reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.753 - Refund of Precomputed Interest for Regular Subchapter E Loans

Current through Reg. 49, No. 28; July 12, 2024
(a) If prepayment
					 in full is made by cash, renewal, or otherwise after the first installment due
					 date, the authorized lender must refund or credit to the borrower the unearned
					 interest by the scheduled installment earnings method authorized by §
											RSA 83.751 of this title
					 (relating to Scope) and identified in the loan agreement as the chosen refund
					 method. If prepayment in full or demand for payment in full occurs during an
					 installment period, the lender may retain an interest charge for previous
					 elapsed periods and the number of days beginning after the installment due date
					 and ending on the date of the prepayment or demand in full.
(b) If prepayment is made in full before the
					 first installment due date, an authorized lender may retain an interest charge
					 for each elapsed day between the date of the loan and the date of prepayment.
					 The interest charge may not exceed the amount of interest allowed under the
					 true daily earnings method for the same time period. The authorized lender must
					 refund or credit to the borrower the unearned interest.
(c) In calculating the amount of the refund
					 of the unearned interest, an authorized lender must consider any installments
					 that were deferred.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.754 - Refund of Precomputed Interest for Subchapter G Loans

Current through Reg. 49, No. 28; July 12, 2024
(a) Regular transactions.
(1) If prepayment in full is made by cash,
					 renewal, or otherwise, the authorized lender must refund or credit to the
					 borrower the unearned interest by the refund method authorized by §
												RSA 83.751 of this title
					 (relating to Scope) and identified in the loan agreement as the chosen refund
					 method. One day earned into a month will allow the lender to earn the interest
					 applicable to the full month.
(2)
					 If prepayment in full is made by cash, renewal, or otherwise, before the first
					 installment due date, the authorized lender must compute the refund as provided
					 by this paragraph.
(A) If the first
					 installment due date is 15 days or less from the date of the loan, the lender
					 may retain for each elapsed day between the date of the loan and prepayment
					 before the first installment due date, 1/30th of the interest that could be
					 retained if the first installment period were one month and the loan was
					 prepaid in full on the first installment due date. All interest in excess of
					 such amount must be refunded or credited to the borrower.
(B) If the first installment due date is 16
					 days or greater, but less than one month from the date of the loan, the lender
					 may retain for each elapsed day between the date of the loan and prepayment
					 before the first installment due date, 1/30th of the interest which could be
					 retained if the first installment period were one month and the loan was
					 prepaid in full on the first installment due date.
(C) If the first installment due date is more
					 than one month from the contract date, the lender may retain for each elapsed
					 day between the date of the loan and prepayment, 1/30th of the interest which
					 could be retained if the first installment period were one month and the loan
					 was prepaid in full on the first installment due date. The daily charge is
					 multiplied by the number of elapsed days up until the first installment due
					 date.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.755 - Specific Application to Subchapter F Loans

Current through Reg. 49, No. 28; July 12, 2024
(a) Items subject to refund. The installment
					 account handling charge is subject to refund.
(b) Items not subject to refund. An
					 acquisition charge is not subject to refund, as the charge is considered to be
					 earned at the time the loan is made.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.756 - Refund of Precomputed Interest for Subchapter F Loans; Prepayment in Full Before the First Installment Due Date

Current through Reg. 49, No. 28; July 12, 2024
(a) If the first installment due date is one
					 month or less from the date of the loan, the authorized lender may retain for
					 each elapsed day between the date of the loan and prepayment before the first
					 installment due date, 1/30th of the installment account handling charge that
					 could be retained if the first installment period were one month and the loan
					 was prepaid in full on the first installment due date. All interest in excess
					 of such amount must be refunded or credited to the borrower.
(b) If the first installment due date is more
					 than one month from the contract date but less than or equal to one month and
					 15 days from the contract date, the authorized lender may retain for each
					 elapsed day between the date of the loan and prepayment before the first
					 installment due date, 1/30th of the interest that could be retained if the
					 first installment period were one month and the loan was prepaid in full on the
					 first installment due date up to a maximum of 30 days. All interest in excess
					 of such amount must be refunded or credited to the borrower.
(c) To calculate the amount of the refund of
					 unearned interest, an authorized lender must consider any installments that
					 were deferred.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.757 - Refund of Precomputed Interest for Subchapter F Loans; Prepayment in Full After the First Installment Due Date and Before the Final Installment Due Date

Current through Reg. 49, No. 28; July 12, 2024
(a) If prepayment
					 in full is made by cash, renewal, or otherwise, the authorized lender must
					 refund or credit to the borrower the unearned installment account handling
					 charge by the refund method authorized by §
											RSA
					 83.751(b) of this title
					 (relating to Scope) and identified in the loan agreement as the chosen refund
					 method. One day earned into a month will allow the lender to earn the interest
					 applicable to the full month.
(b)
					 To calculate the amount of the refund of unearned interest, an authorized
					 lender must consider any installments that were deferred.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 8 - REFUNDS FOR PRECOMPUTED LOANS › Section 83.758 - Excess Refunds

Current through Reg. 49, No. 28; July 12, 2024
If a lender has refunded more than required to a
						borrower, the excess refund may not be collected from or debited from the
						account of the borrower, unless the borrower voluntarily agrees to pay back the
						excess refund, or the borrower voluntarily agrees, in writing, to have his
						existing account adjusted when the excess refund was made on the renewal of the
						preceding account.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.801 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
Words and terms used in this subchapter that are defined
						in Texas Finance Code, Chapter 342, have the meanings as defined in Chapter
						342. The following words and terms will have the following meanings unless the
						context clearly indicates otherwise.
(1) Personal property insurance--Coverage to
					 insure tangible personal property offered as security for a loan made under
					 Chapter 342.
(2) Property
					 insurance--Coverage to insure either an interest in real estate or tangible
					 personal property offered as security for a loan made under Chapter
					 342.
(3) Single-interest
					 insurance--A form of property insurance that protects only the lender's
					 interest in the property.
(4)
					 Credit insurance--Includes credit life insurance, credit accident and health
					 insurance, and credit involuntary unemployment insurance.
(5) Total personal property loss--The loss of
					 all items of personal property listed as security for a loan and insured by a
					 particular insurance policy.
(6)
					 Partial personal property loss--Any loss other than a total personal property
					 loss.
(7) Gap waiver agreement--An
					 agreement that eliminates or reduces the deficiency when the proceeds from the
					 borrower's insurance policy do not cover the unpaid net balance after the motor
					 vehicle has suffered a total loss or constructive total loss. The unpaid net
					 balance on the loan does not include:
(A)
					 delinquent payments (any outstanding payment that is more than 10 days past
					 due);
(B) late charges;
(C) unearned interest;
(D) unearned insurance premiums;
(E) fees added after the date of the loan;
					 or
(F) any portion of the
					 borrower's basic comprehensive and collision policy deductible that exceeds
					 $1,000.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.802 - Authorized Property Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Property insurance, other than insurance covering a motor vehicle, written in
					 connection with a loan made under Texas Finance Code, Chapter 342 must be
					 written at lawful rates that have been filed with the Texas Department of
					 Insurance.
(b) If property
					 insurance, other than insurance covering a motor vehicle, requested or required
					 on a loan is sold or obtained by a licensee at a rate that has not been filed
					 with the Texas Department of Insurance, the licensee must file information with
					 the OCCC that the coverage and the rate bear a reasonable relationship to:
(1) the amount, term, and conditions of the
					 loan;
(2) the value of the
					 collateral; and
(3) the existing
					 hazards or risk of loss, damage, or destruction.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.803 - Limitations on Property Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Personal property insurance, other than insurance covering a motor vehicle,
					 must not be written in an amount in excess of the total related note unless
					 prior to writing the insurance, the complete policy of insurance, the proposed
					 rates, and the proposed conditions have been approved by the
					 commissioner.
(b) Property
					 insurance must not be written for more than the value of the item or items
					 insured.
(c) Motor vehicle
					 insurance written in accordance with applicable law, the regulations
					 promulgated by the Texas Department of Insurance, and the rating procedures
					 established by the Texas Department of Insurance, is presumed to satisfy the
					 requirements set forth in Texas Finance Code, Chapter 342, Subchapter
					 I.
(d) Each licensee must
					 substantiate that the amount of personal property insurance, other than
					 coverage on a motor vehicle, is reasonable in relation to the value of the item
					 or items insured. The value must be established in writing by the borrower and
					 the licensee on each insured item and each value must be reasonable in relation
					 to the actual replacement cost of the item. A valuation that has been
					 established on goods to be insured may not be increased unless it can be shown
					 there has been a substantial change in the nature of the items insured or the
					 value of these items.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.804 - Claim Provisions for Property Insurance Other than Insurance Covering Motor Vehicles

Current through Reg. 49, No. 28; July 12, 2024
(a) Personal
					 property insurance, other than insurance covering motor vehicles, written on a
					 loan subject to Texas Finance Code, Chapter 342, should provide a procedure for
					 determining and adjusting the value of insured items in the event of a loss. If
					 a licensee does not utilize a formula submitted to and approved by the
					 commissioner for adjusting the value of the items insured and if a loss occurs,
					 the value initially stated is presumed to be the actual replacement cost of
					 each insured item throughout the life of the policy.
(b) Personal property insurance may be
					 written in an amount that is less than the value of the loan collateral at
					 rates not fixed or approved by the Texas Department of Insurance. Personal
					 property insurance may not be written unless it provides for payment of a sum
					 not less than the claims ratio multiplied by the amount of the loss. The claims
					 ratio is calculated by dividing the amount of insurance by the total value of
					 the secured collateral covered by the insurance policy, rounded to the fourth
					 digit to the right of the decimal point. For example, the terms of a
					 transaction are as follows: the original total of payments in an installment
					 loan is $3,000; the term is 2 1/2 years with monthly installment payments of
					 $100; property insurance is purchased to insure three items of collateral for
					 up to $3,000: a piano worth $2,500, a computer worth $1,500, and a television
					 worth $500; and the piano is then stolen and reported to the insurer by the
					 borrower. The claims ratio is calculated by dividing the value of the insurance
					 written, $3,000, by the total value of the collateral covered by the policy,
					 $4,500. Applying the claims ratio of 2/3 or .6667 to the amount of the loss,
					 $2,500, leads to the conclusion that no less than $1,666.75 should be paid
					 under the applicable property insurance policy. A licensee may only write a
					 policy of property insurance that would provide for a payment of not less than
					 $1,666.75 under the facts provided in this example.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.805 - Authorized Credit Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Credit insurance written in connection with a Texas Finance Code, Chapter 342
					 loan must be decreasing term insurance.
(b) Credit life insurance and credit accident
					 and health insurance must be written in compliance with Texas Insurance Code,
					 Chapters 1131 and 1153, and any regulations issued by the Texas Department of
					 Insurance under the authority of those provisions.
(c) Credit involuntary unemployment insurance
					 must be written in compliance with Texas Insurance Code, Chapter 3501, and any
					 regulations issued by the Texas Department of Insurance under the authority of
					 that chapter.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.806 - Provision of Policy or Certificate

Current through Reg. 49, No. 28; July 12, 2024
If a Texas Finance Code, Chapter 342 loan provides for
						the purchase of insurance by the borrower from the lender, the lender must
						furnish to the borrower, within 30 days of the date of the loan, a properly
						executed policy or certificate of insurance. The policy or certificate of
						insurance must clearly set 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
					 insurance that has been purchased.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.807 - Collateral Protection Insurance

Current through Reg. 49, No. 28; July 12, 2024
If a lender arranges for collateral protection insurance
						and assesses a charge for the insurance to the borrower, the lender must comply
						with the provisions of Texas Finance Code, Chapter 307.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.808 - Termination and Refund

Current through Reg. 49, No. 28; July 12, 2024
(a) Upon discharge
					 of an indebtedness by prepayment, renewal, or refinancing, any insurance, other
					 than nonfiling insurance, written under the authority of Texas Finance Code,
					 Chapter 342, Subchapter I, must be automatically terminated. At the option of
					 the borrower, dual-interest motor vehicle insurance may be retained without
					 cancellation. If a policy of insurance is terminated prior to scheduled
					 maturity, a credit of the unearned premium must be applied to the borrower's
					 account or a refund of the unearned premium must be paid by the lender to the
					 borrower.
(b) Upon termination of a
					 personal property insurance policy prior to the scheduled maturity of a loan,
					 other than collateral protection insurance, the licensee must provide the
					 borrower a refund or credit calculated in accordance with the policy approved
					 by the commissioner. The policy must provide for a pro rata method of making
					 refunds. The pro rata method of making refunds involves computing a factor to
					 apply to the total premium to determine the unearned portion. The factor is
					 determined by dividing the term remaining on the loan by the total loan
					 term.
(c) Upon termination of a
					 collateral protection insurance policy prior to the scheduled maturity of a
					 loan, the lender must provide the borrower a refund or credit calculated in
					 accordance with the insurance policy approved by the Texas Department of
					 Insurance.
(d) Upon termination of
					 a credit life or credit accident and health insurance policy prior to the
					 scheduled maturity of a loan, the lender must provide the borrower a refund or
					 credit calculated in compliance with Texas Insurance Code, Chapter 1153 and
					 regulations issued by the Texas Department of Insurance under the authority of
					 that chapter.
(e) Upon termination
					 of a credit involuntary unemployment insurance policy prior to the scheduled
					 maturity of a loan, the lender must provide the borrower a refund or credit
					 calculated in accordance with the insurance policy approved by the Texas
					 Department of Insurance.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.809 - Prepayment of Loan from Insurance Proceeds

Current through Reg. 49, No. 28; July 12, 2024
(a) Personal property insurance. If a loan is
					 prepaid in full from the proceeds of a personal property insurance policy
					 following a personal property loss, the refund should be computed as follows:
(1) Total personal property loss, other than
					 motor vehicle.
(A) An interest refund must be
					 computed as of the date the settlement check is received by the licensee or 45
					 days from the date of loss, whichever occurs first.
(B) A credit insurance premium refund and
					 collateral protection insurance premium refund must be computed as of the date
					 the settlement check is received by the licensee.
(C) A personal property insurance premium
					 refund, other than an insurance premium refund on a motor vehicle, must be
					 computed as of the day following the date of loss. In the event the borrower
					 has requested cancellation, any dual-interest motor vehicle insurance premium
					 refund must be computed as prescribed by the Automobile Rules and Rating
					 Manual.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.810 - Evidence of Equal Insurance Coverage

Current through Reg. 49, No. 28; July 12, 2024
If a borrower provides a lender with evidence of property
						insurance coverage that names the lender as a loss payee and that is equivalent
						to insurance purchased already through the lender, the lender must promptly
						cancel any equivalent property insurance or collateral protection insurance.
						The refund of any unearned insurance premium must be applied to the balance of
						the loan or refunded to the borrower.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.811 - Nonfiling Insurance

Current through Reg. 49, No. 28; July 12, 2024
If a Texas Finance Code, Chapter 342 loan is renewed and
						a charge was assessed for nonfiling insurance in the original loan, a new
						charge for nonfiling insurance may not be assessed or contracted for in the
						renewed loan unless the term of the renewed loan extends more than five years
						after the date of the original loan. If different collateral is substituted or
						added to a loan, then a new charge for nonfiling insurance may be
						assessed.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 9 - INSURANCE › Section 83.812 - Gap Waiver Agreement

Current through Reg. 49, No. 28; July 12, 2024
(a) Disclosure
					 required by Texas Finance Code, §
											RSA
					 342.4021(d).
(1) Disclosure. A lender must provide the
					 borrower with the gap waiver agreement disclosure before presenting the
					 borrower with the terms of the gap waiver agreement. The disclosure must not be
					 in the loan agreement and must state that the borrower is not required to
					 purchase the gap waiver agreement in order to obtain the loan. A lender may
					 request that the borrower authenticate the gap waiver agreement disclosure
					 acknowledging the borrower's timely receipt of the disclosure. A licensee may
					 rely upon verifiable procedure to show that the gap waiver agreement disclosure
					 was provided to a borrower.
(2)
					 Multiple applicants. In the case of multiple applicants, it is only necessary
					 for the licensee to deliver the gap waiver agreement disclosure to one
					 applicant.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.826 - Quotation of Net Pay-Offs

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Generally. If a borrower, spouse of a borrower, or a co-obligor inquires about
					 the net amount necessary to pay the borrower's indebtedness in full, a lender
					 must provide the requested information to the person making the inquiry free of
					 charge within a reasonable time. A lender must provide this information even if
					 at the time the inquiry is made, the account is delinquent.
(b) Chapter 342, Subchapter G loans. On a net
					 pay-off inquiry relating to a secondary mortgage loan under Texas Finance Code,
					 Chapter 342, Subchapter G, a lender must provide the quote in writing. On a
					 secondary mortgage loan made under Subchapter G, a reasonable time in which to
					 respond to an inquiry for a net pay-off is seven calendar days, unless federal
					 law requires a shorter response time.
(c) Chapter 342, Subchapter E and F loans. In
					 the case of a loan made under Texas Finance Code, Chapter 342, Subchapter E or
					 F, a reasonable time in which to respond to an inquiry for a net pay-off is two
					 business days.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.827 - Return of Instruments to Borrower

Current through Reg. 49, No. 28; July 12, 2024
(a) Definition. "Collected funds" means cash
					 or any other form of payment that is or has become final. For example, an
					 electronic funds transfer that is actually received by the authorized lender
					 from the borrower's financial institution would be deemed to be collected
					 funds.
(b) Procedure. Upon
					 discharge of an indebtedness by payment, renewal, or refinancing, a lender must
					 return an original or true and correct copy of the instrument creating the
					 indebtedness marked "PAID" or, in lieu of a marked original or copy, provide a
					 discharge and release of all obligations under the loan to satisfy the
					 requirements of Texas Finance Code, §
											RSA
					 342.454. In addition, if a loan has been paid
					 off, a lender must give the borrower, in a recordable form, a release of the
					 lien, including a lien on a motor vehicle title or on real estate, or must
					 provide documentation of the release to the borrower, at the option of the
					 lender whose loan has been paid, a copy of an endorsement, with or without
					 recourse, representation or warranty, and assignment of the lien to a lender
					 that is refinancing the loan. A lender must comply with the requirements of
					 this section within a reasonable time not to exceed 30 days after receipt of
					 collected funds by the lender. An authorized lender must discharge or release a
					 lien on a motor vehicle not later than the 10th day after the date of receipt
					 of the collected funds by the lender pursuant to Texas Transportation Code,
					 §
											RSA
					 501.115.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.828 - Files and Records Required (Subchapter E and F Lenders)

Current through Reg. 49, No. 28; July 12, 2024
Each licensee must maintain records with respect to each
						loan made under Texas Finance Code, Chapter 342, Subchapters E and F, and make
						those records available for examination. The records required by this section
						may be maintained by using either a paper or manual recordkeeping system,
						electronic recordkeeping system, optically imaged recordkeeping system, or a
						combination of the preceding types of systems, unless otherwise specified by
						statute or regulation. If federal law requirements for record retention are
						different from the provisions contained in this section, the federal law
						requirements prevail only to the extent of the conflict with the provisions of
						this section.
(1) Loan register. Each
					 licensee must maintain a loan register, containing the information required by
					 subparagraphs (A) - (D) of this paragraph, for each Texas Finance Code, Chapter
					 342, Subchapter E and F loan made by the licensee. The loan register can be
					 maintained either as a paper or an electronic record. If the loan register is
					 maintained as an electronic record, the licensee must be able to sort,
					 generate, and print, as a separate record, the loan register for each day the
					 licensee originated or acquired Chapter 342, Subchapter E and F loans. A
					 licensee may incorporate the loan register as part of the record of daily
					 transactions required by paragraph (7) of this section if the loan register is
					 a separate and distinct section of the daily report. If the loan register is
					 maintained as a paper record, the loan register must be currently maintained. A
					 licensee may file, in chronological order, copies of any loan document or form
					 prepared at the time a loan is made reflecting the information provided in
					 subparagraphs (A) - (D) of this paragraph to serve as a loan register. A loan
					 register must contain the following information:
(A) Date of loan (month, day, and
					 year);
(B) Last name of
					 borrower;
(C) Total of payments
					 (amount of loan); and
(D) Loan
					 number. Loans may be numbered in ascending sequence as made or may bear an
					 account number permanently assigned to one borrower with a numerical suffix
					 reflecting the number of loans to the borrower. A permanent account number may
					 be used in an automated system for each series of loans to a borrower; however,
					 a consecutive suffix number must be assigned to each loan in the series to
					 distinguish it from the others.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.829 - Files and Records Required (Subchapter G Lenders)

Current through Reg. 49, No. 28; July 12, 2024
Each licensee must maintain records with respect to each
						loan made under Texas Finance Code, Chapter 342, Subchapter G and each home
						equity loan made under Texas Constitution, Article XVI, Section 50, and make
						those records available for examination. The records required by this section
						may be maintained by using either a paper or manual recordkeeping system,
						electronic recordkeeping system, optically imaged recordkeeping system, or a
						combination of the preceding types of systems, unless otherwise specified by
						statute or regulation. If federal law requirements for record retention are
						different from the provisions contained in this section, the federal law
						requirements prevail only to the extent of the conflict with the provisions of
						this section. The records required by this section must be retained and made
						available for inspection in the same manner as that specified in §
											RSA
						83.828(14) of this title
						(relating to Files and Records Required (Subchapter E and F Lenders)).
(1) Required records. A licensee must
					 maintain the following items in a substantially similar form to the respective
					 provisions of §
											RSA
					 83.828 of this title, as follows:
(A) A loan register;
(B) Transfer records;
(C) General business and accounting
					 records;
(D) A record of daily
					 transactions;
(E) Insurance loss
					 registers;
(F) Advertising
					 records;
(G) Adverse action
					 records; and
(H) A compliance
					 file.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.830 - Secondary Mortgage Loan Record Retention Requirement

Current through Reg. 49, No. 28; July 12, 2024
Any person who engages in secondary mortgage loans
						subject to Chapter 342 must maintain records of the secondary mortgage loans in
						accordance with Texas Finance Code, §
											RSA
						342.558.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.831 - Review of Electronic Recordkeeping Systems and Optical Imaging Systems

Current through Reg. 49, No. 28; July 12, 2024
(a) Generally.
					 Records and accounting systems maintained in whole or in part by electronic
					 systems must contain the equivalent information as required in §
											RSA
					 83.828 and §
											RSA
					 83.829 of this title (relating to Files and
					 Records Required (Subchapter E and F Lenders) and Files and Records Required
					 (Subchapter G Lenders)).
(b)
					 Software review for Chapter 342, Subchapter E or F licensees. A licensee
					 making, transacting, or negotiating consumer loans subject to Texas Finance
					 Code, Chapter 342, Subchapter E or F must use a reviewed software system unless
					 the licensee utilizes either a manual recordkeeping system that complies with
					 §
											RSA
					 83.828 of this title or a proprietary
					 software system that is not sold or distributed to other licensees, unless the
					 other licensees are affiliates of the licensee operating the proprietary
					 system. A list of reviewed non-proprietary software systems that may be used by
					 licensees will be maintained on the OCCC's website. A licensee or software
					 vendor must provide documentation of the non-proprietary software system to the
					 OCCC that explains how the required information is maintained within the
					 system.
(c) Software review for
					 Chapter 342, Subchapter G licensees. A licensee making, transacting, or
					 negotiating secondary mortgage loans subject to Texas Finance Code, Chapter
					 342, Subchapter G will not have to submit its electronic recordkeeping system
					 for review.
(d) Non-proprietary
					 software system documentation.
(1) Required
					 information. A licensee or software vendor seeking a review of a
					 non-proprietary software system must make available a complete and detailed
					 written description of the system proposed to be utilized, including:
(A) a statement specifying whether the system
					 will be used in its entirety;
(B)
					 operating manuals;
(C)
					 instructions;
(D) a copy of the
					 software to be used; and
(E) a full
					 description of backup systems in place that will ensure business continuity and
					 the protection of the data.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.832 - Review of Records

Current through Reg. 49, No. 28; July 12, 2024
If it is determined during the course of an examination
						the extent of error and discrepancies made by a licensee indicate that the
						licensee has not been conducting business in substantial compliance with the
						law, the commissioner may direct the licensee to review the account records and
						make proper adjustments to any accounts in error or make any appropriate
						refunds.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.833 - Correction of Errors or Violations

Current through Reg. 49, No. 28; July 12, 2024
(a) Any amount due a borrower because of a
					 correction of an error or a violation may be credited to an amount due under
					 the promissory note or to the next payment or payments on the existing account
					 of the borrower. If the credit is applied to payments not yet due, the licensee
					 must notify the borrower in writing of the date and amount of the next payment
					 due after this credit has been given.
(b) In lieu of crediting an existing account,
					 a refund may be made directly to the borrower by cash, check, money order, or
					 other negotiable instrument. The licensee must maintain sufficient records that
					 the refund was made.
(1) Cash refunds. If the
					 refund is made directly to the borrower in cash, the licensee must obtain a
					 signed or authenticated acknowledgment from the borrower. The signed or
					 authenticated acknowledgment must contain the following information:
(A) the borrower's full name;
(B) the borrower's account number (the
					 account number upon which the refund was made);
(C) the amount of the refund; and
(D) a statement that the borrower received
					 the refund in cash and that the licensee has not instructed or required the
					 borrower to repay the cash refund.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.834 - Unclaimed Funds

Current through Reg. 49, No. 28; July 12, 2024
(a) Escheat
					 suspense account. The licensee must transfer any amounts due a borrower not
					 paid within one year, i.e., unclaimed funds, to an escheat suspense account.
					 The transfer must be noted on the account record of the borrower.
(b) Required information. Evidence of a bona
					 fide attempt to pay a refund to a borrower must be kept in the records of the
					 borrower. The licensee must place with the records of the borrower any
					 information received by the licensee that indicates the borrower has died
					 leaving no will or heirs, or has left the community and the borrower's
					 whereabouts are unknown. If deemed necessary with respect to a specific
					 borrower, a licensee may be required to send the unclaimed funds by registered
					 or certified mail to the last known address of the borrower.
(c) Use of unclaimed funds. Use of unclaimed
					 funds within the business until such time as paid to the borrower, to the
					 estate of the borrower, or to the State of Texas is not prohibited; however,
					 funds transferred to an escheat suspense account must not be commingled with
					 the funds of the business.
(d)
					 Escheat to state. At the end of three years, the unclaimed funds must be paid
					 to the State of Texas Comptroller of Public Accounts, Unclaimed Property
					 Division, as required by Texas Property Code, §
											RSA
					 72.101 and §
											RSA
					 74.301, or must be paid to the appropriate
					 state or other governmental entity under the time period provided by the other
					 state's or entity's applicable law.
(e) Record retention. The records of the
					 escheat suspense account must be retained for a period of 10 years.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.835 - Annual Report

Current through Reg. 49, No. 28; July 12, 2024
Each licensee must file the required annual report by May
						1 for the prior calendar year's loan activity on forms prescribed by the OCCC
						and must comply with all instructions relating to submitting the
						report.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.836 - Follow-Up Examination Fees

Current through Reg. 49, No. 28; July 12, 2024
If a follow-up examination visit is required within nine
						months after a written deficiency report has been given as a result of a
						failure to comply with Texas Finance Code, Chapter 342, this subchapter, or the
						special instruction section of the examination report, an examination fee at
						the hourly rate of $100 per examiner may be assessed.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.837 - Disclosure when Automobile Club Membership Offered in Connection with Loan

Current through Reg. 49, No. 28; July 12, 2024
(a) If an
					 automobile club membership is offered in connection with a loan under Texas
					 Finance Code, Chapter 342, Subchapter E, the disclosure contained in subsection
					 (c) of this section is sufficient to satisfy the requirements of Texas Finance
					 Code, § 342.457 if printed in a size equal to at least 10-point type that
					 is boldfaced, capitalized, underlined, or otherwise set out from surrounding
					 written material so as to be conspicuous.
(b) The text of the disclosure must be set in
					 an easily readable typeface. Typefaces considered to be easily readable include
					 Times, Scala, Caslon, Century Schoolbook, Helvetica, Arial, and Garamond.
(c) The lender must provide this
					 disclosure in both English and Spanish to all borrowers who are offered an
					 automobile club membership in connection with their loans. The automobile club
					 membership disclosure must read as follows:
(1) "I AM NOT REQUIRED TO PURCHASE THIS
					 AUTOMOBILE CLUB MEMBERSHIP AS A CONDITION FOR APPROVAL OF THIS LOAN. I CAN
					 CANCEL THIS MEMBERSHIP WITHIN 31 DAYS AND RECEIVE A FULL REFUND OF THE PURCHASE
					 PRICE."
(2) Spanish Translation:
					 "NO SE REQUIERE QUE COMPRE ESTA MEMBRESÍA DE CLUB AUTOMOTRIZ COMO
					 CONDICIÓN PARA LA APROBACIÓN DE ESTE PRÉSTAMO. PUEDO
					 CANCELAR ESTA MEMBRESÍA DENTRO DE 31 DÍAS Y RECIBIR UN REEMBOLSO
					 TOTAL DEL PRECIO DE COMPRA."
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 10 - DUTIES AND AUTHORITY OF AUTHORIZED LENDERS › Section 83.838 - Loans with Multiple Advances

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Definition. In this section, "multiple-advance loan" means a loan agreement
					 subject to Texas Finance Code, Chapter 342, under which more than one loan or
					 advance may be made to a borrower from time to time.
(b) Requirements for multiple-advance loans.
					 In connection with a multiple-advance loan, an authorized lender must comply
					 with the interest limitations, disclosure requirements, and other requirements
					 provided in Texas Finance Code, §
											RSA
					 342.455.
(c) Loans not covered. The following loans
					 are not subject to this section or to Texas Finance Code, §
											RSA
					 342.455:
(1) loans in which all advances occur on the
					 same date; and
(2) loans in which
					 all advances after the initial advance occur because of the borrower's default
					 (e.g., collateral protection insurance fees, repossession fees, court
					 costs).
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 11 - PROHIBITIONS ON AUTHORIZED LENDERS › Section 83.851 - Duplication of Loans

Current through Reg. 49, No. 28; July 12, 2024
(a) A licensee may
					 have more than one loan contract under Texas Finance Code, Chapter 342 with the
					 same borrower at the same time; however, in such an event the total interest
					 charges assessed on the several cash advances must not exceed the total
					 interest charges that could be legally imposed on one cash advance of an amount
					 equal to the total of the several separate cash advances. The commissioner may
					 require refunds of interest charges in excess of that which could be legally
					 charged under Chapter 342. The commissioner will prescribe the method of
					 determining any excess charges.
(b)
					 Married applicants, who under the authority of Regulation B,
					 RSA
					 1002.11(c), voluntarily
					 apply for and maintain separate accounts, and who have the ability to repay the
					 obligation, will not violate the prohibition on duplicate loans.
(c) No loan may be made by a licensee in one
					 office to any borrower or to the spouse of the borrower when the borrower or
					 spouse has a loan in another office operated by the same entity, affiliate,
					 parent, subsidiary, or an entity under the same ownership, management, or
					 control, whether partial or complete, when the total interest charges of the
					 separate loans exceed the total interest charges that could be legally imposed
					 on one cash advance. If loans are granted that violate this section, the rates
					 must be adjusted to rates applicable to a single loan of equivalent
					 amounts.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter A - RULES FOR REGULATED LENDERS › Division 11 - PROHIBITIONS ON AUTHORIZED LENDERS › Section 83.852 - Loan Size, Duration, and Schedule of Installments: Limitation

Current through Reg. 49, No. 28; July 12, 2024
When making or negotiating a loan under Texas Finance
						Code, Chapter 342, licensees must consider, in determining the size, duration,
						and schedule of installments of a loan, the financial ability of the borrower
						to repay the loan. The lender should evaluate whether the borrower should be
						reasonably able to repay the loan in cash in the time and means provided in the
						loan contract and repay all other known obligations
						concurrently.