Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 84 - MOTOR VEHICLE INSTALLMENT SALES › Subchapter B - RETAIL INSTALLMENT CONTRACT › Section 84.204 - Disclosure of Equity in Retail Buyer's Trade-In Motor Vehicle

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose and
				  delivery. The purpose of this section is to provide a standard form for the
				  disclosure of equity that a retail seller must provide to the retail buyer
				  before accepting a trade-in motor vehicle for an ordinary motor vehicle sold
				  under a retail installment sales contract. The disclosure of equity standard
				  form is not required for transactions where a single cash payment is made for
				  the sale of the motor vehicle. This section prescribes the form and content of
				  the standard form under Texas Finance Code, §
										RSA
				  348.0091. This section does not apply to
				  retail installment sales transactions for commercial vehicles.
(b) Required elements. A disclosure of equity
				  standard form to be provided to the retail buyer before accepting a trade-in
				  motor vehicle for a motor vehicle sold under a retail installment sales
				  contract must contain the required elements as provided in Texas Finance Code,
				  §
										RSA
				  348.0091(c).
(c) Single page required. The disclosure of
				  equity standard form must fit on one standard-size sheet of paper (8 1/2 by 11
				  inches).
(d) Font. The disclosure
				  of equity standard form must be printed in an easily readable font and type
				  size. If other state or federal law requires a different type size for a
				  specific disclosure or contractual provision, the type size specified by the
				  other law should be used.
(e)
				  Typeface. The text of the disclosure of equity standard form must be set in an
				  easily readable typeface. Typefaces considered to be readable include: Arial,
				  Calibri, Caslon, Century Schoolbook, Garamond, Helvetica, Scala, and Times New
				  Roman.
(f) Typeface size. Typeface
				  size is referred to in points. Because different typefaces in the same point
				  size are not of equal size, typeface is not strictly defined but is expressed
				  as a minimum size in the Times New Roman typeface for visual comparative
				  purposes. Generally, the typeface for the text of the disclosure of equity
				  standard form must be at least as large as 10 point in the Times New Roman
				  typeface. A point is generally viewed as 1/72nd of an inch.
(g) Co-buyers. If the motor vehicle being
				  sold under a retail installment sales contract is being purchased by co-buyers,
				  the signature of one co-buyer will verify delivery of a disclosure under this
				  section.
(h) Required standard
				  form. The required disclosure of equity standard form under Texas Finance Code,
				  §
										RSA
				  348.0091 to be provided to the retail buyer
				  before accepting a trade-in motor vehicle for a motor vehicle sold under a
				  retail installment sales contract is presented in the following figure.
Attached
					 Graphic
(i)
				  Permissible changes. A retail seller must use the required disclosure of equity
				  standard form, but may consider making only limited technical changes in the
				  disclosure paragraph required by Texas Finance Code, §
										RSA
				  348.0091(c)(1)(H), as
				  provided by the following exclusive list:
(1)
				  substituting the following for the words "the dealer":
(A) the retail seller's name;
(B) the pronoun "we"; or
(C) "the seller";