Texas Register, Volume 48, Number 52, Pages 8063-8476, December 29, 2023 Page: 8,332

                                
(C) Basel collateral haircut method. A state bank may
calculate the credit exposure of a securities financing transaction in the
manner provided by 12 C.F.R. 324.132(b)(2)(i) and (ii) (or 12 C.F.R.
217.132(b)(2)(i) and (ii) in the case of a bank that is a member of the
Federal Reserve System).
(2) Mandatory or alternative use of method. The commis-
sioner may in the exercise of discretion require or permit a state bank
to use a specific method or methods set forth in this subsection to cal-
culate the credit exposure arising from all securities financing transac-
tions, from any category of securities financing transactions, or from
a specific derivatives transaction if the commissioner finds in the ex-
ercise of discretion that such method is consistent with the safety and
soundness of the bank.
The agency certifies that legal counsel has reviewed the adop-
tion and found it to be a valid exercise of the agency's legal au-
thority.
Filed with the Office of the Secretary of State on December 15,
2023.
TRD-202304814
Robert K. Nichols, Ill
General Counsel
Texas Department of Banking
Effective date: January 4, 2024
Proposal publication date: November 10, 2023
For further information, please call: (512) 475-1382
4         4         4
SUBCHAPTER B. LOANS
7 TAC 12.33
The amendments to Chapter 12, Subchapter B are adopted pur-
suant to Finance Code 11.301, which authorizes the commis-
sion to adopt rules applicable to state banks, and Finance Code,
31.003, which authorizes the commission to adopt rules nec-
essary to preserve or protect the safety and soundness of state
banks.
These amendments affect the statutes administered and en-
forced by the department's commissioner with respect to state
banks, contained in Finance Code, Subtitle A. No other statutes
are affected by this proposal.
The agency certifies that legal counsel has reviewed the adop-
tion and found it to be a valid exercise of the agency's legal au-
thority.
The agency certifies that legal counsel has reviewed the adop-
tion and found it to be a valid exercise of the agency's legal au-

thority.
Filed with the Office of the Secretary of State on December 15,
2023.

TRD-202304882
Robert K. Nichols, Ill
General Counsel
Texas Department of Banking
Effective date: January 4, 2024
Proposal publication date: November 10, 2023
For further information, please call: (512) 475-1382

PART 5. OFFICE OF CONSUMER
CREDIT COMMISSIONER

CHAPTER 84. MOTOR VEHICLE
INSTALLMENT SALES
SUBCHAPTER G. EXAMINATIONS
7 TAC 84.707 - 84.709
The Finance Commission of Texas (commission) adopts amend-
ments to 84.707 (relating to Files and Records Required
(Retail Sellers Assigning Retail Installment Sales Contracts)),
84.708 (relating to Files and Records Required (Retail Sellers
Collecting Installments on Retail Installment Sales Contracts)),
and 84.709 (relating to Files and Records Required (Holders
Taking Assignment of Retail Installment Sales Contracts)) in 7
TAC Chapter 84, concerning Motor Vehicle Installment Sales.
The commission adopts the amendments to 84.707, 84.708,
and 84.709 without changes to the proposed text as published in
the November 10, 2023, issue of the Texas Register (48 TexReg
6519). The rules will not be republished.
The commission received no official comments on the proposed
amendments.
The rules in 7 TAC Chapter 84 govern motor vehicle retail install-
ment transactions. In general, the purposes of the adopted rule
changes to 7 TAC Chapter 84 are: (1) to implement changes re-
lating to recordkeeping for debt cancellation agreements under
HB 2746 (2023), and (2) to make technical corrections and up-
dates.
The OCCC distributed an early precomment draft of proposed
changes to interested stakeholders for review, and then held a
stakeholder meeting and webinar regarding the rule changes.
The OCCC received one informal precomment on the rule text
draft, discussed later in this preamble. The OCCC appreciates
the thoughtful input provided by stakeholders.
Amendments to 84.707 update recordkeeping requirements for
retail sellers that assign motor vehicle retail installment contracts
to another holder. Amendments at 84.707(d)(2)(A)(iv) remove
a reference to the Tax Collector's Receipt for Texas Title Appli-
cation/Registration/Motor Vehicle Tax handwritten receipt (Form
31-RTS). Based on information from the Texas Department of
Motor Vehicles (TxDMV), the OCCC understands that this form is
obsolete for motor vehicle dealer sales. An amendment removes
current 84.707(d)(2)(E), which requires retail sellers to maintain
the County of Title Issuance form (Form VTR-136). The OCCC
understands that this form is now obsolete and is no longer used,
following the passage of SB 876 (2021) and amendments to
Texas Transportation Code, Chapter 501. Other amendments
throughout 84.707 renumber provisions to be consistent with
these amendments and make technical corrections.

Amendments at 84.707(d)(2)(1) update recordkeeping require-
ments for motor vehicle debt cancellation agreements. Under
Texas Finance Code, 354.007, a buyer is entitled to a refund
of a debt cancellation agreement fee when the agreement termi-
nates due to prepayment of the retail installment contract. The
OCCC has identified failure to provide these refunds as a recur-
ring issue in its examinations of licensees. In examinations con-
ducted between 2016 and 2023, the OCCC instructed licensees
to provide more than $26 million in refunds to consumers as

48 TexReg 8332 December 29, 2023 Texas Register