reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.201. Definitions

Sec. 343.201.  DEFINITIONS.  In this subchapter:
(1)  "High-cost home loan" means a loan that:
(A)  is made to one or more individuals for personal, family, or household purposes;
(B)  is secured in whole or part by:
(i)  a manufactured home, as defined by Section 347.002, used or to be used as the borrower's principal residence; or
(ii)  real property improved by a dwelling designed for occupancy by four or fewer families and used or to be used as the borrower's principal residence;
(C)  has a principal amount equal to or less than one-half of the maximum conventional loan amount for first mortgages as established and adjusted by the Federal National Mortgage Association;
(D)  is not:
(i)  a reverse mortgage; or
(ii)  an open-end account, as defined by Section 301.002; and
(E)  is a credit transaction described by 12 C.F.R. Section 1026.32, as amended, except that the term includes a residential mortgage transaction, as defined by 12 C.F.R. Section 1026.2, as amended, if the total loan amount is $20,000 or more and:
(i)  the annual percentage rate exceeds the rate indicated in 12 C.F.R. Section 1026.32(a)(1)(i), as amended; or
(ii)  the total points and fees payable by the consumer at or before loan closing will exceed the amount indicated in 12 C.F.R. Section 1026.32(a)(1)(ii), as amended.
(2)  "Points and fees" has the meaning assigned by 12 C.F.R. Section 1026.32(b), as amended.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 15, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.202. Balloon Payment

Sec. 343.202.  BALLOON PAYMENT.  A high-cost home loan may not contain a provision for a scheduled payment that is more than twice as large as the average of earlier scheduled monthly payments, unless the balloon payment becomes due not less than 60 months after the date of the loan.  This prohibition does not apply if the payment schedule is adjusted to account for the seasonal or otherwise irregular income of the borrower or if the loan is a bridge loan in connection with the acquisition or construction of a dwelling intended to become the borrower's principal dwelling.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.203. Negative Amortization

Sec. 343.203.  NEGATIVE AMORTIZATION.  A high-cost home loan may not provide for a payment schedule with regular periodic payments that cause the principal balance to increase, except that this section does not prohibit negative amortization as a consequence of a temporary forbearance, bridge loan, or restructure sought by the borrower.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.204. Consideration of Obligor's Payment Ability

Sec. 343.204.  CONSIDERATION OF OBLIGOR'S PAYMENT ABILITY.  (a)  In this section, "obligor" means a person obligated to pay a loan, including a borrower, cosigner, or guarantor.  If more than one person is obligated to pay a loan, the term refers to those persons collectively.
(b)  A lender may not engage in a pattern or practice of extending credit to consumers under high-cost home loans based on the consumers' collateral without regard to the obligor's repayment ability, including the obligor's current and expected income, current obligations, employment status, and other financial resources, other than the obligor's equity in the dwelling that secures repayment of the loan.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.205. Prepayment Penalties Prohibited

Sec. 343.205.  PREPAYMENT PENALTIES PROHIBITED.  A lender may not make a high-cost home loan containing a provision for a prepayment penalty.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 343 - Home Loans › Subchapter C. High-Cost Home Loans › Section 343.206. Charge Prohibited for Product or Service Not Received

Sec. 343.206.  CHARGE PROHIBITED FOR PRODUCT OR SERVICE NOT RECEIVED.  A lender, in connection with a high-cost home loan, may not charge a borrower an amount for a service or product if the borrower does not receive the service or product.
Added by Acts 2003, 78th Leg., ch. 1207, Sec. 3, eff. Sept. 13, 2003.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.002. Goods

Sec. 345.002.  GOODS.  (a)  For the purposes of this chapter, goods are tangible personal property, other than property described by Subsection (d), that is:
(1)  purchased primarily for personal, family, or household use;  and
(2)  not purchased for commercial or business use.
(b)  "Goods" includes property described by Subsection (a) that is:
(1)  personal property furnished for or used in the modernization, rehabilitation, repair, alteration, improvement, or construction of real property that is to become or becomes a part of the real property regardless of whether the personal property is severable from the real property;
(2)  a structure, other than a mobile home, that is to be used as a residence;
(3)  a boat;
(4)  a boat-trailer;
(5)  a motor scooter, moped, motorcycle, trailer designed or intended to be drawn by or to transport a motor scooter, moped, motorcycle or all-terrain vehicle;
(6)  a recreational vehicle designed for temporary living accommodations and commonly known as a travel trailer;
(7)  a camper-type trailer;
(8)  a horse trailer;  and
(9)  a vehicle propelled or drawn exclusively by muscular power.
(c)  "Goods" also includes a merchandise certificate or coupon that is:
(1)  issued by a retail seller;
(2)  not redeemable in cash;  and
(3)  to be used in its face amount instead of cash in exchange for other goods or services sold by the seller.
(d)  This chapter does not apply to the sale of:
(1)  money;
(2)  a vehicle designed to run only on rails or tracks or in the air;  or
(3)  a motor vehicle, other than a vehicle included under Subsection (b), to which Chapter 348 applies or other goods that are included in a contract under Chapter 348.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.003. Services

Sec. 345.003.  SERVICES.  (a)  For the purposes of this chapter, services include work, labor, and other services, other than services described by Subsection (c), that are:
(1)  purchased primarily for personal, family, or household use;  and
(2)  not purchased for commercial or business use.
(b)  "Services" includes work or labor described by Subsection (a) and that is:
(1)  a medical or dental service;
(2)  a prepaid funeral benefit regulated under Chapter 154;  and
(3)  a maintenance or service contract or warranty.
(c)  This chapter does not apply to the sale of:
(1)  legal services;
(2)  services of a professional person licensed by this state, unless the services are:
(A)  provided in connection with the purchase of goods;  or
(B)  described by Subsection (b)(1) or (2);
(3)  services for which the cost is:
(A)  set by law;  or
(B)  filed with or subject to approval by the United States, this state, or an agency, instrumentality, or subdivision of this state;
(4)  educational services provided by:
(A)  an accredited college or university;  or
(B)  a primary or secondary school providing education required by this state;
(5)  services provided by a kindergarten or nursery school;  or
(6)  services that are included in a contract under Chapter 348.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.004. Cash Price

Sec. 345.004.  CASH PRICE.  (a)  The cash price in a retail installment transaction is the price at which the retail seller would have sold to the retail buyer, and the buyer would have bought from the seller, the goods or services that are subject to the transaction if the sale had been a sale for cash.
(b)  The cash price may include:
(1)  the amount of taxes;
(2)  the amount of charges for delivery, installation, servicing, repair, alteration, or improvement;  and
(3)  an amount described by Section 345.005(1), (3), (4), or (6) that is not separately itemized in the retail installment contract or retail charge agreement.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.005. Itemized Charge

Sec. 345.005.  ITEMIZED CHARGE.  An amount charged to a retail buyer in a retail installment contract or retail charge agreement is an itemized charge if the amount is not included in the cash price and is the amount of:
(1)  fees prescribed by law for filing, recording, or otherwise perfecting, releasing, or satisfying a security interest created in connection with a retail installment transaction or nonfiling insurance premiums as authorized by Section 345.212;
(2)  fees for registration or a certificate of title;
(3)  any taxes;
(4)  fees or charges prescribed by law and connected with the sale or inspection of the goods or services subject to the contract or agreement;
(5)  premiums and other charges for insurance authorized by Subchapter E;
(6)  official fees for a construction permit or the filing or recording of a construction permit;
(7)  a documentary fee authorized under Section 345.251;
(8)  in a retail installment transaction involving modernization, rehabilitation, repair, alteration, improvement, or construction of real property, reasonable and necessary costs, including amounts, paid by the holder:
(A)  for title insurance or title examination and opinion that does not exceed the amount set by the commissioner of insurance for title insurance for the transaction;
(B)  to a person who is not a salaried employee of the holder for an appraisal or inspection or for investigating the credit standing or creditworthiness of the retail buyer; or
(C)  to an attorney who is not a salaried employee of the holder as a legal fee for the preparation of documents in connection with the transaction; and
(9)  charges for a debt cancellation agreement under Chapter 354.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.006. Time Price Differential Not Interest

Sec. 345.006.  TIME PRICE DIFFERENTIAL NOT INTEREST.  An amount of time price differential is not interest.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.007. Applicability of Chapter

Sec. 345.007.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies only to a retail installment transaction.
(b)  This chapter does not affect or apply to a loan made or the business of making loans under other law of this state and does not affect a rule of law applicable to a retail installment sale that is not a retail installment transaction.
(c)  The provisions of this chapter defining specific rates and amounts of charges and requiring certain credit disclosures to be made control over any contrary law of this state respecting those subjects.
(d)  This chapter applies to a retail installment transaction extended to a person who is located in this state at the time the transaction is entered into.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 26, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.008. Applicability of Other Statutes to Retail Installment Transaction

Sec. 345.008.  APPLICABILITY OF OTHER STATUTES TO RETAIL INSTALLMENT TRANSACTION.  (a)  A loan or interest statute of this state other than Chapter 303 does not apply to a retail installment transaction.
(b)  Except as provided by this chapter, an applicable statute, including Title 1, Business & Commerce Code, or a principle of common law continues to apply to a retail installment transaction unless it is displaced by this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.009. Disclosure Requirements if Conflict With Federal Law

Sec. 345.009.  DISCLOSURE REQUIREMENTS IF CONFLICT WITH FEDERAL LAW.  If a disclosure requirement of this chapter and one of a federal law, including a regulation or an interpretation of law, are inconsistent or conflict, federal law controls and the inconsistent or conflicting disclosures required by this chapter need not be given.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.051. Retail Installment Contract General Requirements

Sec. 345.051.  RETAIL INSTALLMENT CONTRACT GENERAL REQUIREMENTS.  (a)  A retail installment contract must be:
(1)  in writing;
(2)  dated;
(3)  signed by the retail buyer;  and
(4)  completed as to all essential provisions, except as provided by Section 345.064.
(b)  The contract must be designated "Retail Installment Contract."
(c)  The printed or typed part of a retail installment contract, other than instructions for completion, must be in at least eight-point type unless a different size of type is required under this subchapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.052. Contents of Contract

Sec. 345.052.  CONTENTS OF CONTRACT.  (a)  A retail installment contract must contain:
(1)  the name of the retail seller and the name of the retail buyer;
(2)  the place of business of the retail seller;
(3)  the residence or other address of the retail buyer as specified by the retail buyer;
(4)  the cash price;
(5)  the amount of the retail buyer's down payment, specifying the amount paid in money and the amount allowed for goods traded in;  and
(6)  each itemized charge.
(b)  A charge for insurance authorized under Subchapter E  may be disclosed as provided by that subchapter.
(c)  A retail installment contract must reasonably identify the goods sold or services furnished under the contract.  Multiple items of goods or services may be described in a separate writing in detail sufficient to identify them.
(d)  The contract must contain substantially the following notice printed or typed in at least 10-point type that is bold-faced, capitalized, or underlined or otherwise conspicuously set out from the surrounding written material:
"NOTICE TO THE BUYER.  DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS BLANK SPACES.  YOU ARE ENTITLED TO A COPY OF THE CONTRACT YOU SIGN.  UNDER THE LAW YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE AND UNDER CERTAIN CONDITIONS MAY OBTAIN A PARTIAL REFUND OF THE FINANCE CHARGE.  KEEP THIS CONTRACT TO PROTECT YOUR LEGAL RIGHTS."
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.053. Disclosure of Promise to Compensate for Referral

Sec. 345.053.  DISCLOSURE OF PROMISE TO COMPENSATE FOR REFERRAL.  (a)  A written or oral promise of a retail seller to compensate a retail buyer for referring customers or prospective customers to the seller or for referring the seller to customers or prospective customers must be disclosed in a retail installment contract if the promise is:
(1)  part of the contract;
(2)  made to induce the buyer to become a party to the contract;  or
(3)  made incidental to negotiations between the seller and the buyer with respect to the sale of the goods or services that are the subject of the contract.
(b)  A contract that contains a provision required by Subsection (a) must provide that the amount owed under the contract at any time is reduced by the amount of compensation owed under the promise.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.054. Time Price Differential for Contract

Sec. 345.054.  TIME PRICE DIFFERENTIAL FOR CONTRACT.  A retail installment contract may provide for:
(1)  any amount of time price differential permitted under Section 345.055, 345.056, 345.057, or 345.058;  or
(2)  any rate of time price differential not exceeding a yield permitted under Section 345.055, 345.056, 345.057, or 345.058.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.055. Time Price Differential for Contract Payable in Equal Monthly Payments

Sec. 345.055.  TIME PRICE DIFFERENTIAL FOR CONTRACT PAYABLE IN EQUAL MONTHLY PAYMENTS.  (a)  A retail installment contract that is payable in substantially equal monthly payments beginning one month after the date of the contract may provide for a time price differential that does not exceed an add-on charge equal to:
(1)  $12 per $100 per year on the part of the principal balance that is less than or equal to the amount computed under Subchapter C, Chapter 341, using the reference amount of $500;
(2)  $10 per $100 per year on the part of the principal balance that is more than the amount computed for Subdivision (1) but less than or equal to the amount computed under Subchapter C, Chapter 341, using the reference amount of $1,000;  and
(3)  $8 per $100 per year on the part of the principal balance that is more than the amount computed for Subdivision (2).
(b)  The time price differential is computed on the original principal balance from the date of the contract until the due date of the final installment, notwithstanding that the balance is payable in installments.
(c)  If the retail installment contract is payable for a period that is shorter or longer than a year or is for an amount that is less or greater than $100, the amount of the maximum time price differential computed under this section is decreased or increased proportionately.
(d)  For the purpose of a computation under this section, 15 or more days of a month may be considered a full month.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.056. Use of Optional Ceiling

Sec. 345.056.  USE OF OPTIONAL CEILING.  As an alternative to the maximum rate or amount authorized for a time price differential under Section 345.055 or 345.057, a retail installment contract may provide for a rate or 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.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.057. Time Price Differential for Other Contracts

Sec. 345.057.  TIME PRICE DIFFERENTIAL FOR OTHER CONTRACTS.  A retail installment contract that is payable other than in substantially equal successive monthly payments or the first installment of which is not payable one month from the date of the contract may provide for a time price differential that does not exceed an amount that provides the same effective return as if the contract were payable in substantially equal successive monthly installments beginning one month from the date of the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.058. Minimum Time Price Differential for Contract

Sec. 345.058.  MINIMUM TIME PRICE DIFFERENTIAL FOR CONTRACT.  Notwithstanding Section 345.055, 345.056, or 345.057:
(1)  a retail installment contract with an initial principal balance of $75 or more may provide for a minimum time price differential that does not exceed $12;
(2)  a retail installment contract with an initial principal balance of more than $25 and less than $75 may provide for a minimum time price differential that does not exceed $9;  and
(3)  a retail installment contract with an initial principal balance of $25 or less may provide for a minimum time price differential that does not exceed $6.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.059. Principal Balance Computation

Sec. 345.059.  PRINCIPAL BALANCE COMPUTATION.  The principal balance of a retail installment contract is computed by:
(1)  adding the cash price subject to the contract and the total of the contract's itemized charges, including a documentary fee authorized under Section 345.251;  and
(2)  subtracting the amount of the retail buyer's down payment in money and goods from the amount computed under Subdivision (1).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.060. Charges for Default in Payment of Installment

Sec. 345.060.  CHARGES FOR DEFAULT IN PAYMENT OF INSTALLMENT.  (a)  A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment the retail seller may collect:
(1)  a delinquency charge that is not more than five percent of an installment or $5, whichever is less;  or
(2)  interest on the amount of the installment accruing after the maturity of the installment at a rate that does not exceed the maximum rate authorized for the contract.
(b)  Only one delinquency charge may be collected under Subsection (a) on an installment regardless of the duration of the default.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.061. Charges for Collecting Debt

Sec. 345.061.  CHARGES FOR COLLECTING DEBT.  A retail installment contract may provide for the payment of:
(1)  an attorney's reasonable fees if the contract is referred for collection to an attorney who is not a salaried employee of the holder;  and
(2)  court costs and disbursements.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.062. Acceleration of Debt Maturity

Sec. 345.062.  ACCELERATION OF DEBT MATURITY.  A retail installment contract or retail charge agreement may not authorize the holder to accelerate the maturity of all or a part of the amount owed under the contract or agreement unless:
(1)  the retail buyer is in default in the performance of any of the buyer's obligations;  or
(2)  the holder believes in good faith that the prospect of the buyer's payment or performance is impaired.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.063. Requirements for Contract That Is More Than One Document

Sec. 345.063.  REQUIREMENTS FOR CONTRACT THAT IS MORE THAN ONE DOCUMENT.  (a)  A retail installment contract may be more than one document.
(b)  One of the retail installment contract documents must:
(1)  provide that it applies to purchases of goods or services to be made by the retail buyer from time to time;  and
(2)  be signed by the retail buyer.
(c)  For each purchase, the document described by Subsection (b) and a written statement relating to the purchase, including a sales slip or account book, together must set forth all of the information required by this subchapter.  The document described by Subsection (a) and the written statement under this subsection are the retail installment contract.
(d)  If the retail seller elects, a written statement described by Subsection (c) satisfies the statement requirements of Section 345.082 for a purchase to which the statement applies.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.064. Completion of Contract

Sec. 345.064.  COMPLETION OF CONTRACT.  (a)  A person may not sign a retail installment contract that contains a blank space for an item that is an essential provision of the transaction.
(b)  If delivery of the goods is not made at the time the contract is executed, the identifying numbers or marks of the goods or similar information and the due date of the first installment may be inserted by the retail seller in the seller's counterpart of the contract after the contract has been signed by the retail buyer.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.065. Delivery of Copy of Contract

Sec. 345.065.  DELIVERY OF COPY OF CONTRACT.  The retail seller shall:
(1)  deliver to the retail buyer a copy of the retail installment contract as accepted by the retail seller;  or
(2)  mail to the retail buyer at the address shown on the contract a copy of the retail installment contract as accepted by the retail seller.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.066. Buyer's Right to Rescind Contract

Sec. 345.066.  BUYER'S RIGHT TO RESCIND CONTRACT.  Until a retail seller complies with Section 345.065, a retail buyer who has not received delivery of the goods or services is entitled to:
(1)  rescind the contract;
(2)  receive a refund of all payments made under or in contemplation of the contract;  and
(3)  receive the return of all goods traded in to the seller under or in contemplation of the contract or, if those goods cannot be returned, receive the trade-in allowance of those goods.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.067. Buyer's Acknowledgment of Delivery of Contract Copy

Sec. 345.067.  BUYER'S ACKNOWLEDGMENT OF DELIVERY OF CONTRACT COPY.  (a)  Any retail buyer's acknowledgment of delivery of a copy of a retail installment contract must:
(1)  be in at least 10-point type that is bold-faced, capitalized, or underlined or otherwise conspicuously set out from the surrounding written material;  and
(2)  appear directly above the buyer's signature if the acknowledgment is contained in the contract.
(b)  Any retail buyer's acknowledgment conforming to this section of the delivery of a copy of the retail installment contract is, in any action or proceeding:
(1)  presumptive proof of the delivery of a copy of the contract and compliance with any requirement relating to the completion of the contract before execution of the contract by the buyer;  or
(2)  conclusive proof of the delivery of a copy of the contract and compliance with any requirement relating to the completion of the contract before execution of the contract by the buyer if the holder purchased the contract without knowledge to the contrary.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.068. Bailment or Lease as Retail Installment Transaction

Sec. 345.068.  BAILMENT OR LEASE AS RETAIL INSTALLMENT TRANSACTION.  A bailment or lease is a retail installment transaction if the bailee or lessee:
(1)  contracts to pay as compensation for the use of goods an amount that substantially equals or exceeds the value of those goods;  and
(2)  on full compliance with the bailment or lease is bound to become the owner of the goods or has the option to become the owner of the goods for no or nominal additional consideration.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.069. Deferment of Installment

Sec. 345.069.  DEFERMENT OF INSTALLMENT.  (a)  A holder of a retail installment contract, on request of the retail buyer, may agree to defer the scheduled due date of all or part of one or more installments.
(b)  A holder may collect from the retail buyer for deferment of an installment:
(1)  a charge that is a part of the time price differential and computed on the amount deferred for the period of deferment at the monthly rate of 15 cents for each $10;  and
(2)  the amount of the additional cost to the holder for:
(A)  premiums for continuing in force any insurance provided for by the contract;  and
(B)  additional necessary official fees.
(c)  The minimum charge under Subsection (b)(1) is $1.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.070. Amendment of Contract

Sec. 345.070.  AMENDMENT OF CONTRACT.  (a)  On request of the retail buyer, the holder of a retail installment contract may:
(1)  amend the contract to renew, restate, or reschedule the unpaid balance of the contract;  and
(2)  collect an amount computed on the principal balance of the amended contract for the term of the amended contract at the applicable rate under Section 345.055, 345.056, 345.057, or 345.058.
(b)  The principal balance of the amended contract is computed by:
(1)  adding:
(A)  the amount of the unpaid balance on the date of the amendment;
(B)  the cost of insurance;
(C)  the amount of each additional necessary official fee;  and
(D)  the amount of each accrued delinquency charge;  and
(2)  subtracting from the total computed under Subdivision (1) an amount equal to the minimum refund credit that would be required under Section 345.075 or 345.076 for prepayment in full on the date of the amendment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.071. Confirmation of Amendment

Sec. 345.071.  CONFIRMATION OF AMENDMENT.  An amendment to a retail installment contract must be confirmed in a writing signed by the retail buyer.  The holder shall deliver a copy of the confirmation to the buyer at the time it is executed.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.072. Contract After Amendment

Sec. 345.072.  CONTRACT AFTER AMENDMENT.  After amendment a retail installment contract is the original contract and each amendment to the original contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.073. Prepayment of Contract

Sec. 345.073.  PREPAYMENT OF CONTRACT.  A retail buyer may prepay the unpaid time balance of a retail installment contract in full at any time before the contract's final due date.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.074. Refund Credit on Prepayment

Sec. 345.074.  REFUND CREDIT ON PREPAYMENT.  If a retail buyer prepays a retail installment contract in full or if the holder demands payment of the unpaid balance of the contract in full before the contract's final installment is due, the buyer is entitled to receive a refund credit as provided by Section 345.075 or 345.076, as applicable.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.075. Amount of Refund Credit for Monthly Installment Contract

Sec. 345.075.  AMOUNT OF REFUND CREDIT FOR MONTHLY INSTALLMENT CONTRACT.  (a)  The minimum amount of a refund credit on prepayment of a contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract is computed by:
(1)  subtracting an amount equal to the minimum charge authorized by this chapter for that contract from the original time price differential;  and
(2)  multiplying the amount computed under Subdivision (1) by the percentage computed by dividing the sum of all of the monthly balances under the contract's schedule of payments into the sum of the unpaid monthly balances under the contract's schedule of payments beginning on:
(A)  the first day, after the date of the prepayment or demand for payment in full, that is the date of a month that corresponds to the date of the month that the first installment is due under the contract;  or
(B)  if the prepayment or demand for payment in full is made before the first installment date under the contract, the next monthly anniversary date of the contract occurring after prepayment or demand.
(b)  A refund credit is not required if the amount of the refund credit is less than $1.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.076. Amount of Refund Credit for Other Contracts

Sec. 345.076.  AMOUNT OF REFUND CREDIT FOR OTHER CONTRACTS.  The refund credit on a contract to which Section 345.075 does not apply shall be computed in a manner proportionate to the method set out by that section, having due regard for:
(1)  the amount of each installment;  and
(2)  the irregularity of the installment periods.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.077. Reinstatement of Contract

Sec. 345.077.  REINSTATEMENT OF CONTRACT.  After a demand for payment in full under a retail installment contract, the retail buyer and holder may agree to reinstate the contract and may amend the contract under Section 345.070.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.078. Consolidation of Contracts

Sec. 345.078.  CONSOLIDATION OF CONTRACTS.  (a)  If a retail buyer purchases goods or services in a retail installment transaction from a retail seller from whom the buyer has previously purchased goods or services under one or more retail installment contracts and the amounts under those contracts have not been paid in full, the seller may consolidate the subsequent purchase with one or more of the contracts.
(b)  If a purchase is consolidated with a retail installment contract under this section, the retail seller may prepare a written memorandum of the subsequent purchase instead of executing a retail installment contract for the purchase.  Sections 345.051, 345.052, 345.053, 345.065, 345.066, and 345.067 do not apply to the memorandum.  The seller shall deliver a copy of the memorandum to the retail buyer before the date on which the first installment under the consolidated contract is due.
(c)  Each subsequent purchase that is consolidated with a retail installment contract is a separate retail installment contract under this chapter.  The provisions of this chapter relating to a retail installment contract apply to the subsequent purchase except as provided by Subsection (b).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.079. Allocation of Payments on Consolidation of Contracts

Sec. 345.079.  ALLOCATION OF PAYMENTS ON CONSOLIDATION OF CONTRACTS.  (a)  If a subsequent purchase is consolidated with a contract and the retail seller retains title or takes a security interest, including a lien, in any of the goods purchased under one of the contracts:
(1)  the total of all payments made before the subsequent purchase is considered to have been applied to the previous purchases;  and
(2)  each payment made on the consolidated contract after the subsequent purchase is considered to be allocated to each purchase in the same ratio as the original cash price of the purchase bears to the total of the original cash prices of all purchases under the contract.
(b)  All of a down payment on a subsequent purchase shall be allocated to that purchase.
(c)  If the amount of installment payments is increased after a subsequent purchase, the retail seller may elect to allocate:
(1)  an amount of the payment equal to the original periodic payment to the previous purchase;  and
(2)  the remainder of the payment to the subsequent purchase.
(d)  This section does not apply if the previous and subsequent purchases involve:
(1)  goods, including equipment or parts, attached or affixed to goods previously purchased and for which full payment has not been made;  or
(2)  services rendered by the retail seller at the retail buyer's request in connection with goods described by Subdivision (1).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.080. Obligation Under More Than One Contract

Sec. 345.080.  OBLIGATION UNDER MORE THAN ONE CONTRACT.  (a)  A retail seller may not induce a person or a husband and wife to become obligated at substantially the same time under more than one retail installment contract with the same seller for the deliberate purpose of obtaining a greater amount of time price differential than is permitted under this chapter for one retail installment contract.
(b)  A contract made by a retail buyer and retail seller after the 30th day after the date of a contract between that buyer and seller is presumed not to violate this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.081. Certificate of Completion or Satisfaction of Contract

Sec. 345.081.  CERTIFICATE OF COMPLETION OR SATISFACTION OF CONTRACT.  (a)  A retail seller who has entered into a retail installment transaction under a retail installment contract to perform services or install goods for the modernization, rehabilitation, repair, alteration, improvement, or construction of improvements on real property shall obtain a certificate of completion or certificate of satisfaction signed by the retail buyer when all of the services have been performed or goods have been installed as required under the contract.  A certificate is required regardless of whether a guaranty or warranty of the services or goods remains in force.
(b)  A certificate of completion or certificate of satisfaction must be a separate writing and must have at the top in at least 10-point type that is bold-faced, capitalized, or underlined or otherwise conspicuously set out from the surrounding written material:
WARNING TO BUYER--DO NOT SIGN THIS CERTIFICATE UNTIL ALL SERVICES HAVE BEEN SATISFACTORILY PERFORMED AND MATERIALS SUPPLIED OR GOODS RECEIVED AND FOUND SATISFACTORY.
(c)  The retail seller shall keep the signed certificate or a copy of the signed certificate until the second anniversary of the date of the certificate's execution.
(d)  If performance of the services or installation of the goods required by the retail installment contract is not complete, a retail seller may not knowingly:
(1)  induce a retail buyer to sign a certificate;  or
(2)  take or accept from the retail buyer an executed certificate.
(e)  Execution of a certificate by the retail buyer is not a waiver of any guaranty or warranty made by the retail seller or a manufacturer or supplier.
(f)  A retail buyer's failure or refusal to execute a certificate, without good cause, does not affect the validity of the retail installment contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.082. Statement of Payments and Amount Due Under Contract

Sec. 345.082.  STATEMENT OF PAYMENTS AND AMOUNT DUE UNDER CONTRACT.  (a)  On written request of a retail buyer, the holder of a retail installment contract shall give or send to the buyer a written statement of the dates and amounts of installment payments and the total amount unpaid under the contract.
(b)  A retail buyer is entitled to one statement without charge during a six-month period.  The charge for each additional requested statement during the period may not exceed $1.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter B. Retail Installment Contract › Section 345.083. Receipt for Cash Payment

Sec. 345.083.  RECEIPT FOR CASH PAYMENT.  A holder of a retail installment contract shall give to the retail buyer a written receipt for each cash payment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.