Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 84 - MOTOR VEHICLE INSTALLMENT SALES › Subchapter H - RETAIL INSTALLMENT SALES CONTRACT PROVISIONS › Section 84.807 - Contract Provisions

Current through Reg. 49, No. 28; July 12, 2024
A Texas Finance Code, Chapter 348 motor vehicle installment
					 sales contract may include the following contract provisions to the extent not
					 prohibited by law or regulation. If the seller desires to assess certain
					 charges or exercise certain rights under one of the following provisions,
					 except provisions relating to default, repossessions, acceleration, and
					 assignment of the contract, the seller must include the provision in the
					 contract. A seller may delete inapplicable provisions. A seller who does not
					 desire to apply a provision is not required to include it in the contract. For
					 example, the seller may omit the balloon payment provisions if there is no
					 balloon payment. A seller may also exclude non-relevant portions of a model
					 clause. For example, a seller who does not routinely finance certain insurance
					 coverages may omit those non-applicable portions of the model clause. A Texas
					 Finance Code, Chapter 348 motor vehicle installment sales contract may contain
					 the following provisions:
(1)
				  Identification of the parties, including the name and address of each party and
				  specifying the pronouns that designate the buyer and the seller;
(2) An assignment of contract
				  provision;
(3) A buyer's
				  affirmation and promise to pay provision;
(4) An inspection acknowledgment
				  provision;
(5) An identification of
				  the motor vehicle;
(6) A
				  description of the trade-in vehicle;
(7) A Truth in Lending Act (TILA) disclosure
				  box;
(8) An itemization of amount
				  financed box;
(9) A documentary fee
				  notice provision;
(10) A deferred
				  downpayments provision;
(11) A
				  required physical damage insurance provision;
(12) Optional insurance coverages and debt
				  cancellation agreement provision;
(13) Optional credit life and accident and
				  health insurance provision;
(14) A
				  liability insurance provision;
(15)
				  A provision prohibiting oral modification of the contract;
(16) A provision stating the finance charge
				  earnings method;
(17) A consumer
				  warning provision;
(18) A buyer's
				  acknowledgment of receipt of the retail installment contract as permitted under
				  Texas Finance Code, §
										RSA
				  348.112;
(19) OCCC notice;
(20) A provision stating the finance charge
				  refund method;
(21) A provision
				  describing the application of payments;
(22) A provision describing the effect of
				  early and late payments;
(23) A
				  provision providing for interest on any matured amount at any rate permitted by
				  law;
(24) Balloon payment
				  provisions;
(25) An agreement to
				  keep the motor vehicle insured;
(26) An agreement authorizing the creditor to
				  purchase required insurance if the buyer fails to keep the motor vehicle
				  insured;
(27) Physical damage
				  insurance proceeds provision;
(28)
				  Returned insurance premiums and service contract charges provision;
(29) An application of credits
				  provision;
(30) A transfer of
				  rights provision;
(31) An agreement
				  granting a security interest in collateral;
(32) Agreements regarding the use and
				  transfer of the motor vehicle, including prohibiting unauthorized transfer and
				  transfer of equity fee limitations;
(33) Agreements regarding the care of the
				  motor vehicle, which may include: keeping the motor vehicle in good working
				  order and repair; keeping the vehicle free from liens and encumbrances; not
				  exposing the motor vehicle to seizure, confiscation, or other involuntary
				  transfer; and repaying the creditor for any amounts paid to satisfy liens or
				  encumbrances;
(34) Default rights
				  and repossession provisions, including consequences of default, collection
				  costs, late charges, buyer's right to redeem, disposition of the motor vehicle,
				  cancellation of optional contracts, and acceleration;
(35) A waiver of any right to receive notice
				  of the intent to accelerate or notice of acceleration;
(36) A provision describing a refund of
				  unearned finance charge upon acceleration;
(37) An integration provision and
				  severability clause;
(38) Provision
				  expressing no waiver and limitations on creditor's rights and usury savings
				  clause;
(39) A provision stating
				  Texas law and federal law will apply to the contract;
(40) Disclaimer of express or implied
				  warranties;
(41) Preservation of
				  consumers' claims and defenses provision;
(42) Used car buyer's guide
				  provision;
(43) A guarantee
				  provision;
(44) An arbitration
				  provision; and
(45) A negotiation
				  and assignment provision.