Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 84 - MOTOR VEHICLE INSTALLMENT SALES › Subchapter G - EXAMINATIONS › Section 84.707 - Files and Records Required (Retail Sellers Assigning Retail Installment Sales Contracts)

Current through Reg. 49, No. 28; July 12, 2024
(a) Applicability.
				  The recordkeeping requirements of this section apply to retail sellers that
				  immediately assign or transfer all retail installment sales contracts to
				  another authorized creditor. If a retail seller collects any installments,
				  excluding downpayments, on a retail installment sales contract, the retail
				  seller must comply with the recordkeeping requirements established under §
										RSA
				  84.708 of this title (relating to Files and
				  Records Required (Retail Sellers Collecting Installments on Retail Installment
				  Sales Contracts)). The recordkeeping requirements of this section do not apply
				  to motor vehicle retail installment sales transactions involving commercial
				  vehicles.
(b) Records required for
				  each retail installment sales transaction. Each licensee must maintain records
				  with respect to the licensee's compliance with Texas Finance Code, Chapter 348
				  for each motor vehicle retail installment sales contract made, acquired,
				  serviced, or held under Chapter 348 and make those records available for
				  examination. This requirement includes any conditional delivery agreement or
				  retail installment sales contract signed by a retail buyer for a vehicle that
				  has been delivered, including contracts that are subsequently voided or
				  canceled after a seller regains possession and ownership of the
				  vehicle.
(c) Recordkeeping systems.
				  The records required by this section may be maintained by using either a
				  legible 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. Licensees may
				  maintain records on one or more recordkeeping systems, so long as the licensee
				  is able to integrate records pertaining to an account into one or more reports
				  as required by this section. 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.
(d) Records required.
(1) Retail installment sales transaction
				  report.
(A) General requirements. Each
				  licensee must maintain records sufficient to produce a retail installment sales
				  transaction report that contains a listing of each Texas Finance Code, Chapter
				  348 retail installment sales contract entered into by the licensee. The report
				  is only required to include those retail installment sales contracts that are
				  subject to the record retention period of paragraph (7) of this
				  subsection.
(B) Recordkeeping
				  systems. The retail installment sales transaction report can be maintained
				  either as a paper record or may be generated from an electronic system or
				  systems so long as the licensee can integrate the following information into a
				  report. If the retail installment sales transaction report is maintained under
				  a manual recordkeeping system, the retail installment sales transaction report
				  must be updated within a reasonable time from the date the contract is entered
				  into by the licensee.
(C) Dealer's
				  Motor Vehicle Inventory Tax Statement option.
(i) A licensee may utilize a copy of the
				  Dealer's Motor Vehicle Inventory Tax Statement (VIT Statement) submitted to the
				  Texas Comptroller of Public Accounts to satisfy the requirements of this
				  paragraph if the following two conditions are met when the VIT Statement is
				  provided to the commissioner's representative:
(I) on a copy of the submitted VIT Statement,
				  the licensee identifies (e.g., highlights, marks with abbreviations) which
				  transactions were cash transactions and which were retail installment sales
				  transactions; and
(II) the licensee
				  supplements the VIT Statement with the identification of all transactions in
				  which VIT was not charged or collected.
(ii) A licensee who assigns account numbers
				  and utilizes the Dealer's Motor Vehicle Inventory Tax Statement option must
				  provide the account numbers for all retail installment sales transactions
				  contained in the VIT Statement.
(D) Required information. A retail
				  installment sales transaction report must contain the following information:
(i) the date of contract or date of sale
				  (day, month, and year);
(ii) the
				  retail buyer's name(s);
(iii) a
				  method of identifying the vehicle, such as the last six digits of the vehicle
				  identification number or the stock number; and
(iv) the account number, if the retail seller
				  assigns an account number.