2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 345 - Retail Installment Sales › Subchapter A. General Provisions › Section 345.001. Definitions

Sec. 345.001.  DEFINITIONS.  In this chapter:
(1)  "Credit card issuer" means a person who issues an identification device, including a card or plate, that is used to obtain goods or services under a retail credit card arrangement, other than a person who is:
(A)  a bank, savings association, or credit union;
(B)  licensed to do business under Chapter 342;  or
(C)  regularly and principally engaged in the business of lending money for personal, family, or household purposes.
(2)  "Holder" means:
(A)  for a retail installment contract:
(i)  the retail seller of the goods or services under the contract if the contract or the outstanding balance under the contract has not been sold or otherwise transferred;  or
(ii)  if the contract or the outstanding balance under the contract has been sold or otherwise transferred, the person to whom it was transferred;
(B)  for a retail charge agreement:
(i)  the retail seller of the goods or services under the retail charge agreement if the agreement or the outstanding balance under the agreement has not been sold or otherwise transferred;  or
(ii)  if the agreement or the outstanding balance under the agreement has been sold or otherwise transferred, the person to whom it was sold or otherwise transferred;  or
(C)  for a retail credit card arrangement, the credit card issuer under the arrangement.
(3)  "Retail buyer" means a person who:
(A)  purchases or agrees to purchase goods from a retail seller;  or
(B)  obtains services from a retail seller or agrees to have services furnished by a retail seller.
(4)  "Retail charge agreement" means one or more instruments that prescribe the terms of retail installment transactions that may be made under the agreement from time to time and under which a time price differential is computed on the unpaid balance from time to time.  The term includes an instrument that prescribes the terms of a retail credit card arrangement.
(5)  "Retail credit card arrangement" means an arrangement that is not regulated under another chapter of this code and under which:
(A)  a retail seller or credit card issuer authorizes a retail buyer or lessee to use a credit card to purchase or lease goods or services from:
(i)  the seller or issuer, as appropriate;
(ii)  a person related to the seller or issuer;
(iii)  a person licensed or franchised to do business under the seller's or issuer's business or trade name or designation;  or
(iv)  another person authorized to honor the card;  and
(B)  the debt for the purchase or lease is payable in one or more installments.
(6)  "Retail installment contract" means one or more instruments entered into in this state that evidence a secured or unsecured retail installment transaction.  The term includes a chattel mortgage, security agreement, and conditional sale contract and a document that evidences a bailment or lease described by Section 345.068, but does not include:
(A)  an instrument that is a retail charge agreement;
(B)  an instrument reflecting a sale under a retail charge agreement; or
(C)  a rental-purchase agreement that complies with Chapter 92, Business & Commerce Code.
(7)  "Retail installment transaction" means a transaction in which a retail buyer purchases goods or services from a retail seller under a retail installment contract or retail charge agreement that provides for a time price differential and under which the buyer agrees to pay the unpaid balance and the time price differential in one or more installments.  The term includes a transaction:
(A)  made under a retail credit card arrangement;  or
(B)  for the sale of prepaid funeral benefits regulated under Chapter 154.
(8)  "Retail seller" means a person who regularly and substantially engages in the business of selling goods or services to retail buyers, other than the services of a member of a learned profession not specifically included under Section 345.003(b).
(9)  "Time price differential" means the amount paid or payable for accepting payment in installments for goods or services purchased, regardless of how the amount is denominated or expressed.  The term includes an amount payable to a holder as consideration for accepting payment in installments for goods and services charged under a retail credit card arrangement.  The term does not include an amount charged for insurance premiums, delinquency charges, attorney's fees, court costs, or official fees.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.035, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.17, eff. April 1, 2009.