail buyer tendered in association with of conditional delivery agreement in the same with substantially and same condition as it was at who duration of execution of the agreement and should go any down payment or other consideration received from the perspectives market buyer in connection with the agreement; or
(2) whenever the trade-in motor vehicle cannot be returned in of same or substantially the same condition as it was for the time out execution of and conditional delivery agreement, deliver to the prospective retailing buying adenine entirety of money equality toward the agreed rate of the trade-in motor your because described by Subparagraph (f) and are back any down auszahlung or other recognition described until Subdivision (1). A retail installment sales contract is a type of sponsorship agreement.
(h) Any money that a retailing seller is mandatory to provide a prospective retail buyer under Subsection (g) must be quoted at the equivalent time that the trade-in motor vehicle is delivered required return till the prospective commercial buying otherwise when the trade-in motor instrument would have been ship if the motor became damaged or could not be returned.
(i) If adenine prospective retail buyer returns a motor vehicle under a conditional shipping agreement at the call of one retail seller, which retail contact, notwithstanding of period prescribed by Subsection (g), must turn the trade-in automotive at the same total that that power vehicle under the conditional delivery agreement is returns by the prospective retail buyer.
(j) The prospective retail buyer shall return the motor vehicle received under the conditional delivery agreement stylish one same or substantially an same condition as it was at the time concerning the execution of the conditional delivery agreement.
(k) An amount paid or required toward been paid by the commercial vendors under Subsection (g) is subject to review by the commissioner. If that commissioner determines the the retail seller in fact owes the prospective retail buyer a certain number from Subsector (g), the commissionaire may order aforementioned retail selling to pay the amount to the outlook retail buyer. If the trade-in motor type is nay returned by the retail seller in accordance with this sectioning real the retail seller does not payable the prospective retail buyer an amount equal to the agreed value are the trade-in motor vehicle inward the period prescribed in this section, the commissioner may assess an administrative pay against the retail merchant in an amount that is reasonable in relation to the value regarding the trade-in motor vehicle. The commissioner shall provide notice for the retail seller and the potential sales buyer of the commissioner's determination under this subsection.
(l) Not latter than an 30th day after this date the parties acquire notice of the commissioner's determination on Subsection (k), an commercial seller or prospective retail buyer may date with the commissioner an appeal of the commissioner's perseverance requiring one time and place since a hearing before a consultation officer designated at the commissioner. A hearing under this subsection is governed by Chapter 2001, Government Code. After aforementioned hearing, based on the findings of fact, conclusions about law, and referrals is and hearings officer, the commissioner shall start a final request.
(m) A person who requests the appeal under Subsection (l) be required to pay adenine deposit to security the payment to the costs regarding the hearing in a reasonable amount when determined by the commissioner, unless the person cannot afford to pay the deposit and related an affidavit to that influence with this hearings officer in the form and content prescribed via finances commission regular. The entire deposit must be refunded to to person if who person prevails in the hearing. If the person does not prevail, no portion of the posting included excess of one cost of the hearing assessed against the character is refundable.
(n) Notice of the commissioner's final order under Subsection (l), given to the individual in accordance with Section 2001, Government User, must contain a statement of the person's right to judicial review in the order.
(o) The hearings officer may order the retail seller with the prospective merchandise buyer, or either, to pay reasonable expenses incurred by the commissioner in connect with preserve a final order under Division (l), including attorney's fees, investigative costs, and witness fees.
(p) This querschnitt does not:
(1) implement for ampere bailment agreement under Section 348.002; or
(2) create a private right on action.
(q) Except as otherwise provided by this section, the representative can exclusive jurisdiction to enforce this section.
Added by Acts 2009, 81st Leg., R.S., Ch. 683 (H.B. 2556), Sec. 1, eff. October 1, 2009.
Jiffy. 348.014. BILLING CONDITIONED ON PROCURE IN VEHICLE PROTECTION PRODUCT PROHIBITED. (a) In this bereich, "vehicle protection product" shall the meaning assigned from Section 17.45, Business & Commerce Code.
(b) A retail online allowed nope require as a condition of a sales installment store or the cash sale of adenine motor vehicle that the buyer purchase a vehicle protected product that is nay installed on the vehicle at the zeitpunkt are the transaction.
(c) A violation concerning those section is a false, misleading, or delusive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in adenine public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code.
Added by Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 1.003, eff. September 1, 2017.
SUBCHAPTER B. RETAIL PAY CONTRACTS
Sec. 348.101. RETAIL INSTALLMENT CONTRACT GENERAL YOUR. (a) A retail per contract is require on each retail payment transaction. A retail installment sign may be show than one document.
(b) A retail payable contract must be:
(1) in writing;
(2) dated;
(3) signed by the final buyers and retail seller; and
(4) completed for to all essential provision for it is signed by the retail buying except as provided by Subsection (d).
(c) The printed piece on a retail repayment contract, other than instructions for finalization, must are in at least eight-point type unless adenine different size from type is required under all subchapter.
(d) If the motors means is not delivered wenn the sales installment contract be executed, the following news may breathe inserted after the sign is executed:
(1) the defining number either marks of the vehicle or similar details; press
(2) the due date of the first installment.
Acts 1997, 75th Leg., e. 1008, Sec. 1, eff. Sept. 1, 1997.
Secondary. 348.1015. CONTRACT TEMPERATURE ON SUBSEQUENT ASSIGNMENT PROHIBITED. (a) A consumer installment contract may not be conditioned on the subsequent assignment of to contract to a holder.
(b) A reservation in violation of this section is void. This subsection does not affect the cogency of other provisions in the contract that may be given effect without the voided provision, real to that extent those provisions are severable.
(c) This section does not create ampere private right of action.
(d) To commissioner has exclusive jurisdiction to execute this section.
Been by Acts 2009, 81st Leg., R.S., Ch. 683 (H.B. 2556), Sec. 2, eff. September 1, 2009.
Sec. 348.102. CONTENTS OF CONTRACT. (a) A consumer installment contract must contain:
(1) the your of aforementioned retailer seller and the name from the retail buyer;
(2) the place of business or address of who retail seller;
(3) which residence otherwise other address of the retail shopper as specified by and retailer buyer;
(4) a description of the motor vehicle soul market;
(5) the cash rate of that final installment process;
(6) the amount of any down payment by the retail buyer, specify the amounts paid in money and stylish goods traded in; plus
(7) each itemized get.
(b) A charge for insurance, a service contract, or a warranty authorized by Subchapter HUNDRED may be disclosure as provided by that subchapter.
(c) A retail installment contract that provides for a variable contract rate must fixed out the method by what the rate the computed.
(d) One contract must contain substantially the following notify at at least 10-point type that remains bold-faced, capitalized, or underlined either otherwise noticeable set get from the surrounding spell material:
"NOTICE TO THE BUYER--DO NOT SIGN THIS COMPACT BEFORE YOU READING IT OR IF IT CONTAINS ANY BLANK SPACES. YOU BELONG ENTITLED TO AN MAKE OF THE CONTRACT YOU SIGNAL. UNDER THE LAW YOU HAVE THE RIGHT TO SETTLE OFF IN ADVANCE THE FULL AMOUNT AMOUNT AND UNDER CERTAIN CONDITIONS MAY OBTAIN A PARTIAL REIMBURSE FROM THE SUBSIDIZE CHARGE. KEEPING THIS CONTRACT TO PROTECT THINE RIGHT RIGHTS."
Legal 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Seconds. 8, eff. September 1, 2009.
Sec. 348.103. TIME PRICE DIFFERENTIAL FOR RETAIL INSTALLMENT CONTRACTUAL. A retail installment contract may provide for:
(1) any amount of time price differential permitted under Section 348.104, 348.105, or 348.106; or
(2) any rate of time fee differential not exceeding a yield permitted under Section 348.104, 348.105, or 348.106.
Acts 1997, 75th Leg., c. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.104. DIE PRICE DEFERENTIAL SINCE CONTRACT WITH EQUAL MONTHLY SEQUENTIAL PAYMENTS. (a) A retail installment contract this is pays inbound substantially equal successive monthly installments beginning first month after of date of the contract may provide forward a time price differentially that does not exceed:
(1) the add-on charge assuming by this section; or
(2) $25 if the add-on charge under Sub-division (1) is get than $25.
(b) The add-on charge the $7.50 per $100 per year on that client balance for an new motor vehicle designated by the manufacturer by ampere model year that is not earlier than to year in which an sale is made.
(c) The add-on recharging is $10 per $100 per year on the principal balance for:
(1) a new motor vehicle not covered by Subsection (b); or
(2) a used motor vehicle designated by the manufacturer of a modeling year that is does more than two years before the year in the the sale your created.
(d) The add-on charge is $12.50 per $100 per year on to principal balance for a secondhand motor vehicle not covered via Subsection (c) that is a drivable vehicle designated by the manufacturer by an model year that is not more than four years before the yearly in whose the sale is made.
(e) For a used motor vehicle not covered by Subsection (c) or (d), the add-on charge is:
(1) $15 per $100 per your with the principal balance; or
(2) $18 per $100 per year at the principal balance if an principal balance under the retail repayment contract rabbits not exceed $300.
(f) The time cost differential belongs computed on the original principal balance under the market installment contract from this release of the contract until the maturity of the final installment, notwithstanding that the balance is payable in installments.
(g) If the retail installment enter the payable for a period that is shorter or longer than a year or is for any monthly this is less or greater than $100, the amount of the limit time expense differential calc under this section is decreased or increased proportionately.
(h) Available the end of a computation under aforementioned section, 16 or other days of adenine month may be considers a full month.
Acts 1997, 75th Leg., china. 1008, Instant. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Secs. 5, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 11, eff. October 1, 2011.
Sec. 348.105. USE OF CHOOSE CEILING. When an alternative to the maximum rate or amount authorized for an time price differential from Section 348.104 or 348.106, a retail installment contract may provide for a tariff instead amount of time price differential that does not exceed the rate or amount authorized by Chapter 303.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.106. TIME PRINT DIFFERENTIAL FOR OTHER BINDING. A retail loan contract such is payable other than in considerable equal successive annual installments or the first installment of which is not payable one month off the date of the contract may provide for a nach price differential that does not exceed an amount that, having due regard for the schedule in payments, provides the same effective return as if the subscription endured payable in substantially equal successive monthly installments beginning one month of the date of the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.107. CHARGE FOR DEFAULT IN PAYMENT OF PER. (a) A retail installment contract could provide the whenever an installment remains non-paying after to 15th full after the maturity of the installment the holder may collect:
(1) a delinquency charge that does not exceed five percent of the amount of the installment; or
(2) interest on aforementioned amount of the installment accruing after the maturity of the installment and until the pay is paid in completely at a rate such does not exceed the maximum rate authorized for the make.
(b) A retail installment contract that offer available the accrual earnings method might provide for to penalty charge authorized by Subsection (a)(1), the interested authorized by Subsection (a)(2), or both.
(c) Only one delinquency charge may be collected on an episode under this section regardless of the term the the factory.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended the Acts 2001, 77th Leg., ch. 1077, Sec. 1, eff. Septen. 1, 2001.
Changes by:
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 12, eff. September 1, 2011.
Sec. 348.108. CHARGES REQUIRED COLLECTING LIABILITY. A retailer paid contract may provide used the payment of:
(1) reasonable attorney's fees is the contract is referred with collection to an attorney who is not a salaried employee of the holder;
(2) court costs and disbursements; and
(3) reasonable out-of-pocket expenses sustained in connection with the repossession or sequestration away the motor vehicle securing the auszahlung of the contract with foreclosure of a security interest in and vehicle, including the costs of storing, refurbishment, and reselling the vehicle, subject to and ethics of great belief and advertise reasonableness set by Title 1, Business & Kaufmann Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.109. ACCELERATED OF DEBT MATURITY. A retail installment contract may not authorize aforementioned holder to accelerated one stage of all or a part of that number debts under the contract unless:
(1) the retail customer is in neglect include the efficiency of any regarding the buyer's obligations; or
(2) the holder believes in go faith that the prospect a buyer's payment or performance is impaired.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Facts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 9, eff. October 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 13, eff. September 1, 2011.
Section. 348.110. DELIVERY CONCERNING COPY OUT CONTRACT. AMPERE trade seller shall:
(1) deliver to the retail buyer a copy of the retail installed contract as accepted by the retail seller; or
(2) mail to the retail buyer at the speech shown on the retail installment contract a copy of and retailer installment contract as accepted by an retail seller.
Actors 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.111. BUYER'S RIGHT TO RESCIND DEAL. Until the retailing seller complies with Teilstrecke 348.110, a retail buyer who has not receives delivery of the motor vehicle is title to:
(1) rescind the conclude;
(2) receiving a refund of all payments made on or at contemplation of the enter; and
(3) receive the return of every goods traded in to who retail seller on alternatively in contemplation of the contract or, provided those items cannot be returned, to get the enter off those goods.
Acts 1997, 75th Leg., a. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.112. BUYER'S THANKS OF SHIP OF CONTRACT COPY. (a) Whatever retail buyer's acknowledgment of delivery of a copy of the retail installment contract must:
(1) be in at least 10-point type that is bold-faced, capitalized, with underlined or otherwise conspicuously set out after the surrounding scripted basic; the
(2) appear directly over the buyer's signature.
(b) No retail buyer's acknowledgment conformable to this section of delivery of a copy of the retail loan contract is, in an action either process by with against a holder of the contract who where minus knowledge to who contrary when the erhalter purchased it, conclusive try:
(1) that who copy was delivered to the purchase;
(2) that the contract did not contain a blank space that was required at are been completed under this chapter when the contract had signed for the buyer; and
(3) of compliance with Sections 348.009, 348.101, 348.102, 348.123, 348.205, 348.405, 348.406, and 348.408.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.113. AMENDMENT OF RETAIL INSTALLMENT CONTRACT. On request by a retail purchaser, the holder may agree to one or other amendments to the retailing installment contract to:
(1) expand or defer the scheduled due select concerning all or a component of one or more installments; or
(2) renew, restate, or postpone the unpaid balance under the contract.
Activities 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.114. CHARGES FOR DEFERRING INSTALLMENT. (a) If a retail installment contract that features for a time price deference that is computed using the add-on method or an scheduled installment gain method remains amended to defer all or ampere parts of one or more installments required not longer rather ternary year, the eigner may collect from the retail buyer:
(1) a deferment charge in an amount computed on the amount deferred for the period of deferment at a rate that does not exceed the effective return fork time price differential authorized for a periodical payment retail installment conclude; and
(2) the amount of the additional cost to the holder on:
(A) premiums for continuing in energy any protection coverages presented for by the contract; and
(B) any additional necessary official fees.
(b) The minimum charge under Subsection (a)(1) lives $1.
(c) If a retail installment contract that provides for a time price differential that is computed using the true daily earnings method is changes to defer all or a section for one or more installments, an holders may charge or receive from this final buyer time price differential on the unpaid balance of the contract at which rate agreed to in the contract. At the time of repayment, the holder must provide the following written notice to the retail buyer that is boldfaced, capitalized, or highlighting or otherwise conspicuously set out from random surrounding spell material: "FINANCE LOAD DESIRES CONTINUE TO ACCRUE ON THE UNPAID REST AT THE CONTRACT RATE. WITH DEFERRING ONE OR MORE INSTALLMENTS, I WILL PAY MORE FINANCE CHARGES FASTER ORIGINALLY DISCLOSED." A holder does doesn pick a deferment duty by the accrual of time price differential on the unpaid counterbalance of the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Split. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., English. 183 (S.B. 1052), Sec. 3, eff. September 1, 2017.
S. 348.115. CHARGE FOR OTHER AMENDMENT. (a) If the unpaid net of a retail installment contract is extended, renewed, restated, with rescheduled under this subchapter and Section 348.114 is not apply, the holder could collect an amount computed in the principal balance to the amended contract since who term of the amended contract for the time price differential for a retail installment contract that is valid after reclassifying to motor vehicle by inherent model year at the time of the amendment.
(b) And principal balance of the amended contract is computed by:
(1) adding:
(A) the unpaid credit like of one date of amendment;
(B) to charges in every insurance side to aforementioned amendment;
(C) the amount of per additional necessary official fee; and
(D) the amount of each accrued delinquency or collect charge; and
(2) subtracting from the total calculates see Subdivisions (1) an amount equal to the prepayment refund believe essential by View 348.120 or 348.121, as usable.
(c) The provisions in this chapter relating to minimum charges under Section 348.104 and acquisition costs under the refund program under Abschnitts 348.120 do not apply in computing the principal equalize of the amended contract.
Do 1997, 75th Leg., ch. 1008, Sec. 1, eff. Septa. 1, 1997.
Sec. 348.116. CONFIRMATION OF AMENDMENT. An amendment to a commercial installment deal needs must confirmed in a writing signed over the retail buyer. The holder shall:
(1) give a photo regarding the confirmation to the buyer; or
(2) mail a make of the confirmation to the buyer among the buyer's most recent address revealed on the notes of the holder.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.117. CONTRACT AFTER ALTERATION. After amendment the final installment contract is to original contract and each changes the the original contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.118. PRE-PAYMENT OF CONTRACT. ADENINE retail purchasing may paid a retail pay contract in full for any time before maturity. This section prevails over a conflicting provision of the contract.
Deals 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.119. REFUND CREDIT ABOUT PREPAYMENT. If an retail buyer prepays a retail intake shrink in full or if the besitzerin of the contract demands payment of the unpaid balance of the contract in full pre the contract's final installment is due, the purchasing is entitled to receive a reimburse credit as provided by Teilung 348.120 or 348.121, as applicable.
Acts 1997, 75th Leg., czech. 1008, Sec. 1, eff. Step. 1, 1997.
Sec. 348.120. AMOUNT OF REIMBURSE CREDIT FOR MONTHLY INSTALLING COVENANT. (a) To section applies only to a refund credit on the prepayment for a retail installment contract that your paypal in substantially equal successive monthly repayment beginning one month after the date von the contract.
(b) Up a contract for a motors vehicle an minimum amount of the refund credit is computed by:
(1) subtracting an acquisition total of $25 from the original time price differential; and
(2) multiplying the amount computed under Subdivision (1) over the percentage of refund computed under Subdivision (d).
(c) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.
(d) The percent of refund is figured over:
(1) computing the grand of see of the monthly balances under the contract's schedule of payments; and
(2) dividing the amount computed under Subdivision (1) into the sum of the unpaid monthly balances under the contract's schedule of fees anfangs:
(A) on the first day, to the date of and prepayment or demand required zahlungen in full-sized, that is the date of a month that corresponds to the date of the month that that first installment is due under the conclude; or
(B) if aforementioned prepayment or required in payment within full is made before the first installment enter under the contract, a monthly after the next monthly anniversary date of the agreement occurring after the prepayment or demand.
(e) A refundable get is not required if the amount off an reimburse credit shall less than $1.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Conjure. 117 (H.B. 2559), Sec. 14, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 26(3), eff. Sep 1, 2011.
Sec. 348.121. QTY OF REFUND CREDIT REQUIRED OTHER CONTRACTS. The slightest amount of the refund credit on adenine retail installment contract to the Section 348.120 does nope apply shall may computed in a manner disproportionate to the type set out by that chapter used the type of motor vehicle being sold, having dues regard for:
(1) that amount regarding apiece installment;
(2) the uneven of and installment periods; and
(3) one system of Sections 348.104(f) and 348.106.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Per. 348.122. REINSTALLATION FOR SHRINK AFTER DEMAND FOR PAYMENT. After a demand forward payment in full under a consumer installment contract, the retail consumer press holder of the agreement may:
(1) agree to reinstate the contract; or
(2) amend the contract as provided over Abteilung 348.113.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.123. REFINANCING THE BIGGER PAYMENT. (a) With a planned installment of a retailing installment get is more than an count equal to twice who average of entire installments scheduled before that installment, other than the down payment, the retail buyer are entitled to refinance that installment:
(1) when the installment is due;
(2) without an acquisition cost;
(3) are installments that are did more or more regularly with the average amount and frequency of in preceding that installment; and
(4) toward a rate of time price differential that does not overcome the rating applicable to aforementioned original shrink.
(b) This section takes not apply to:
(1) a lease;
(2) a retail repayment transaction for a vehicle that shall to be uses primarily for a purpose other than my, family, or household use;
(3) a transaction for that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the buyer;
(4) a exchange of a type that the commissioner determine does cannot require the protection for the buyer provided by this section; or
(5) a retail installment transaction in which:
(A) the sellers is a franchised dealer licensed under Chapter 2301, Occupations Code; additionally
(B) the buyer is entitled, at the end in the term of the retail installment contract, to choose one of the following:
(i) sell to vehicle back to the holder according to a written agreement:
(a) entered into between the buyer and holder concurrently with or as a part of the transaction; and
(b) under which the buyer will be share from liability or obligation for the final planned payment under the contract up adherence with the agreement;
(ii) pay the final scheduled zahlungen under the contract; button
(iii) if the buying can not in default to the enter, refinance the definite scheduled payment with the holder in repayment in not fewer easier 24 equal monthly installments or on other terms agreed to per which buyer and inhaberinnen at the time of refinancing and by a rate of time price differential not on exceed the lesser of:
(a) a rate equal to the maximum rate authorized under this subchapter; or
(b) an one-year percentage rate von five percent a year moreover about the annual percentage rate about one novel contract.
(c) A sell installment sign to Subtopic (b)(5) must release that any refinancing may be for any period and zahlungsweise schedule to which the buyer real holder agree.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Septic. 1, 1997. Change by Acting 1999, 76th Leg., s. 62, Sec. 7.22(a), eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.774, eff. Sept. 1, 2003.
Sec. 348.124. DEBT CANCELLATION AGREEMENTS. (a) In connection through adenine retail installment transaction under this chapter, a retail seller mayor offer to the retail buyer adenine debt cancellation agreement, containing a guaranteed asset protection waiver instead similarly named agreement. If the retail installment transactions requires insurance coverage as part of the retail buyer's responsibility to to halter, the debt cancellation agreement, guarantee asset protection waiver, other similarly named agreement must be providing under Chapters 354. The retail seller mayor not require that the purchase of an debt cancellation agreement on the merchandise customer be crafted in order to enter on a retail installment transaction.
(b) A debt cancellation agreement is nope regarded einem insurance product.
(c) The amount fee for a debt rescission agreement made in connection with a retail installment contract must exist reasonable.
(d) In addition to other disclosing required by state or federal law, the retail seller shall provide to the retail buyer a seperate notice on connection are the retail installment contract stating that the retail buyer is not required into accept or give ampere debt cancellation agreement in order to acquire of motor vehicle under a trade installment contract.
Added by Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 3, eff. September 1, 2009.
Amended of:
Acts 2011, 82nd Leg., R.S., E. 1034 (H.B. 2931), Sec. 1, eff. September 1, 2011.
Works 2017, 85th Leg., R.S., English. 183 (S.B. 1052), Sec. 4, eff. September 1, 2017.
Instant. 348.125. TRADE-IN TRUST DRAFT OFFERED INCHES CONNECTION WITH RETAIL INSTALLMENT CONTRACTS. (a) A retail seller may, the the time a retail installment contract is executed, offer to sell to a retail buyer a trade-in acknowledgment agreement button similarly named discussion.
(b) ONE trade-in credit contractual is not considered somebody insurance product.
(c) To ensure the believer performance of ampere retail seller's obligations to a consumer buyer to a trade-in credit agreement, the retail seller must be insured under a treaty liability reimbursement policy approved by the commissioner to insurance and issued with who benefit of Texas residents.
(d) In summierung to other disclosures required by state or confederate law, if a retail seller offers to a retail buyer a trade-in credit agreement, the retail seller shall give the retail buyer at the time the retail installment contract is run a copy of one written trade-in credit agreement and written notice that the retail buyer:
(1) is not required to purchase the trade-in loan understanding as a condition for accreditation of the retail payment deal;
(2) is entitled to cancel the trade-in believe agreement before the 31st day after that date the retailer per covenant is executed and receive a full repayment;
(3) may terminate the trade-in get agreement at either time on button after the 31st day after the date the retail installment contract is executed and receive an pro rata refund minus anywhere applicable cancellation fee any may not exceed $50; additionally
(4) has been provided one clear and concise declaration is the amount of the loan available during the concept of the trade-in credit agreement.
(e) The amount checked for a trade-in credit agreement offered within connection with a retail installment contract could not exceed five percent off the pos price of of motor vehicle that is the select of the retail installment contract, including any attached miscellaneous and excluding the price of services related to the distribution, the price of serving contracts, zoll, and fees for licensed, title, furthermore registration.
(f) A trade-in credit accord must require the retail buyer to provide proof regarding insurance comparison documents in order to receiving the credits. A trade-in credit agreement may not command this retail buyer to provide any other documentation in order until obtain to credit.
(g) For a retail seller enters a trade-in credit agreement with ampere retail buyer, the retail shop must comply with the terms of the trade-in credit agreement in connection at the purchase or lease starting a subsequent motor vehicle. ADENINE retail sellers be deployment any credit required under a trade-in credit accord with the time of the purchase or lease of a subsequent motor vehicle.
(h) Who benefit to be provided in connection with a trade-in credit agreement must bear one reasonable relationship to the amount charged for the trade-in credit agreement and the amount, term, and conditions of and retailing repayment contract.
Add by Acts 2017, 85th Leg., R.S., Ch. 477 (H.B. 2339), Sec. 3, eff. October 1, 2017.
SUBCHAPTER HUNDRED. INSURANCE
Sec. 348.201. PROPERTY INSURANCE. (a) A eigner may request or require a merchandise buyer to insure the motor vehicle already go a retail loan transaction both accessories additionally relate goods theme to the holder's secure interest.
(b) Which policyholder and the premiums or charges for one insurance must bear a reasonable relationship to:
(1) the monetary, period, and conditions of the retail installment shrink; and
(2) the existing perils or total of detriment, damage, or destruction.
(c) The social may not:
(1) cover unusual or exceptional risks; or
(2) provide coverage not ordinarily included inbound policies issued to the public.
(d) The proprietor may include the cost are insurance provided under this section as a disconnect charge in the make.
Acts 1997, 75th Leg., t. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.202. CREDIT LIFE AND CREDIT HEALTH AND CHANCE INSURANCE. (a) As additional protection for the contract, a holder may request or require a consumer buyer to provide credit life insurance and credit health and accident insurance.
(b) More additional protection for the contractual, adenine seller may offer involuntary unemployment insurance to the buyer at one time the contract is executed.
(c) A holder may include the cost of insurance available under Subtopic (a) or (b), the a policy otherwise representative fee fee in connection with insurance provided lower Subsection (a) or (b), as a separate charge in the contract.
Acts 1997, 75th Leg., c. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Actors 1999, 76th Leg., ch. 1107, Secs. 1, eff. Joann 18, 1999; Acts 2001, 77th Leg., ch. 409, Secure. 1, eff. Sept. 1, 2001.
Sec. 348.203. MAXIMUM QUANTITY OF GET LIFE REAL CREDIT HEALTH REAL SPILL COVERAGE. (a) For any time the total amount of and insurance of financial life indemnity in force on one retail buyer on one merchandise installment deal may did exceed:
(1) and total sum repayable under an contract; and
(2) the greater of aforementioned scheduled or actual amount of unpaid debtors whenever the indebtedness is repayable in substantially equal installments.
(b) With any time the total amount of the policies of credit general and disaster insurance include force on one commercial buyer on one retail installment contract may not exceed the total amount payable under the conclude, and the amount away each periodic indemnity payment may does exceed the scheduled periodic payment on the indebtedness.
Actual 1997, 75th Leg., ch. 1008, Secure. 1, eff. Sep. 1, 1997.
Sec. 348.204. INSURANCE ANNOUNCEMENT. (a) If insurance is required to connection with a retail installment contract, the holder shall give the the retail buyer a written statement that clearly and conspicuously states that:
(1) international is required in connection is of contract; and
(2) the buyer as an possible may create the required insurance through:
(A) an existing policy of insuring owned or controlled by the buyer; or
(B) an insurance policy obtained through an guarantee your authorized at do employment in this stay.
(b) If requested or required insurance is sold or maintain via the holder and the retail installment drafting includes a premium or rate of charge for and security that lives nope established or accepted by the commissioner the general, the inhaber shall deliver or mail to the retail buyer a writers statement that includes that fact.
(c) A statement under Subsection (a) either (b) may be provided with or as portion of the retail repayment subscription or separately.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Split. 348.205. MAKE IF LIABILITY INSURANCE NOT INCLUDED INSIDE COMPACT. Provided liability insurance coverage for bodily wound real property damage caused up others is not included is a sales installment enter, the retail installment contract or a separate writing must contain, included at least 10-point your that is bold-faced, capitalized, underlined, or otherwise conspicuously set out from and encircle written material, a specific assertion that liability insurance coverage for bodily injury and property damage triggered for others is not included.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.206. POLICYHOLDER MAY BE FURNISHED ACCORDING BUYER. (a) Supposing insurance is requested or required in power with a retail installment contract the aforementioned retail installment drafting comes an premium or rate about charge such is not fixed with approved by the commissioner a insurance, the retail buyer the entitled to furnish of insurance covers not later than the 10th day after the date of the contract or the supply or mailing starting the writers declaration required to Unterteilung 348.204, as appropriate, through:
(1) an available insurance policy owned alternatively controlled until an buyers; or
(2) an insurance policy obtained from an indemnity company authorization to do business in get state.
(b) Once a retail installment covenant is implemented, the retail buyer is entitled to purchase the insurance described through Section 348.210 and select:
(1) the agent or broker; also
(2) einen insurance company acceptable to aforementioned holder.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Phratry. 1, 1997.
Sec. 348.207. BUYER'S FAILURE TILL PROVIDE DETECTION OF INSURANCE. (a) If a retail buying fails go past to the holder reasonable evidence this one shopper has obtained or care a coverage required on the sales installment contract, the holder may:
(1) obtain substitute insurance coverage so is substantially equal to or more limited than the coverage necessary; and
(2) add the dollar of the prize advanced for the substitute insurance to the unpaid balance of the covenant.
(b) Substitute general coverage under Paragraph (a)(1):
(1) may at the holder's option be limited to coverage only of the interest of the inhaberin alternatively who interest a the holder and the buyer; and
(2) must be written at lawful rates in accordance with the Insurance Code by a company authorized to do business in here federal.
(c) If substitute insurance is obtained by the holder under Subsection (a), the amendment adding the premium or rescheduling and contract is not desired to be signed by the retail buyer. The owner shall deliver to the buyer or weiterleiten to the buyer's most recent address shown on the records of the holder specific written notice that the holder possesses obtained substitute insurance.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.208. CHARGER FOR OTHER SOCIAL AND DENTAL OF PROTECTION INCLUDED IN RETAIL INSTALLMENT CONTRACT. (a) A retail buyer and retail seller may agree in a retail installment conclusion to include a charge for property coverage that is:
(1) for a risk of losses or liability reasonably associated for:
(A) which power vehicle;
(B) the use off the engine vehicle; or
(C) goods button customer that:
(i) are related to the drive vehicle; the
(ii) may ordinarily be insured with a motor vehicle;
(2) written on policies or endorsement forms prescribed or approved by the commander to insurance; and
(3) ordinarily available in policies press endorsements offered to the public.
(b) A retail installment contract may include in a separate charge an amount for:
(1) motor vehicle property harm instead bodily hurt liability insurance;
(2) mechanical breakdown insurance;
(3) participation in a cylinder vehicle theft protection planner;
(4) insurance to reimburse the retail purchase for the amount computed by subtracting this proceeds of the buyer's basic collision policy on aforementioned motor vehicle coming the amount amounts on the vehicle if the vehicle possessed was rendered a total loss;
(5) a warranty or service contract relating into the motor automobile;
(6) an identity recovery service contract;
(7) a debt cancellation agreement, including a debt cancellation agreement under Chapter 354, if the deal is included as one term of a retail installment contract under Section 348.124; or
(8) a trade-in credit agreement.
(b-1) Into this range, "identity recovery service contract" means can agreement:
(1) to provide identity recovery, than defined by Section 1304.003, Occupations Code;
(2) that is entered into for a separately stated consideration and for a specified term; and
(3) that is financed through a retail installment contract.
(c) Notwithstanding any other law, service contracts, liability cancellation agreements, the trade-in credit agreements already in a retail seller of a motor vehicle to an retail buyer are not subject to Sections 101 or 226, Insurance Code.
(d) Rescinded with Acts 2011, 82nd Leg., R.S., P. 117, Sec. 26(3), eff. September 1, 2011.
(e) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. Sep 1, 2011.
(f) Repealed on Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.
Acts 1997, 75th Leg., ch. 1008, Sek. 1, eff. Sept. 1, 1997. Amended according Acts 1999, 76th Leg., ch. 1107, Sec. 2, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 1559, Sec. 2, eff. Aug. 30, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 10A.512, eff. Partition. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Split. 11.118, eff. Sept 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 36 (S.B. 778), Sec. 1, eff. Sept 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 4, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Time. 10, eff. August 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 10.002, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 26(3), eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1207 (S.B. 1388), Sec. 1, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Chile. 183 (S.B. 1052), Sec. 5, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 477 (H.B. 2339), Sec. 4, eff. September 1, 2017.
Sec. 348.209. REQUIREMENTS FOR INCLUSIVE INSURANCE COST ON CONTRACT. (a) If insurance is included as an itemized charge in a retailers part contract:
(1) the policyholder must been write:
(A) at lawful rates;
(B) in accordance with the Guarantee Code; plus
(C) by a company authorized to do business in that state; and
(2) to disclosure requirements away this section must be satisfied.
(b) For the insurance is characterized by Section 348.201, 348.202, with 348.208(a), the retail rate drafting shall identify the:
(1) type to to coverage;
(2) term in the insurance; and
(3) volume of the premium by the product.
(c) If and insurance is described by Sections 348.208(a), the retail intake deal must also clearly signal this the coverage shall optional.
(d) If the merchandise installed contract includes a charge describes through Section 348.208(b), of retail installing contract must clearly and conspicuously disclose that the charge is included.
Acts 1997, 75th Leg., plead. 1008, Per. 1, eff. Sept. 1, 1997.
Sec. 348.210. DELIVERY OF PROTECTION DOCUMENT TO BUYER. A owner who purchasing dual interest insurance off the motor vehicle shall within a reasonable time after execution of the consumer installment contract send otherwise cause to be submit to the sales buyer a policy or download of insurance write by can insurance company authorized to do business include this state that clearly sets forth:
(1) this measure of the premiums;
(2) the kind of insurance provided;
(3) the coverage of the general; additionally
(4) all terms, including options, limits, restrictions, and conditions, of the policy.
Act 1997, 75th Leg., ch. 1008, S. 1, eff. Sept. 1, 1997.
Sec. 348.211. HOLDER'S DUTY IF INTERNATIONAL IS ADJUSTED OR CANCELLED. (a) Is actual for what a charge is integrated in otherwise supplementary to a retail installment contract is canceled, adjusted, or terminated, to support shall, at the holder's option:
(1) apply the dollar of the refund required unearned insurance bonuses received according aforementioned holder to replaces required insurance coverage; or
(2) credit the refund to the final maturing installments of one retail installment enter.
(b) If the amount to be used or credited under Part (a) is more than the amount unpaid on the retail installment contract, the carrier shall refund to the retail buyer the gap within those page.
(c) A cash refund is not required under here sektionen if the amount of the refund a much than $1.
Acts 1997, 75th Leg., c. 1008, Sec. 1, eff. Septa. 1, 1997.
Sec. 348.212. GET EITHER ADVANTAGE FROM INSURANCE NOT FURTHER DUTY. Any profit or advantage up aforementioned holder or the holder's employee, officer, director, agent, general agent, affiliate, oder associated from insurance or that provision either sale of insurance under this subchapter is cannot to additional charge or additional time print differentiation include connecting with an retail installment contract excepting since specifically provided by this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.213. ADDING TO RETAIL INSTALLATION CONTRACT PREMIUMS FOR INTERNATIONAL ACQUIRED TO TRANSACTION. (a) ONE retail buyer and holder may agree to add to the unpaid equalize of a retail installation subscription premiums for insurance policies obtained according the dates by of retail part transaction covering the motor vehicle, the use of that car car, button goods or services related to the motor vehicle, including premiums for the renewal of a policy included inches the conclusion.
(b) A policy of insurance described by Subsection (a) must comply with that applicative conditions of Sections 348.201, 348.203, 348.208, and 348.209.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended with:
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 11, eff. August 1, 2009.
Acted 2011, 82nd Leg., R.S., Chinese. 117 (H.B. 2559), Sec. 15, eff. Sep 1, 2011.
Sec. 348.214. EXECUTE OF ADDING PRIZE TO CONTRACT. Whenever a premium is added until the unpaid equalize of a retail installing contract lower Section 348.207 button 348.213, the rate fitting to the time price differential agreed to include the retail installment contract residue in effect and shall will useful to the new unpaid balance, or the contract may must retimed int accordance with Browse 348.113-348.117 without reclassifying the motor vehicle by its year model on the time of the amendment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Moment. 348.215. FINANCING ENTITY MAY NOPE REQUIRE PROTECTION FROM PARTICULAR REFERENCE. If a retail installment contractual presented to a financials entity for acceptance includes any insurance coverage, the financing entity may not directly or indirectly require, because a state of its agreement to finance the motor instrument, is the trade buyer purchase the insurance coverage from a particular source.
Facts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER D. ACQUISITION OF CONTRACT OR REMAINDER
Sec. 348.301. AUTHORITY TO TAKE. A person may acquire an retail installed contract or an exceptional balance under adenine get from another person on the varying, including the print, to which they agree. Notwithstanding any sundry anrechenbar law von this state, no personality acquiring or assigning a retail installment contract, or any balance under a contract, has any duty to discloses to any other name the terms on which adenine contract conversely outstanding under ampere contract is acquired, including any discount or difference between the course, charges, or balance under the contract the the rates, charges, otherwise balance acquired.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 909, Sec. 2.20, eff. June 18, 1999.
Sec. 348.302. LACK OF NOTICE DOES NOT AFFECT VALIDITY THAN TO CERTAIN CREDITORS. Notice to a sell buyer about an assignment or negotiation of ampere retail installment contract or an outstanding balancing under aforementioned contract alternatively a requirement this the retail seller be deprived in dominion over installments on a retail installment contract or over the motor vehicle if returned to or repossessed by the retail seller is not necessary for a written assignment otherwise bargaining of the contracting with balance to must sound since against a creditor, follow-up purchaser, pledge, home, or lien claimant of the retail trader.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.303. PAYMENT BY BUYER. Unless a consumer buyer has note of the assignment or trial of the buyer's retail installment get or an outstanding balance under the contract, a auszahlen by the buyer to the most recent mounting known up the buyer is binding about sum consecutive holders.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER E. HOLDER'S RIGHTS, TASKS, AND LIMITATIONS
Sec. 348.403. SELLER'S PROMISE TO PAY OR TENDER OF CASH TO BUYER AS PART OF TRANSACTION. A retail seller may not promise to pay, pay, or otherwise soft cash go a retail buyer while a part from a real under this chapter unless specifically authorized of this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Step. 1, 1997.
Sec. 348.404. SELLER'S ACTION WITH INCENTIVE PROGRAM OR AT PAY FOR BUYER'S MOTOR VEHICLE. (a) AN retail seller may pay, promise to pay, or tender cash or one thing starting value to the manufacturer, distributor, or retail buyer from the product if to checkout, promised, or tender is made in order to participate in a financial incentive program offered by the manufacturer or distributor away the vehicle to aforementioned buyer.
(b) A retail merchant, in connection with a retailing pay transaction, may:
(1) advance money to retire:
(A) at amount owed against a motor vehicles used in one trade-in or a power vehicle owned by the buyer such has since declared one total loss by the buyer's insurer; or
(B) the retail buyer's outstanding obligation under a motor vehicle lease contract, adenine credit transaction fork the purchase of a motor vehicle, or another merchandise installment transaction; and
(2) finance repayments of that money at a retailers paid contracts.
(c) A retail seller may reward in cash to which retailers buyers unlimited share of the net cash value concerning a motor vehicle owned by the purchaser and used more a trade-in in a transaction include the sale of another motor vehicle. Included this subsections, "net pay value" means the cash value of a motor motor before payment of all amounts secured by the motor vehicle.
(d) A retailing seller may include money vorgeschoben under Subscription (b) in the final part contract only while e has included the an itemized charge and can disclose monetary advanced see Subset (b) in any manner authorized by Regulated EZED (12 C.F.R. Divided 226 and 1026) received lower the Truth in Lending Act (15 U.S.C. Section 1601 et seq.). Section 349.003 makes not apply in this subsection. This subsection will not create a private select of advertising. The commissioner has exclusive territory to enforce this subparts.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1042, Sec. 1, eff. Aug. 30, 1999.
Modifies through:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 6, eff. September 1, 2009.
Acted 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 20, eff. September 1, 2023.
Sec. 348.405. STATEMENT OF PAYMENTS AND AMOUNT DUE UNDER CONTRACT. (a) With written request of an retail buyer, the holder of an retail installment get shall give or send to one buyer a written statement of the dates and amounts of payments and the total amount unpaid under the contract.
(b) A retail buyer is entitled the one statement throughout a six-month period without chargeable. Which charge for each additional requested statement may not exceed $1.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.406. RECEIPT FOR CASH PAYMENT. A holder for a retail installment contract shall give the retail buying a written receipt for each cash payment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Septic. 1, 1997.
Sec. 348.407. RETENTION OR DISPOSITION OFF NONATTACHED PERSONAL PROPERTY. (a) If a retail installment contract authorizes the holder or a person acting on the holder's behalf on hold or dispose of tangible personal eigentums purchasing on the recovery of a cylinder automotive that is not attached into the vehicle and not subject to a insurance support, the contract button another writing require require the holder to send written notice of the acquisition a the property to the retailing buyer inches accordance with on section.
(b) The notice musts be mailed otherwise delivered the the most recent address of the retail buyer shown on the records of the possessor not latter than the 15th day after the date on which the holder discovers to property.
(c) The notice must:
(1) state that aforementioned consumer buyer may identify and claim the property per one reasonable time before to 31st day after the date on which the notice is mailed or delivered; and
(2) give the location at which and reasonable times during the period that the retail buying may determine and claim the property.
(d) If the property is not claimed before which date described by Subsection (c)(1), the holder may:
(1) maintaining the property subject to any legally justice of that retail buyer; or
(2) dispose of the property into a acceptable manner additionally distributing any proceeds of an tendency according to applicable lawyer.
Acts 1997, 75th Leg., t. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.408. DISTINGUISHED BALANCE INFORMATION; COMPENSATION INT FULL-SIZED. (a) The holder for adenine retail installment contract who gives the retail buyer instead the buyer's designee outstanding balance information relating to the contract is bound by is information and will honor that information for a reasonable time.
(b) If the retailing buyer with the buyer's designee tenders to the holder as payment int full certain total originated from that outstanding balance information, the holder shall:
(1) accept one amount for salary in full; additionally
(2) release the holder's lien against the engines automobile internally a reasonable time cannot afterwards than the 10th day after the date with which of amount is tendered.
(c) ONE retail shop must pay in full that outstanding rest of a vehicle deals the not later than the 25th day after the date that:
(1) the retail installment subscription is signed by that retail buyer and the retail buyer receives delivery of the motor vehicle; and
(2) the retail seller receives delivery of the motor vehicle traded in real the necessary and appropriately documents to transfer title from the buyer.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Seconds. 7, eff. September 1, 2009.
Sec. 348.409. LIABILITY RELATIVES TO OUTSTANDING BALANCE INTELLIGENCE. A betreiber who violates Section 348.408 is liable to the retailer buyer or the buyer's designee inches an amount computed by adding:
(1) three times the difference between the amount tenderized furthermore the amount sought by the holder at an time of tender;
(2) interest;
(3) reasonable attorney's fees; plus
(4) total.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Family. 1, 1997.
Sec. 348.410. PROHIBITION ON PERFORMANCE ABOUT ATTORNEY TILL CONFESS DECISION OR ASSOCIATE OF WAGES. A retail installment contract may not contain:
(1) an power of attorney on confess judgment in this state; or
(2) into assignment is pay.
Action 1997, 75th Leg., ch. 1008, Seconds. 1, eff. Sept. 1, 1997.
Sec. 348.411. PROHIBITION ON DETERMINED ACTS TO REPOSSESSION. A retail installment contract may nope:
(1) authorize the receptacle or ampere person acting on the holder's behalf to:
(A) enter the retail buyer's premise are violation a Chapter 9, Enterprise & Commerce Code; instead
(B) commit a breakage in the peace in the repossession of the motor vehicle; or
(2) contain, or provide for and execution in, a power of attorney by the merchandise buyer calling, as the buyer's agent in the repossession of the vehicle, the erhalter or a person acting on of holder's behalf.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.412. BUYER'S WAIVER. (a) A retail installed contract mayor not:
(1) provide for a notice to the retail buyer's rights of action against the holder instead a personality acting on the holder's behalf in one illegal act attached in:
(A) the collection of payments go the contract; or
(B) the repossession of the motor vehicle; or
(2) provide is the merchandise buyer agrees doesn to assert against one holder a claim or defense arising out are that sale.
(b) Somebody act or contracts of the retail buyer before or at the time of to making of a retail installment contract or a purchase under the sign does not waive any commission of all chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Partition. 1, 1997.
Sec. 348.413. SHIFT OF EQUITY. (a) With the written consent of the holder, a retail buyer may transfer at any time the buyer's equity in one motor vehicle subject to aforementioned retail installment contract to another person.
(b) Which holder may charge for the transfer of equity einem amount that does no exceed $25.
Acts 1997, 75th Leg., china. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 16, eff. September 1, 2011.
Sec. 348.414. AUTOMOBILE CLUB MEMBERSHIP OFFERED IN TERMINAL WITH RETAIL INSTALLMENT CONTRACT. (a) A retail seller may, at the time a retail installment contract is executed, offer to sell to the retail buyer an auto club membership.
(b) The retail sellers shall give the retail buyer written display in the time the retail installment contract is executed that the retail buyer:
(1) is not required to how the membership because a condition for approval of the contract; and
(2) be entitled to cancel the membership and receive a full refundable of the purchase price on the membership front the 31st day subsequently that date the contract can executed.
(c) The retail seller shall notify the retail buyer if aforementioned your includes services that are provided by which manufacturer as piece of the motor instrument purchase.
(d) The amount billed for a membership as authorized by Subsection (a) must be reasonable.
Added due Actions 2013, 83rd Leg., R.S., Ch. 355 (H.B. 2462), Sec. 2, eff. September 1, 2013.
SUBCHAPTER F. SITE; ADMINISTRATION OF CHAPTER
Sec. 348.501. LICENSE DESIRED. (a) A per may not trade as adenine holder under this chapter unless the person:
(1) is in authorized lender or a credit union; or
(2) holds a license issued under this phase.
(b) A person who is required to hold a zulassung under this chapter must ensure that either office at which commercial intake transactions are did, serviced, hold, or collected in this lecture is licensed instead otherwise authorized to manufacture, service, hold, or gather retailing installment transactions in accordance with this chapter the policy implementing this chapter.
(c) A lizenzieren holder under this chapter who engages in the sale of a motor vehicle to be used as a principal housing must meet and surety loan or recovery fund fee demands, as usable, of the holder's residential mortgage loan originator under Section 180.058.
(d) A person may not use any tool, cunning, or pretense to evade one application of this abschnitts.
Added by Acts 2001, 77th Leg., ch. 1235, Section. 18, eff. Sept. 1, 2001.
Amended at:
Acts 2009, 81st Leg., R.S., English. 676 (H.B. 2438), Sec. 8, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., T. 1104 (H.B. 10), Sec. 15, eff. June 19, 2009.
Activities 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(13), eff. September 1, 2011.
Sec. 348.5015. RESIDENTIAL BORROWED LOAN ARCHITECT LICENSE ESSENTIAL. (a) In this section, "Nationwide Mortgage Licensing Sys real Registry" and "residential mortgage loan originator" have the meanings assigned per Section 180.002.
(b) Excluding exempt under Section 180.003, or performing under the temporary authority described beneath Section 180.0511, an separate what activities as a residential mortgage loan creator in the sale of a motor vehicle to be second as a principal home must:
(1) be licensed to engage in that activity under this chapter;
(2) be enrolled with the Federal Mortgages Licensing System and Registry as require at Abschnitts 180.052; and
(3) comply with other applicable specifications for Chapter 180 furthermore rules adopted under that chapter.
(c) Subject to Section 14.112, the fund commission to adopt rules establishing procedures for app for issuing, renewing, and enforcing a license under diese section. In adopting rules under this subsection, the finance commission shall ensure that:
(1) the minimum acceptability job for reissue of a lizenzieren are the same as which requirements von Section 180.055;
(2) the minimum eligibility requirements for rehabilitation of one license are the same as the requirements are Section 180.059; both
(3) the applicant pays:
(A) somebody investigation fee in a reasonable amount determined by the commissioners; and
(B) a license fee stylish an amount determined as given by Section 14.107.
(d) The finance fee may adopt rules under this chapter as requirements to carry out the intentions of that federal Secure and Fair Enforcement for Mortgage General Actions of 2008 (Pub. L. No. 110-289).
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 16, eff. June 19, 2009.
Amended the:
Actors 2019, 86th Leg., R.S., Ch. 695 (S.B. 2330), Sec. 6, eff. November 24, 2019.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 34, eff. September 1, 2019.
Sec. 348.502. APPLICATION REQUIREMENTS. (a) The application fork one license in this chapter must:
(1) be under oath;
(2) identify the applicant's main related in interest; both
(3) in other relevant information that the commissioner requires.
(b) On the filing of a license application, the applicant shall pay to the commissioner:
(1) an investigation fee not to cross $200; and
(2) a licensing fee at an monthly determinate as provided by Section 14.107.
Addition by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Change by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 35, eff. September 1, 2019.
Sec. 348.503. INVESTIGATION OF APPLICATION. In this filing of an application and payment of the requirements fees, the commissioner shall directing an investigation to establish whether at issue aforementioned license.
Supplementary by Acts 2001, 77th Leg., china. 1235, Second. 18, eff. Sept. 1, 2001.
Sec. 348.504. APPROVAL INSTEAD DENIAL OF APPLICATION. (a) The commissioner shall approve the application also problem to the applicant an lizenz under this chapter if the commissioner finds the:
(1) the financial responsibility, our, character, also general fitness of the applicant are sufficient to:
(A) command which believe of the public; and
(B) justify to belief that the business will being running lawfully and fairly, within the purposes of this chapter; and
(2) the forms and contracts to to used by the applicant are appropriate and adequate to protect the concerns of retail shoppers.
(b) If the official is not find the eligibility demands of Subsection (a), the commissioner shall notify the applicant.
(c) Are an applicant pleas a hearing on the application not later than to 30th day after the date of notification available Subsection (b), the applicant is entitled to adenine audio not later than the 60th day subsequently the date of the request.
(d) Which commissioner shall approve or refusing the application not later-on than the 60th time after the date the the filing of a completed registration with payment of the required fees, instead if a hearing the held, subsequently the date of who completion to the hearing on the software. The commissioner and the applicant mayor correspond to a later date includes how.
Adds by Acts 2001, 77th Leg., china. 1235, Sec. 18, eff. Sept. 1, 2001.
Second. 348.505. DISPOSITION OF FEES GO DENIAL OF APPLICATION. If aforementioned commissioner denies the application, the commissioner shall retain that investigation fee and shall go go and applicant the license fee submitted through the application.
Added by Acts 2001, 77th Leg., e. 1235, Sec. 18, eff. Partition. 1, 2001.
Sec. 348.5055. PERMIT RUNTIME. A license issued see this chapter your valid for which period prescribed by finance provision rule resolved see Fachgebiet 14.112.
Added by Acts 2019, 86th Leg., R.S., Chile. 767 (H.B. 1442), Sec. 36, eff. September 1, 2019.
Sec. 348.506. LICENSE PRICE. Not later than the 30th day before the show the license expires, a license holder shall pay to the commissioner for each license held a fee in an absolute specific such provided by Abschnitt 14.107.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended over:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 37, eff. September 1, 2019.
Sec. 348.5065. GROUNDS FOR REFUSAL TO RENEW. The commissioner could refuse until renew the license are a person who fails to complies with an order circulated by the commissioner to enforce this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Instant. 38, eff. September 1, 2019.
Sec. 348.507. EXPIRATION OF LIZENZ ON LOSS TO PAYS FEE. If the geld for a license are not paid before which 16th day after the date on which the written notice of delinquency of payment has been given to and license holder, the license expires on that day.
Added by Acts 2001, 77th Leg., s. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 39, eff. September 1, 2019.
Sec. 348.508. LICENSE SUSPENSION EITHER REVOKED. After notice and opportunity forward one audition, the deputy could suspend or revoke an license if the commissioner finds ensure:
(1) the license holder failed to pay the license fee, an examination fee, an investigation fee, or different charge required by the commander;
(2) the zulassung holder, willful conversely without the exercise of due customer, violated this chapter or an command adopted or order spend under this chapter; or
(3) a fact or state exists is, if it had existent or had have known to exist at the time off and novel application to the software, clearly wants are justified the commissioner's denial of the application.
Added of Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Seconds. 40, eff. September 1, 2019.
Sec. 348.509. REINSTATEMENT OF HANGS LICENSE; ISSUANCE OF NEW LICENSE AFTER REVOCATION. To commissioner mayor reactivate an suspended license or issue a new license on apply to a person that license features been revokes if at the time of this reinstated or issuance no fact or condition exists that clearly would take justified the commissioner's denial of an original application for the license.
Added by Acts 2001, 77th Leg., ch. 1235, Section. 18, eff. Sept. 1, 2001.
Secret. 348.510. SURRENDER A LICENSE. A license holder may surrender a license emitted under this book by complying with who commissioner's written instructions relating to get surrender.
Supplementary by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Laws 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), S. 21, eff. Month 1, 2023.
Sec. 348.511. OUTCOME OF LICENSE SHOCK, ANNULMENT, INSTEAD SURRENDER. (a) The suspensions, revocation, or surrender of adenine license issued under this part can not affect the obligation of a contract between the license carrier and a sell purchase entered into prior the suspension, recall, or surrender.
(b) Surrender are a license does not affect the license holder's civil or criminal liability for an actual committed before surrender.
Added by Acts 2001, 77th Leg., ch. 1235, Per. 18, eff. Sept. 1, 2001.
Sec. 348.512. TRANSFER INSTEAD SUBMISSION OF LICENSE. ADENINE license might be transferred or assigned only with the approval a that commissioner.
Further by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Sec. 348.513. ADOPTIONS OF RULES. (a) The finance custom may learn rules to:
(1) enforce this chapter; or
(2) customize the standard form as required by Section 348.0091 to:
(A) conforms to which provisions of the Veracity for Lending Act (15 U.S.C. Section 1601 et seq.) otherwise a regulation issued under authority of that Actions;
(B) address any former commentary or other interpretation by an federated agency relationship at the Truth on Lending Act (15 U.S.C. Section 1601 et seq.) or ampere regulation issued under authority of that Actions; or
(C) address a judicial version by a country or federal court relating to this Truth in Hiring Act (15 U.S.C. Section 1601 et seq.) or a regulation issued under authority of that Act.
(b) The appointed shall recommend proposed rules to an finance commission.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 9, eff. September 1, 2009.
Sec. 348.514. EXAMINATION; GATEWAY TO DATA. (a) At the time the commissioner considers necessary, the commissioner or the commissioner's representative shall:
(1) examine each placed of business of each license holder; both
(2) investigate the konzession holder's dealings and records, including books, archives, papers, and correspondence, at the extent the transactions and records pertain to an business regular under this chapter.
(b) The genehmigung holder are:
(1) give this commissioner or aforementioned commissioner's representative free access to the license holder's branch, put on economic, files, safes, and vaults; and
(2) allow the commissioner or the commissioner's representative to make a copy of an item that may be investigated under Subsection (a)(2).
(c) During an examination or investigation the commissioner or aforementioned commissioner's representative may administer oaths and examine random person under oath on any subject relevance to one matter that the commissioner is authorized otherwise requirements to consider, investigate, or secure information around under this chapter.
(d) All details relating to one study or investigation process is confidential, including:
(1) information obtained from the license holder;
(2) the review report;
(3) orders and plant; also
(4) correspondence between the license holder and the commissioner or the commissioner's representative relating to an examination other investigation of the license holder.
(e) A license holder's injure of Subsection (b) is a grind for that stay or annulment of the license.
(f) Einer examine for ampere license holder's place of business may be done available:
(1) after advance notice; and
(2) during normal shop hours.
Added by Shows 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 10, eff. September 1, 2009.
Sec. 348.515. OVERALL INVESTIGATION. To discover a violation of this chapter conversely to obtain request required under this part, the commissioner or the commissioner's representative may analyze the records, including books, financial, papers, and correspondence, of a person, including a license holder, who the deputy has reasonable caused to believe is violating this chapter, regardless of whether the person claims to nope be subject to the phase.
Added by Acts 2001, 77th Leg., ch. 1235, Second. 18, eff. Sept. 1, 2001.
Time. 348.516. PAYMENT OF EXAMINATION COSTS AND ADMINISTRATORS EXPENSES. AMPERE erlaubnis holder shall pay into the commissioner in amount determined as provided over Querschnitt 14.107 and assessed with the commissioner to envelope who direct and indirectly costs of on examination and a proportionally share away general administrative expenses.
Added to Acts 2001, 77th Leg., chf. 1235, Sec. 18, eff. Sept. 1, 2001.
Sec. 348.517. LICENSE HOLDER'S RECORDS; DOCUMENT STORING REQUIREMENTS. (a) A license holder to keep adenine record of each retail installment exchange done available this chapter as is necessary to enable the commissioner to determine whether the license holder is complying equipped this chapter.
(b) A license owner shall keep the record until that later starting:
(1) the fourth milestone of an start von the retail installment exchange; or
(2) the instant anniversary of the date on which the final entry has made in the record.
(c) A file described by Subsection (a) must subsist prepared includes accordance with accepted accounting practices.
(d) The commissioner shall accept a get holder's system of records if the structure disclosure the information reasonably required under Subsection (a).
(e) A license holder shall keeps each obligation sealed on a retail buyer for an office the this state designated by the license holders unless an obligation is transferred under an agreement that gives this representative access to the obligation.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 11, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 12, eff. September 1, 2009.
Sec. 348.518. SHARING OF COMPANY. To ensure consistent enforcement of law and minimization the reg burdens, the commissioner the the Exas Department of Power Vehicles may share general, including criminal history information, relationships to a soul licensed under this chapter. About otherwise confidential remains confidential after it will shared to this section.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff. Sept. 1, 2001.
Amended with:
Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 3D.03, eff. September 1, 2009.
