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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.007. Applicability of Chapter

Sec. 348.007.  APPLICABILITY OF CHAPTER.  (a)  Except as otherwise provided by this section, each retail installment transaction extended to a person who is located in this state at the time the transaction is entered into is subject to this chapter.
(a-1)  A transaction in which a retail buyer purchases a towable recreation vehicle from a retail seller other than principally for the purpose of resale and agrees with the retail seller to pay part or all of the cash price in one or more deferred installments may be subject to this chapter instead of Chapter 345 at the 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(a-2)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(1), eff.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(a-2)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(2), eff. September 1, 2011.
(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)  A retail installment transaction in which a retail buyer purchases a motor vehicle that is a commercial vehicle is not subject to this chapter and is subject to Chapter 353 if the retail installment contract states that Chapter 353 applies.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.20, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 7, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 2, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 10, eff. September 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), Sec. 26(2), eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 33, 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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.008. Applicability of Other Statutes to Retail Installment Transaction

Sec. 348.008.  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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.009. Federal Disclosure Requirements Applicable

Sec. 348.009.  FEDERAL DISCLOSURE REQUIREMENTS APPLICABLE.  (a)  The disclosure requirements of Regulation Z (12 C.F.R. Parts 226 and 1026) adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and specifically 12 C.F.R. Sections 226.18(f) and 1026.18(f), regarding variable rate disclosures, apply according to their terms to retail installment transactions.
(b)  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.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 19, 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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.0091. Disclosure of Equity in Trade-in Motor Vehicle

Sec. 348.0091.  DISCLOSURE OF EQUITY IN TRADE-IN MOTOR VEHICLE.  (a)  A retail seller may not accept a trade-in motor vehicle for a motor vehicle sold under a retail installment contract unless the retail seller provides to the retail buyer, before the buyer signs the contract, a completed disclosure of trade-in equity form prescribed by this section.
(b)  The finance commission shall by rule adopt a standard form for the disclosure of the equity in a retail buyer's trade-in motor vehicle.
(c)  The form adopted by the finance commission under  Subsection (b), at a minimum, must:
(1)  contain:
(A)  the name of the retail buyer;
(B)  the name, address, and telephone number of the retail seller;
(C)  the make, model, year, and vehicle identification number of the trade-in motor vehicle;
(D)  the date of the retail installment transaction;
(E)  the amount offered by the retail seller to the retail buyer for the trade-in motor vehicle;
(F)  the amount the retail buyer owes on the trade-in motor vehicle as of the date of the retail installment transaction;
(G)  a statement indicating whether the retail buyer's equity in the trade-in motor vehicle is positive or negative;
(H)  a disclosure containing substantially similar words to the following:  "If the EQUITY amount is NEGATIVE, the value the retail seller is offering you for your trade-in motor vehicle is less than what you currently owe on your trade-in.  The amount of negative equity may be further reduced by the amount of any cash down payment and manufacturer's rebate and may be included in the amount financed under your retail installment contract as an itemized charge.";
(I)  the cash price of the vehicle being purchased under the retail installment transaction; and
(J)  the amount financed under the retail installment contract;
(2)  include a space for the signature of both the retail seller and retail buyer and the printed name of the retail seller; and
(3)  be signed and dated by the retail seller and retail buyer.
(d)  The retail seller is solely responsible for the content and delivery of the disclosure form required by Subsection (a).  An assignee of a retail installment contract may not be held responsible for a retail seller's failure to comply with the requirements of this section.
(e)  This section does not create a private right of action.  The commissioner has exclusive jurisdiction to enforce this section.
Added by Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 3, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.010. Additional Information Allowed in Contract

Sec. 348.010.  ADDITIONAL INFORMATION ALLOWED IN CONTRACT.  Information not required by this chapter may be included in a 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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.011. Order of Items in Contract

Sec. 348.011.  ORDER OF ITEMS IN CONTRACT.  Items required by this chapter to be in a retail installment contract are not required to be stated in the order set forth in 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 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.012. Applicability of Insurance Premium Financing Provisions

Sec. 348.012.  APPLICABILITY OF INSURANCE PREMIUM FINANCING PROVISIONS.  Chapter 651, Insurance Code, does not apply to a retail installment transaction.
Added by Acts 2001, 77th Leg., ch. 1235, Sec. 17, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.117, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter A. General Provisions › Section 348.014. Transaction Conditioned on Purchase of Vehicle Protection Product Prohibited

Sec. 348.014.  TRANSACTION CONDITIONED ON PURCHASE OF VEHICLE PROTECTION PRODUCT PROHIBITED.  (a)  In this section, "vehicle protection product" has the meaning assigned by Section 17.45, Business & Commerce Code.
(b)  A retail seller may not require as a condition of a retail installment transaction or the cash sale of a motor vehicle that the buyer purchase a vehicle protection product that is not installed on the vehicle at the time of the transaction.
(c)  A violation of this section is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a 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.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.101. Retail Installment Contract General Requirements

Sec. 348.101.  RETAIL INSTALLMENT CONTRACT GENERAL REQUIREMENTS.  (a)  A retail installment contract is required for each retail installment transaction.  A retail installment contract may be more than one document.
(b)  A retail installment contract must be:
(1)  in writing;
(2)  dated;
(3)  signed by the retail buyer and retail seller;  and
(4)  completed as to all essential provisions before it is signed by the retail buyer except as provided by Subsection (d).
(c)  The printed 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.
(d)  If the motor vehicle is not delivered when the retail installment contract is executed, the following information may be inserted after the contract is executed:
(1)  the identifying numbers or marks of the vehicle or similar information;  and
(2)  the due date of the first installment.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.1015. Contract Conditioned on Subsequent Assignment Prohibited

Sec. 348.1015.  CONTRACT CONDITIONED ON SUBSEQUENT ASSIGNMENT PROHIBITED.  (a)  A retail installment contract may not be conditioned on the subsequent assignment of the contract to a holder.
(b)  A provision in violation of this section is void.  This subsection does not affect the validity of other provisions of the contract that may be given effect without the voided provision, and to that extent those provisions are severable.
(c)  This section does not create a private right of action.
(d)  The commissioner has exclusive jurisdiction to enforce this section.
Added by Acts 2009, 81st Leg., R.S., Ch. 683 (H.B. 2556), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.102. Contents of Contract

Sec. 348.102.  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 or address of the retail seller;
(3)  the residence or other address of the retail buyer as specified by the retail buyer;
(4)  a description of the motor vehicle being sold;
(5)  the cash price of the retail installment transaction;
(6)  the amount of any down payment by the retail buyer, specifying the amounts paid in money and in goods traded in;  and
(7)  each itemized charge.
(b)  A charge for insurance, a service contract, or a warranty authorized by Subchapter C  may be disclosed as provided by that subchapter.
(c)  A retail installment contract that provides for a variable contract rate must set out the method by which the rate is computed.
(d)  The contract must contain substantially the following notice 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 ANY 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.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 8, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.103. Time Price Differential for Retail Installment Contract

Sec. 348.103.  TIME PRICE DIFFERENTIAL FOR RETAIL INSTALLMENT CONTRACT.  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 price differential not exceeding a yield permitted under Section 348.104, 348.105, or 348.106.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.104. Time Price Differential for Contract With Equal Monthly Successive Payments

Sec. 348.104.  TIME PRICE DIFFERENTIAL FOR CONTRACT WITH EQUAL MONTHLY SUCCESSIVE PAYMENTS.  (a)  A retail installment contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract may provide for a time price differential that does not exceed:
(1)  the add-on charge provided by this section;  or
(2)  $25 if the add-on charge under Subdivision (1) is less than $25.
(b)  The add-on charge is $7.50 per $100 per year on the principal balance for  a new motor vehicle designated by the manufacturer by a model year that is not earlier than the year in which the sale is made.
(c)  The add-on charge 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 by a model year that is not more than two years before the year in which the sale is made.
(d)  The add-on charge is $12.50 per $100 per year on the principal balance for a used motor vehicle not covered by Subsection (c) that is  a motor vehicle designated by the manufacturer by a model year that is not more than four years before the year in which 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 year on the principal balance;  or
(2)  $18 per $100 per year on the principal balance if the principal balance under the retail installment contract does not exceed $300.
(f)  The time price differential is computed on the original principal balance under the retail installment contract from the date of the contract until the maturity of the final installment, notwithstanding that the balance is payable in installments.
(g)  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.
(h)  For the purpose of a computation under this section, 16 or more days of a month may be considered a full month.
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. 5, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 11, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.105. Use of Optional Ceiling

Sec. 348.105.  USE OF OPTIONAL CEILING.  As an alternative to the maximum rate or amount authorized for a time price differential under Section 348.104 or 348.106, 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.106. Time Price Differential for Other Contracts

Sec. 348.106.  TIME PRICE DIFFERENTIAL FOR OTHER CONTRACTS.  A retail installment contract that is payable other than in substantially equal successive monthly installments 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, having due regard for the schedule of payments, 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.107. Charge for Default in Payment of Installment

Sec. 348.107.  CHARGE FOR DEFAULT IN PAYMENT OF INSTALLMENT.  (a)  A retail installment contract may provide that if an installment remains unpaid after the 15th day 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 the amount of the installment accruing after the maturity of the installment and until the installment is paid in full at a rate that does not exceed the maximum rate authorized for the contract.
(b)  A retail installment contract that provides for the accrual earnings method may provide for the delinquency charge authorized by Subsection (a)(1), the interest authorized by Subsection (a)(2), or both.
(c)  Only one delinquency charge may be collected on an installment under this section regardless of the duration of the default.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1077, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 12, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.108. Charges for Collecting Debt

Sec. 348.108.  CHARGES FOR COLLECTING DEBT.  A retail installment contract may provide for the payment of:
(1)  reasonable attorney's fees if the contract is referred for 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 incurred in connection with the repossession or sequestration of the motor vehicle securing the payment of the contract or foreclosure of a security interest in the vehicle, including the costs of storing, reconditioning, and reselling the vehicle, subject to the standards of good faith and commercial reasonableness set by Title 1, Business & Commerce Code.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.109. Acceleration of Debt Maturity

Sec. 348.109.  ACCELERATION OF DEBT MATURITY.  A retail installment contract may not authorize the holder to accelerate the maturity of all or a part of the amount owed under the contract 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 buyer's payment or performance is impaired.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 9, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 13, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.110. Delivery of Copy of Contract

Sec. 348.110.  DELIVERY OF COPY OF CONTRACT.  A 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 retail installment 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.111. Buyer's Right to Rescind Contract

Sec. 348.111.  BUYER'S RIGHT TO RESCIND CONTRACT.  Until the retail seller complies with Section 348.110, a retail buyer who has not received delivery of the motor vehicle 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 retail seller under or in contemplation of the contract or, if those goods cannot be returned, to receive the value 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.112. Buyer's Acknowledgment of Delivery of Contract Copy

Sec. 348.112.  BUYER'S ACKNOWLEDGMENT OF DELIVERY OF CONTRACT COPY.  (a)  Any 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, or underlined or otherwise conspicuously set out from the surrounding written material;  and
(2)  appear directly above the buyer's signature.
(b)  Any retail buyer's acknowledgment conforming to this section of delivery of a copy of the retail installment contract is, in an action or proceeding by or against a holder of the contract who was without knowledge to the contrary when the holder purchased it, conclusive proof:
(1)  that the copy was delivered to the buyer;
(2)  that the contract did not contain a blank space that was required to have been completed under this chapter when the contract was signed by 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.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.116. Confirmation of Amendment

Sec. 348.116.  CONFIRMATION OF AMENDMENT.  An amendment to a retail installment contract must be confirmed in a writing signed by the retail buyer.  The holder shall:
(1)  deliver a copy of the confirmation to the buyer;  or
(2)  mail a copy of the confirmation to the buyer at the buyer's most recent address shown on the records of the holder.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.117. Contract After Amendment

Sec. 348.117.  CONTRACT AFTER AMENDMENT.  After amendment the 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.118. Prepayment of Contract

Sec. 348.118.  PREPAYMENT OF CONTRACT.  A retail buyer may prepay a retail installment contract in full at any time before maturity.  This section prevails over a conflicting provision 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.119. Refund Credit on Prepayment

Sec. 348.119.  REFUND CREDIT ON PREPAYMENT.  If a retail buyer prepays a retail installment contract in full or if the holder of the contract 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 348.120 or 348.121, 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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.120. Amount of Refund Credit for Monthly Installment Contract

Sec. 348.120.  AMOUNT OF REFUND CREDIT FOR MONTHLY INSTALLMENT CONTRACT.  (a)  This section applies only to a refund credit on the prepayment of a retail installment contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract.
(b)  On a contract for a motor vehicle the minimum amount of the refund credit is computed by:
(1)  subtracting an acquisition cost of $25 from the original time price differential; and
(2)  multiplying the amount computed under Subdivision (1) by the percentage of refund computed under Subsection (d).
(c)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.
(d)  The percentage of refund is computed by:
(1)  computing the sum of all 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 payments beginning:
(A)  on 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, one month after the next monthly anniversary date of the contract occurring after the prepayment or demand.
(e)  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.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 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. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.121. Amount of Refund Credit for Other Contracts

Sec. 348.121.  AMOUNT OF REFUND CREDIT FOR OTHER CONTRACTS.  The minimum amount of the refund credit on a retail installment contract to which Section 348.120 does not apply shall be computed in a manner proportionate to the method set out by that section for the type of motor vehicle being sold, having due regard for:
(1)  the amount of each installment;
(2)  the irregularity of the installment periods;  and
(3)  the requirements of Sections 348.104(f) and 348.106.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.122. Reinstatement of Contract After Demand for Payment

Sec. 348.122.  REINSTATEMENT OF CONTRACT AFTER DEMAND FOR PAYMENT.  After a demand for payment in full under a retail installment contract, the retail buyer and holder of the contract may:
(1)  agree to reinstate the contract;  and
(2)  amend the contract as provided by Section 348.113.
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 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.123. Refinancing of Large Installment

Sec. 348.123.  REFINANCING OF LARGE INSTALLMENT.  (a)  If a scheduled installment of a retail installment contract is more than an amount equal to twice the average of all installments scheduled before that installment, other than the down payment, the retail buyer is entitled to refinance that installment:
(1)  when the installment is due;
(2)  without an acquisition cost;
(3)  in installments that are not greater or more frequent than the average amount and frequency of installments preceding that installment;  and
(4)  at a rate of time price differential that does not exceed the rate applicable to the original contract.
(b)  This section does not apply to:
(1)  a lease;
(2)  a retail installment transaction for a vehicle that is to be used primarily for a purpose other than personal, family, or household use;
(3)  a transaction for which the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the buyer;
(4)  a transaction of a type that the commissioner determines does not require the protection for the buyer provided by this section;  or
(5)  a retail installment transaction in which:
(A)  the seller is a franchised dealer licensed under Chapter 2301, Occupations Code;  and
(B)  the buyer is entitled, at the end of the term of the retail installment contract, to choose one of the following:
(i)  sell the 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 released from liability or obligation for the final scheduled payment under the contract on compliance with the agreement;
(ii)  pay the final scheduled payment under the contract;  or
(iii)  if the buyer is not in default under the contract, refinance the final scheduled payment with the holder for repayment in not fewer than 24 equal monthly installments or on other terms agreed to by the buyer and holder at the time of refinancing and at a rate of time price differential not to exceed the lesser of:
(a)  a rate equal to the maximum rate authorized under this subchapter;  or
(b)  an annual percentage rate of five percent a year more than the annual percentage rate of the original contract.
(c)  A retail installment contract under Subsection (b)(5) must disclose that any refinancing may be for any period and payment schedule to which the buyer and holder agree.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.22(a), eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 1276, Sec. 14A.774, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.124. Debt Cancellation Agreements

Sec. 348.124.  DEBT CANCELLATION AGREEMENTS.  (a)  In connection with a retail installment transaction under this chapter, a retail seller may offer to the retail buyer a debt cancellation agreement, including a guaranteed asset protection waiver or similarly named agreement.  If the retail installment transaction requires insurance coverage as part of the retail buyer's responsibility to the holder, the debt cancellation agreement, guaranteed asset protection waiver, or similarly named agreement must be offered under Chapter 354.  The retail seller may not require that the purchase of a debt cancellation agreement by the retail buyer be made in order to enter into a retail installment transaction.
(b)  A debt cancellation agreement is not considered an insurance product.
(c)  The amount charged for a debt cancellation agreement made in connection with a retail installment contract must be reasonable.
(d)  In addition to other disclosures required by state or federal law, the retail seller shall provide to the retail buyer a separate notice in connection with the retail installment contract stating that the retail buyer is not required to accept or provide a debt cancellation agreement in order to purchase the motor vehicle under a retail installment contract.
Added by Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 3, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1034 (H.B. 2931), Sec. 1, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 4, 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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.201. Property Insurance

Sec. 348.201.  PROPERTY INSURANCE.  (a)  A holder may request or require a retail buyer to insure the motor vehicle purchased under a retail installment transaction and accessories and related goods subject to the holder's security interest.
(b)  The insurance and the premiums or charges for the insurance must bear a reasonable relationship to:
(1)  the amount, term, and conditions of the retail installment contract;  and
(2)  the existing hazards or risk of loss, damage, or destruction.
(c)  The insurance may not:
(1)  cover unusual or exceptional risks;  or
(2)  provide coverage not ordinarily included in policies issued to the public.
(d)  The holder may include the cost of insurance provided under this section as a separate charge in 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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.202. Credit Life and Credit Health and Accident Insurance

Sec. 348.202.  CREDIT LIFE AND CREDIT HEALTH AND ACCIDENT INSURANCE.  (a)  As additional protection for the contract, a holder may request or require a retail buyer to provide credit life insurance and credit health and accident insurance.
(b)  As additional protection for the contract, a seller may offer involuntary unemployment insurance to the buyer at the time the contract is executed.
(c)  A holder may include the cost of insurance provided under Subsection (a) or (b), and a policy or agent fee charged in connection with insurance provided under Subsection (a) or (b), as a separate charge in the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 1107, Sec. 1, eff. June 18, 1999;  Acts 2001, 77th Leg., ch. 409, 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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.203. Maximum Amount of Credit Life and Credit Health and Accident Coverage

Sec. 348.203.  MAXIMUM AMOUNT OF CREDIT LIFE AND CREDIT HEALTH AND ACCIDENT COVERAGE.  (a)  At any time the total amount of the policies of credit life insurance in force on one retail buyer on one retail installment contract may not exceed:
(1)  the total amount repayable under the contract;  and
(2)  the greater of the scheduled or actual amount of unpaid indebtedness if the indebtedness is repayable in substantially equal installments.
(b)  At any time the total amount of the policies of credit health and accident insurance in force on one retail buyer on one retail installment contract may not exceed the total amount payable under the contract, and the amount of each periodic indemnity payment may not exceed the scheduled periodic payment on the indebtedness.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.204. Insurance Statement

Sec. 348.204.  INSURANCE STATEMENT.  (a)  If insurance is required in connection with a retail installment contract, the holder shall give to the retail buyer a written statement that clearly and conspicuously states that:
(1)  insurance is required in connection with the contract;  and
(2)  the buyer as an option may furnish the required insurance through:
(A)  an existing policy of insurance owned or controlled by the buyer;  or
(B)  an insurance policy obtained through an insurance company authorized to do business in this state.
(b)  If requested or required insurance is sold or obtained by the holder and the retail installment contract includes a premium or rate of charge for the insurance that is not fixed or approved by the commissioner of insurance, the holder shall deliver or mail to the retail buyer a written statement that includes that fact.
(c)  A statement under Subsection (a) or (b) may be provided with or as part of the retail installment contract or separately.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.205. Statement if Liability Insurance Not Included in Contract

Sec. 348.205.  STATEMENT IF LIABILITY INSURANCE NOT INCLUDED IN CONTRACT.  If liability insurance coverage for bodily injury and property damage caused to others is not included in a retail installment contract, the retail installment contract or a separate writing must contain, in at least 10-point type that is bold-faced, capitalized, underlined, or otherwise conspicuously set out from the surrounding written material, a specific statement that liability insurance coverage for bodily injury and property damage caused to others is not included.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.206. Insurance May Be Furnished by Buyer

Sec. 348.206.  INSURANCE MAY BE FURNISHED BY BUYER.  (a)  If insurance is requested or required in connection with a retail installment contract and the retail installment contract includes a premium or rate of charge that is not fixed or approved by the commissioner of insurance, the retail buyer is entitled to furnish the insurance coverage not later than the 10th day after the date of the contract or the delivery or mailing of the written statement required under Section 348.204, as appropriate, through:
(1)  an existing insurance policy owned or controlled by the buyer;  or
(2)  an insurance policy obtained from an insurance company authorized to do business in this state.
(b)  When a retail installment contract is executed, the retail buyer is entitled to purchase the insurance described by Section 348.210 and select:
(1)  the agent or broker;  and
(2)  an insurance company acceptable to the holder.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.207. Buyer's Failure to Provide Evidence of Insurance

Sec. 348.207.  BUYER'S FAILURE TO PROVIDE EVIDENCE OF INSURANCE.  (a)  If a retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the retail installment contract, the holder may:
(1)  obtain substitute insurance coverage that is substantially equal to or more limited than the coverage required;  and
(2)  add the amount of the premium advanced for the substitute insurance to the unpaid balance of the contract.
(b)  Substitute insurance coverage under Subsection (a)(1):
(1)  may at the holder's option be limited to coverage only of the interest of the holder or the interest of 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 this state.
(c)  If substitute insurance is obtained by the holder under Subsection (a), the amendment adding the premium or rescheduling the contract is not required to be signed by the retail buyer.  The holder shall deliver to the buyer or send to the buyer's most recent address shown on the records of the holder specific written notice that the holder has obtained substitute insurance.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.209. Requirements for Including Insurance Cost in Contract

Sec. 348.209.  REQUIREMENTS FOR INCLUDING INSURANCE COST IN CONTRACT.  (a)  If insurance is included as an itemized charge in a retail installment contract:
(1)  the insurance must be written:
(A)  at lawful rates;
(B)  in accordance with the Insurance Code;  and
(C)  by a company authorized to do business in this state;  and
(2)  the disclosure requirements of this section must be satisfied.
(b)  If the insurance is described by Section 348.201, 348.202, or 348.208(a), the retail installment contract must identify the:
(1)  type of the coverage;
(2)  term of the coverage;  and
(3)  amount of the premium for the coverage.
(c)  If the insurance is described by Section 348.208(a), the retail installment contract must also clearly indicate that the coverage is optional.
(d)  If the retail installment contract includes a charge described by Section 348.208(b), the retail installment contract must clearly and conspicuously disclose that the charge is included.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.210. Delivery of Insurance Document to Buyer

Sec. 348.210.  DELIVERY OF INSURANCE DOCUMENT TO BUYER.  A holder who purchases dual interest insurance on the motor vehicle shall within a reasonable time after execution of the retail installment contract send or cause to be sent to the retail buyer a policy or certificate of insurance written by an insurance company authorized to do business in this state that clearly sets forth:
(1)  the amount of the premium;
(2)  the kind of insurance provided;
(3)  the coverage of the insurance;  and
(4)  all terms, including options, limitations, restrictions, and conditions, of the policy.
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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.211. Holder's Duty if Insurance Is Adjusted or Terminated

Sec. 348.211.  HOLDER'S DUTY IF INSURANCE IS ADJUSTED OR TERMINATED.  (a)  If insurance for which a charge is included in or added to a retail installment contract is canceled, adjusted, or terminated, the holder shall, at the holder's option:
(1)  apply the amount of the refund for unearned insurance premiums received by the holder to replace required insurance coverage;  or
(2)  credit the refund to the final maturing installments of the retail installment contract.
(b)  If the amount to be applied or credited under Subsection (a) is more than the amount unpaid on the retail installment contract, the holder shall refund to the retail buyer the difference between those amounts.
(c)  A cash refund is not required under this section if the amount of the refund 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 348 - Motor Vehicle Installment Sales › Subchapter C. Insurance › Section 348.212. Gain or Advantage From Insurance Not Additional Charge

Sec. 348.212.  GAIN OR ADVANTAGE FROM INSURANCE NOT ADDITIONAL CHARGE.  Any gain or advantage to the holder or the holder's employee, officer, director, agent, general agent, affiliate, or associate from insurance or the provision or sale of insurance under this subchapter is not an additional charge or additional time price differential in connection with a retail installment contract except as specifically provided by this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.