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 353 - Commercial Motor Vehicle Installment Sales › Subchapter E. Holder's Rights, Duties, and Limitations › Section 353.409. Buyer's Waiver

Sec. 353.409.  BUYER'S WAIVER.  (a)  A retail installment contract may not:
(1)  provide for a waiver of the retail buyer's rights of action against the holder or a person acting on the holder's behalf for an illegal act committed in:
(A)  the collection of payments under the contract; or
(B)  the repossession of the commercial vehicle; or
(2)  provide that the retail buyer agrees not to assert against the holder a claim or defense arising out of the sale.
(b)  An act or agreement of the retail buyer before or at the time of the making of a retail installment contract or a purchase under the contract does not waive any provision of this chapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter E. Holder's Rights, Duties, and Limitations › Section 353.410. Transfer of Equity

Sec. 353.410.  TRANSFER OF EQUITY.  (a)  With the written consent of the holder, a retail buyer may transfer at any time the buyer's equity in the commercial vehicle subject to the retail installment contract to another person.
(b)  The holder may charge for the transfer of equity an amount that does not exceed:
(1)  $25 for a commercial vehicle that is not a heavy commercial vehicle; or
(2)  $50 for a heavy commercial vehicle.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.501. License Required

Sec. 353.501.  LICENSE REQUIRED.  (a)  A person may not act as a holder under this chapter unless the person:
(1)  is an authorized lender or a credit union; or
(2)  holds a license issued under Chapter 348 or this chapter.
(b)  A person who is required to hold a license under this chapter must ensure that each office at which retail installment transactions are made, serviced, held, or collected under this chapter is licensed or otherwise authorized to make, service, hold, or collect retail installment transactions in accordance with this chapter and rules implementing this chapter.
(c)  A person may not use any device, subterfuge, or pretense to evade the application of this section.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.502. Application Requirements

Sec. 353.502.  APPLICATION REQUIREMENTS.  (a)  The application for a license under this chapter must:
(1)  be under oath;
(2)  identify the applicant's principal parties in interest; and
(3)  contain other relevant information that the commissioner requires.
(b)  On the filing of a license application, the applicant shall pay to the commissioner:
(1)  an investigation fee not to exceed $200; and
(2)  a license fee in an amount determined as provided by Section 14.107.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 56, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.503. Investigation of Application

Sec. 353.503.  INVESTIGATION OF APPLICATION.  On the filing of an application and payment of the required fees, the commissioner shall conduct an investigation to determine whether to issue the license.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.504. Approval or Denial of Application

Sec. 353.504.  APPROVAL OR DENIAL OF APPLICATION.  (a)  The commissioner shall approve the application and issue to the applicant a license under this chapter if the commissioner finds that the financial responsibility, experience, character, and general fitness of the applicant are sufficient to:
(1)  command the confidence of the public; and
(2)  warrant the belief that the business will be operated lawfully and fairly, within the purposes of this chapter.
(b)  If the commissioner does not find the eligibility requirements of Subsection (a), the commissioner shall notify the applicant.
(c)  If an applicant requests a hearing on the application not later than the 30th day after the date of notification under Subsection (b), the applicant is entitled to a hearing not later than the 60th day after the date of the request.
(d)  The commissioner shall approve or deny the application not later than the 60th day after the date of the filing of a completed application with payment of the required fees, or if a hearing is held, after the date of the completion of the hearing on the application. The commissioner and the applicant may agree to a later date in writing.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.505. Disposition of Fees on Denial of Application

Sec. 353.505.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the application.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.5055. License Term

Sec. 353.5055.  LICENSE TERM.  A license issued under this chapter is valid for the period prescribed by finance commission rule adopted under Section 14.112.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 57, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.506. License Fee

Sec. 353.506.  LICENSE FEE.  Not later than the 30th day before the date the license expires, a license holder shall pay to the commissioner for each license held a fee in an amount determined as provided by Section 14.107.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 58, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.5065. Grounds for Refusal of Renewal

Sec. 353.5065.  GROUNDS FOR REFUSAL OF RENEWAL.  The commissioner may refuse to renew the license of a person who fails to comply with an order issued by the commissioner to enforce this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 59, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.507. Expiration of License on Failure to Pay Fee

Sec. 353.507.  EXPIRATION OF LICENSE ON FAILURE TO PAY FEE.  If the fee for a license is not paid before the 16th day after the date on which the written notice of delinquency of payment has been given to the license holder, the license expires on that day.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 60, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.508. License Suspension or Revocation

Sec. 353.508.  LICENSE SUSPENSION OR REVOCATION.  After notice and opportunity for a hearing, the commissioner may suspend or revoke a license if the commissioner finds that:
(1)  the license holder failed to pay the license fee, an investigation fee, or another charge imposed by the commissioner;
(2)  the license holder, knowingly or without the exercise of due care, violated this chapter or a rule adopted or order issued under this chapter; or
(3)  a fact or condition exists that, if it had existed or had been known to exist at the time of the original application for the license, clearly would have justified the commissioner's denial of the application.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 61, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.509. Reinstatement of Suspended License; Issuance of New License After Revocation

Sec. 353.509.  REINSTATEMENT OF SUSPENDED LICENSE; ISSUANCE OF NEW LICENSE AFTER REVOCATION.  The commissioner may reinstate a suspended license or issue a new license on application to a person whose license has been revoked if at the time of the reinstatement or issuance no fact or condition exists that clearly would have justified the commissioner's denial of an original application for the license.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.510. Surrender of License

Sec. 353.510.  SURRENDER OF LICENSE.  A license holder may surrender a license issued under this chapter by complying with the commissioner's written instructions relating to license surrender.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 25, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.511. Effect of License Suspension, Revocation, or Surrender

Sec. 353.511.  EFFECT OF LICENSE SUSPENSION, REVOCATION, OR SURRENDER.  (a)  The suspension, revocation, or surrender of a license issued under this chapter does not affect the obligation of a contract between the license holder and a retail buyer entered into before the suspension, revocation, or surrender.
(b)  Surrender of a license does not affect the license holder's civil or criminal liability for an act committed before surrender.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.512. Transfer or Assignment of License

Sec. 353.512.  TRANSFER OR ASSIGNMENT OF LICENSE.  A license may be transferred or assigned only with the approval of the commissioner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.513. Adoption of Rules

Sec. 353.513.  ADOPTION OF RULES.  (a)  The finance commission may adopt rules to enforce this chapter.
(b)  The commissioner shall recommend proposed rules to the finance commission.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.514. General Investigation

Sec. 353.514.  GENERAL INVESTIGATION.  To discover a violation of this chapter or to obtain information required under this chapter, the commissioner or the commissioner's representative may investigate the records, including books, accounts, papers, and correspondence, of a person, including a license holder, who the commissioner has reasonable cause to believe is violating this chapter, regardless of whether the person claims to not be subject to this chapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 353 - Commercial Motor Vehicle Installment Sales › Subchapter F. Licensing; Administration of Chapter › Section 353.515. Sharing of Information

Sec. 353.515.  SHARING OF INFORMATION.  To ensure consistent enforcement of law and minimization of regulatory burdens, the commissioner and the Texas Department of Motor Vehicles may share information, including criminal history information, relating to a person licensed under this chapter.  Information otherwise confidential remains confidential after it is shared under this section.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, 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 354 - Debt Cancellation Agreements for Certain Retail Vehicle Installment Sales › Section 354.001. Definitions

Sec. 354.001.  DEFINITIONS.  In this chapter:
(1)  "Contract" means a retail installment contract made under Chapter 345 or 348.
(2)  "Covered vehicle" includes a self-propelled or towed vehicle designed for personal use, including an automobile, truck, motorcycle, recreational vehicle, all-terrain vehicle, snowmobile, camper, boat, personal watercraft, and personal watercraft trailer.
(3)  "Debt cancellation agreement" means a contract term or a contractual arrangement modifying a contract term under which a retail seller or holder agrees to cancel all or part of an obligation of the retail buyer to repay an extension of credit from the retail seller or holder on the occurrence of the total loss or theft of the covered vehicle that is the subject of the contract but does not include an offer to pay a specified amount on the total loss or theft of the covered vehicle.
(4)  "Holder" means a person who is:
(A)  a retail seller; or
(B)  the assignee or transferee of a contract.
(5)  "Retail buyer" means a person who purchases or agrees to purchase a covered vehicle from a retail seller in a retail installment transaction.
(6)  "Retail seller" means a person in the business of selling covered vehicles to retail buyers in retail installment transactions.
Redesignated and amended from Finance Code, Subchapter G, Chapter 348 by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 6, 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 354 - Debt Cancellation Agreements for Certain Retail Vehicle Installment Sales › Section 354.002. Limitation on Certain Debt Cancellation Agreements

Sec. 354.002.  LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.  (a)  This chapter applies only to a debt cancellation agreement that includes insurance coverage as part of the retail buyer's responsibility to the holder.
(b)  The amount charged for a debt cancellation agreement made in connection with a contract may not exceed five percent of the amount financed pursuant to the contract.  Section 348.124(c) does not apply to a debt cancellation agreement regulated under this chapter.
(c)  The debt cancellation agreement becomes a part of or a separate addendum to the contract and remains a term of the contract on the assignment, sale, or transfer by the holder.
(d)  A debt cancellation agreement to which this chapter applies is not insurance.
Redesignated and amended from Finance Code, Subchapter G, Chapter 348 by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 6, 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 354 - Debt Cancellation Agreements for Certain Retail Vehicle Installment Sales › Section 354.003. Debt Cancellation Agreements Exclusion Language

Sec. 354.003.  DEBT CANCELLATION AGREEMENTS EXCLUSION LANGUAGE.  (a)  In addition to the provisions required by Section 354.004, a debt cancellation agreement must fully disclose all provisions permitting the exclusion of loss or damage including, if applicable:
(1)  an act occurring after the original maturity date or date of the holder's acceleration of the contract;
(2)  any dishonest, fraudulent, illegal, or intentional act of any authorized driver that directly results in the total loss of the covered vehicle;
(3)  any act of gross negligence by an authorized driver that directly results in the total loss of the covered vehicle;
(4)  conversion, embezzlement, or concealment by any person in lawful possession of the covered vehicle;
(5)  lawful confiscation by an authorized public official;
(6)  the operation, use, or maintenance of the covered vehicle in any race or speed contest;
(7)  war, whether or not declared, invasion, insurrection, rebellion, revolution, or an act of terrorism;
(8)  normal wear and tear, freezing, or mechanical or electrical breakdown or failure;
(9)  use of the covered vehicle for primarily commercial purposes;
(10)  damage that occurs after the covered vehicle has been repossessed;
(11)  damage to the covered vehicle before the purchase of the debt cancellation agreement;
(12)  unpaid insurance premiums and salvage, towing, and storage charges relating to the covered vehicle;
(13)  damage related to any personal property attached to or within the covered vehicle;
(14)  damages associated with falsification of documents by any person not associated with the retail seller or other person canceling the retail buyer's obligation;
(15)  any unpaid debt resulting from exclusions in the retail buyer's primary physical damage coverage not included in the debt cancellation agreement;
(16)  abandonment of the covered vehicle by the retail buyer only if the retail buyer voluntarily discards, leaves behind, or otherwise relinquishes possession of the covered vehicle to the extent that the relinquishment shows intent to forsake and desert the covered vehicle so that the covered vehicle may be appropriated by any other person;
(17)  any amounts deducted from the primary insurance carrier's settlement due to prior damages; and
(18)  any loss occurring outside the United States or outside the United States and Canada.
(b)  An exclusion of loss or damage not listed in Subsection (a) may be included in a debt cancellation agreement only if the exclusion is disclosed in plain, easy to read language.
Redesignated and amended from Finance Code, Subchapter G, Chapter 348 by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 6, 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 354 - Debt Cancellation Agreements for Certain Retail Vehicle Installment Sales › Section 354.005. Approval of Forms for Debt Cancellation Agreements

Sec. 354.005.  APPROVAL OF FORMS FOR DEBT CANCELLATION AGREEMENTS.  (a)  Debt cancellation agreement forms must be submitted to the commissioner for approval.  Debt cancellation agreement forms may include additional language to supplement the terms of the debt cancellation agreement as required by this chapter.
(b)  If a debt cancellation agreement form is provided to the commissioner for approval, the commissioner has 45 days to approve the form or deny approval of the form.  On the written request of the person submitting the form, the commissioner may agree in writing to extend the approval period for an additional 45 days.  If after the 45th day, or the 90th day if the commissioner agrees to an extension, the commissioner does not deny the form, the form is considered approved.
(c)  If the debt cancellation agreement form is approved by the commissioner or considered approved as provided by Subsection (b), the terms of the debt cancellation agreement are considered to be in compliance with this chapter.
(d)  The commissioner may deny approval of a form only if the form excludes the language required by Sections 354.003 and 354.004 or contains any inconsistent or misleading provisions.  All form denials, after an opportunity for a hearing under Chapter 2001, Government Code, may be appealed to a district court in accordance with that chapter.
(e)  If after approval of a form the Office of Consumer Credit Commissioner discovers that approval could have been denied under Subsection (d), the commissioner may order a retail seller, any administrator of the debt cancellation agreement, or a holder to submit a corrected form for approval.  Beginning as soon as reasonably practicable after approval of the corrected form, the retail seller, administrator, or holder shall use the corrected form for all sales.
(f)  A debt cancellation agreement form that has been approved by the commissioner is public information subject to disclosure under Chapter 552, Government Code.  Section 552.110, Government Code, does not apply to a form approved under this chapter.
Redesignated and amended from Finance Code, Subchapter G, Chapter 348 by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 6, eff. September 1, 2017.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 62, 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 354 - Debt Cancellation Agreements for Certain Retail Vehicle Installment Sales › Section 354.006. Additional Requirements for Debt Cancellation Agreements

Sec. 354.006.  ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS.  (a)  If a retail buyer purchases a debt cancellation agreement, the retail seller must provide to the retail buyer a true and correct copy of the agreement not later than the 10th day after the date of the contract.
(b)  A holder must comply with the terms of a debt cancellation agreement not later than the 60th day after the date of receipt of all necessary information required by the holder or administrator of the agreement to process the request.
(c)  A debt cancellation agreement may not knowingly be offered by a retail seller if:
(1)  the contract is already protected by gap insurance; or
(2)  the purchase of the debt cancellation agreement is required for the retail buyer to obtain the extension of credit.
(d)  This section does not apply to a debt cancellation agreement offered in connection with the purchase of a commercial vehicle.
(e)  The sale of a debt cancellation agreement must be for a single payment.
(f)  A holder that offers a debt cancellation agreement must report the sale of and forward money received on all such agreements to any designated party as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy, or other specified program documents.
(g)  Money received or held by a holder or any administrator of a debt cancellation agreement and belonging to an insurance company, holder, or administrator under the terms of a written agreement must be held by the holder or administrator in a fiduciary capacity.
(h)  A retail seller that negotiates a debt cancellation agreement and subsequently assigns the contract shall:
(1)  maintain documents relating to the agreement that come into the retail seller's possession; and
(2)  on request of the Office of Consumer Credit Commissioner, cooperate in requesting and obtaining access to documents relating to the agreement not in the retail seller's possession.
Redesignated and amended from Finance Code, Subchapter G, Chapter 348 by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 6, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.001. Short Title

Sec. 371.001.  SHORT TITLE.  This chapter shall be known and may be cited as the "Texas Pawnshop Act."
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.002. Purposes

Sec. 371.002.  PURPOSES.  The purposes of this chapter are to:
(1)  prevent fraud, unfair practices, discrimination, imposition, and abuse of state residents;
(2)  exercise the state's police power to ensure a sound system of making pawn loans and transfers of personal property by and through pawnshops;
(3)  prevent transactions in stolen property and other unlawful property transactions by licensing and regulating pawnbrokers;
(4)  provide for licensing and investigation fees;
(5)  provide minimum capital requirements for pawnbrokers;
(6)  ensure financial responsibility to the state and its residents and compliance with federal, state, and local law, including rules and ordinances; and
(7)  assist local governments in the exercise of their police power.
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. 63, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.003. Definitions

Sec. 371.003.  DEFINITIONS.  In this chapter:
(1)  "Applicable liabilities" include trade or other accounts payable;  accrued sales, income, or other taxes;  accrued expenses;  and notes or other payables that are unsecured or secured in whole or part by current assets.  The term does not include a liability secured by assets other than current assets.
(2)  "Commissioner" means the consumer credit commissioner.
(3)  "Current assets" include an investment made in cash, bank deposits, merchandise inventory, and loans due from customers, excluding the pawn service charge.  The term does not include an investment made in:
(A)  fixed assets of real estate, furniture, fixtures, or equipment;
(B)  stocks, bonds, or other securities;  or
(C)  prepaid expenses or other general intangibles.
(4)  "Goods" means tangible personal property.
(5)  "Net assets" means the book value of current assets less applicable liabilities.
(6)  "Pawnbroker" means a person engaged in the business of:
(A)  lending money on the security of pledged goods;  or
(B)  purchasing goods on condition that the goods may be redeemed or repurchased by the seller for a fixed price within a fixed period.
(7)  "Pawnshop" means a location at which or premises in which a pawnbroker regularly conducts business.
(8)  "Pawn transaction" means the pledging, by a person present in this state at the time of the transaction, with a pawnbroker of a single item of goods as security for a loan of money.
(9)  "Pledged goods" means goods deposited with or otherwise delivered into the possession of a pawnbroker in connection with a pawn transaction.
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. 64, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.004. Computation of Month

Sec. 371.004.  COMPUTATION OF MONTH.  (a)  For the computation of time in this chapter, a month is the period from a date in a month to the corresponding date in the succeeding month.  If the succeeding month does not have a corresponding date, the period ends on the last day of the succeeding month.
(b)  For the computation of a fraction of a month, a day is equal to one-thirtieth of a 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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.005. Regulatory Authority

Sec. 371.005.  REGULATORY AUTHORITY.  The legislature has exclusive authority regarding the operation of pawnshops, except for a matter delegated by this chapter to the commissioner.  The commissioner has the authority to regulate only a business practice that requires a pawnshop license.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 801, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.006. Rulemaking

Sec. 371.006.  RULEMAKING.  (a)  The Finance Commission of Texas may adopt rules to enforce this chapter.
(b)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3), eff. September 1, 2023.
(c)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3), eff. September 1, 2023.
(d)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3), eff. September 1, 2023.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 801, Sec. 2, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 867, Sec. 99, eff. Sept. 1, 2001.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 34(3), eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter A. General Provisions › Section 371.007. Staggered Renewal of Licenses

Sec. 371.007.  STAGGERED RENEWAL OF LICENSES.  (a)  The Finance Commission of Texas by rule may adopt a system under which licenses issued under this chapter expire on various dates during the year.
(b)  For a year in which an expiration date is changed, a license fee payable on the date of issuance shall be prorated according to the number of months during which the license is valid.
(c)  On renewal of a license on the new expiration date, the total license fee is payable.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 100, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.051. Pawnshop License Required

Sec. 371.051.  PAWNSHOP LICENSE REQUIRED.  A person may not engage in business as a pawnbroker unless the person holds a pawnshop license.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.052. Eligibility

Sec. 371.052.  ELIGIBILITY.
(a)  To be eligible for a pawnshop license, an applicant must:
(1)   meet the net assets requirement of Section 371.072; and
(2)  show that:
(A)  the pawnshop will be operated lawfully and fairly under this chapter; and
(B)  the applicant or the applicant's owners and managers have the financial responsibility, experience, character, and general fitness to command the confidence of the public in the pawnshop's operations.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 95(2), eff. September 1, 2019.
(c)  For purposes of a disqualification under Chapter 53, Occupations Code, the commissioner is a licensing authority.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 14.748, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 65, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 95(2), eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.053. Verification of Applicant's Net Assets

Sec. 371.053.  VERIFICATION OF APPLICANT'S NET ASSETS.  If the commissioner cannot verify that an applicant meets the net assets requirement of Section 371.072, the commissioner may require a finding, including a current balance sheet, by an independent certified public accountant that:
(1)  the accountant has reviewed the applicant's books and records;  and
(2)  the applicant meets the net assets requirement.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.054. License Application

Sec. 371.054.  LICENSE APPLICATION.  (a)  This section applies to an application for:
(1)  an original pawnshop license;
(2)  relocation of a pawnshop;  or
(3)  transfer of a pawnshop license and approval of a change in the ownership of a pawnshop.
(b)  An application must be made to the commissioner and must:
(1)  be under oath;
(2)  state:
(A)  the full name and place of residence of the applicant;
(B)  the full name and address of each member if the applicant is a partnership;
(C)  except as provided by Subsection (c), the full name and address of each officer, shareholder, and director if the applicant is a corporation;
(D)  the location where the business is to be conducted;  and
(E)  other relevant information required by the commissioner;  and
(3)  be accompanied by the fees and proof of insurance required by Section 371.055.
(c)  The full name and address of each shareholder is not required if the applicant is owned directly or beneficially by a person who:
(1)  is an issuer of securities who:
(A)  has a class of securities registered under Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. Section 78l);  or
(B)  is required to file reports with the Securities and Exchange Commission by Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(d));  and
(2)  has filed with the commissioner the information, documents, and reports required by the Securities Exchange Act of 1934 (15 U.S.C. Section 77b et seq.) to be filed by the issuer with the Securities and Exchange Commission.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.055. Fees; Proof of Insurance

Sec. 371.055.  FEES; PROOF OF INSURANCE.  An applicant must submit with the application:
(1)  an investigation fee of:
(A)  $500 if the applicant does not hold a license; or
(B)  $250 if the application:
(i)  is for an additional license for a separate location; or
(ii)  involves substantially identical principals and owners of a licensed pawnshop at a separate location;
(2)  a fee in an amount determined as provided by Section 14.107; and
(3)  proof of general liability and fire insurance in a reasonable amount and form required by the commissioner.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 1235, Sec. 20, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 66, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.056. Bond

Sec. 371.056.  BOND.  (a)  The commissioner may require that an applicant file a bond with the application.  The bond must be:
(1)  satisfactory to the commissioner;
(2)  in the amount set by the commissioner not to exceed $5,000 for each license;  and
(3)  issued by a surety qualified to do business in this state.
(b)  The aggregate liability of the surety may not exceed the amount of the bond.
(c)  The bond must be in favor of this state for the use of this state and the use of a person who has a cause of action under this chapter against the pawnbroker.
(d)  The bond must be conditioned on:
(1)  the pawnbroker's compliance with this chapter and rules adopted under this chapter;  and
(2)  the payment of all amounts that become due to this state or to another person under 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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.057. Investigation; Notice of Application

Sec. 371.057.  INVESTIGATION;  NOTICE OF APPLICATION.  (a)  On receipt of an application and the required fees, the commissioner shall:
(1)  conduct an investigation to determine whether to issue the license;  and
(2)  give notice of the application to:
(A)  the Department of Public Safety of the State of Texas;
(B)  each local law enforcement agency in the county in which the business is to be conducted;  and
(C)  each pawnbroker in the county in which the applicant pawnshop is to be located.
(b)  The notice to the department of public safety and local law enforcement agencies must state the name and address of each person required by Section 371.054 to be listed on the license application.
(c)  The commissioner shall give the department and local law enforcement agencies a reasonable time to respond with information concerning the listed persons or with any other relevant information.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.058. Public Hearing

Sec. 371.058.  PUBLIC HEARING.  (a)  On request, the commissioner shall conduct a public hearing before issuing a pawnshop license.
(b)  The commissioner shall give a pawnbroker that would be affected by the granting of an application for a pawnshop license an opportunity to appear, present evidence, and be heard for or against the application.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.059. Approval; Issuance of License

Sec. 371.059.  APPROVAL;  ISSUANCE OF LICENSE.  (a)  Subject to Subsection (b), the commissioner shall approve the application and issue a license if the commissioner finds that the applicant is eligible for the license.
(b)  In a county with a population of 250,000 or more, the commissioner shall approve an application for:
(1)  an original license to operate a pawnshop at a facility that is not an existing licensed pawnshop at the time the application is filed if the proposed facility is not located within two miles of a licensed pawnshop;
(2)  the relocation of a licensed pawnshop to a facility that is not an existing licensed pawnshop at the time the application is filed if the facility where the pawnshop is to be relocated is not located within one mile of a licensed pawnshop;  and
(3)  the relocation of a licensed pawnshop if at the time the application is filed the pawnshop has been in operation at its current location for at least three years, and the facility where the pawnshop is to be relocated is either within one mile of its existing location or, if in excess of one mile from its existing location, not within one mile of another existing operating pawnshop.
(c)  Notwithstanding Subsection (b)(3), the commissioner may approve an application for the relocation of a licensed pawnshop that needs to relocate marginally further than one mile from its existing location or that at the time the application is made has not been in operation in its current location for at least three years if the necessity for relocation was caused by circumstances beyond the applicant's control.
(d)  A determination of distance for purposes of this section is based on a measurement taken from the front door of a facility to the front door of the other facility.  For a facility not in existence at the time the application is filed, the location of the front door of the proposed facility must be indicated on architectural drawings or comparable professionally prepared drawings depicting the facility and the entire boundary of the lot or parcel of land to which the facility is to be attached.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 1399, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.060. Notice of Denial; Hearing

Sec. 371.060.  NOTICE OF DENIAL;  HEARING.  (a)  If the commissioner does not make a finding described by Section 371.059, the commissioner shall notify the applicant.
(b)  An applicant who requests a hearing on the application not later than the 30th day after the date of notification under Subsection (a) is entitled to a hearing within 60 days after the date of the request.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.061. Period for Final Decision to Approve or Deny

Sec. 371.061.  PERIOD FOR FINAL DECISION TO APPROVE OR DENY.  Unless the applicant and the commissioner agree in writing to a later date, the commissioner shall approve or deny the application before the 61st day after the later of the date on which:
(1)  the application is filed and the required fees are paid;  or
(2)  a hearing on the application is completed.
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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.062. Disposition of Fees on Denial of Application

Sec. 371.062.  DISPOSITION OF FEES ON DENIAL OF APPLICATION.  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the application.
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. 67, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.0625. License Term

Sec. 371.0625.  LICENSE TERM.  A license issued under this subchapter is valid for the period prescribed by finance commission rule adopted under Section 14.112.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 68, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.063. License Issued Before October 1, 1981

Sec. 371.063.  LICENSE ISSUED BEFORE OCTOBER 1, 1981.  A license issued to a pawnshop before October 1, 1981, remains valid as long as the pawnbroker complies with 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 C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.064. License Fee; Expiration

Sec. 371.064.  LICENSE FEE; EXPIRATION. (a) Not later than the 30th day before the date the license expires, a pawnbroker shall pay to the commissioner for each license held a fee in an amount determined as provided by Section 14.107.
(b)  If the fee for a license is not paid before the 16th day after the date on which written notice of delinquency of payment has been given to the pawnbroker by the commissioner, the license expires on that day.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 1399, Sec. 2, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1235, Sec. 21, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 69, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle C - Pawnshops › Chapter 371 - Pawnshops › Subchapter B. Pawnshop License › Section 371.0645. Grounds for Refusal to Renew

Sec. 371.0645.  GROUNDS FOR REFUSAL TO RENEW.  The commissioner may refuse to renew the license of a person who fails to comply with an order issued by the commissioner to enforce this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 70, eff. September 1, 2019.