Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012 Page: 6,868
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the retail buyer's basic comprehensive, collision, or uninsured/un-
derinsured policy or other parties' liability insurance policy for the
settlement of the insured total loss of the motor vehicle; documents that
provide verification of the retail buyer's primary insurance deductible;
if the accident was investigated by a law enforcement officer, a copy
of the offense or police report filed in connection with the total loss
of the motor vehicle; if the accident was not investigated by a law
enforcement officer, a copy of the Texas Department of Public Safety's
"Crash Report" (Form CR-2) ["Driver's Accident Repot" (Form
ST-2)] filed in connection with the total loss of the motor vehicle;
and copies of the checks reflecting the settlement amount paid by the
licensee for the gap insurance claim.
(F) (No change.)
(G) for a retail installment sales transaction where sep-
arate disclosures are required by federal or state law including the fol-
(i) a transaction where disclosures required by the
Truth in Lending Act are not incorporated into the text of the retail in-
stallment sales contract and the credit was extended for primarily for
personal, family, or household purposes, a copy of the Truth in Lend-
ing statement required by Regulation Z, Truth in Lending, 12 C.F.R.
1026.18; [>226-1 et seq.
(ii) (No change.)
(H) for a retail installment sales transaction that has
been repaid in full, evidence of the discharge or release of lien as
prescribed by 43 TAC 217.3 [17 3(h)] (relating to Motor Vehicle
Certificates of Title).
(I) (No change.)
(3) - (7) (No change.)
(8) Adverse action records. Each licensee must maintain
adverse action records regarding all applications relating to Texas Fi-
nance Code, Chapter 348 retail installment sales transactions. Adverse
action records must be maintained according to the record retention re-
quirements contained in Regulation B, Equal Credit Opportunity Act,
12 C.F.R. 1002.12(b) [22 2-b)as amended]. The current retention
periods are 25 months for consumer credit and 12 months for business
(9) (No change.)
(f) Repossession records.
(1) (No change.)
(2) Required information. For a retail installment sales
transaction involving the repossession of the vehicle, the following
records must be maintained, unless otherwise specified:
(A) - (B) (No change.)
(C) for a vehicle disposed of in a public or private sale
as permitted by the Texas Business and [&] Commerce Code, 9.610,
the following documents:
(i) one of the three following notices:
(I) for a transaction not involving consumer
goods, a copy of any Notification of Disposition of Collateral letter
sent to the retail buyer and other obligors as required by Texas Busi-
ness and [&] Commerce Code, 9.613
(II) for a transaction involving consumer goods,
a copy of any Notice of Our Plan to Sell Property as sent to the retail
buyer and other obligors as required by Texas Business and [&] Com-
merce Code, 9.614; or
(III) (No change.)
(ii) - (v) (No change.)
(vi) for a disposition or sale of collateral resulting
in a surplus or deficiency, a copy of the explanation of calculation of
surplus or deficiency as required by Texas Business and [&] Commerce
Code, 9.616, if applicable;
(vii) (No change.)
(D) for a vehicle disposed of using the strict foreclosure
method as permitted by the Texas Business and [&] Commerce Code,
9.620 and 9.621, the following documents:
(i) - (iii) (No change.)
(E) for a vehicle disposed by another authorized method
pursuant to the Texas Business and [&] Commerce Code, Chapter 9, a
copy of any and all records or documents relating to the disposition of
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on August 17, 2012.
Leslie L. Pettijohn
Office of Consumer Credit Commissioner
Earliest possible date of adoption: September 30, 2012
For further information, please call: (512) 936-7621
SUBCHAPTER H. RETAIL INSTALLMENT
SALES CONTRACT PROVISIONS
7 TAC 84.801 - 84.803, 84.805, 84.806
The amendments are proposed under Texas Finance Code,
11.304, which authorizes the commission to adopt rules to
enforce Title 4 of the Texas Finance Code. Additionally, Texas
Finance Code, 348.513 grants the commission the authority
to adopt rules to enforce the motor vehicle installment sales
The statutory provisions affected by the proposed amendments
are contained in Texas Finance Code, Chapter 348.
(1) Model provisions applicable to ordinary vehicles. The
purpose of this subchapter is to provide model provisions and a model
plain language contract in English for Texas Finance Code, Chapter
348 motor vehicle installment sales contract provisions for ordinary
vehicles. The establishment of model provisions for these transactions
will encourage the use of simplified wording that will ultimately ben-
efit consumers by making these contracts easier to understand. Use
of the "plain language" model contract by a seller is not mandatory.
Except for retail installment sales contracts involving commercial ve-
hicles, the seller, however, may not use a contract other than a model
contract unless the seller has submitted the contract to the commis-
sioner in compliance with 84.802 of this title (relating to Non-Stan-
dard Contract Filing Procedures). The commissioner will [shall] issue
an order disapproving the contract if the commissioner determines the
contract does not comply with this section or rules adopted under this
37 TexReg 6868 August 31, 2012 Texas Register
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Texas. Secretary of State. Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012, periodical, August 31, 2012; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth253227/m1/50/: accessed March 29, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.