Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007 Page: 7,918
7777-8060 p. ; 28 cm.View a full description of this periodical.
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commission declines to adopt this change, as this definition is
intended to include such initial advertising.
Compliance with these rules is optional prior to March 1, 2008.
Property tax lenders under this chapter should apply for licensure
no later than March 1, 2008.
The new sections are adopted under Texas Finance Code,
351.007 (Acts 2007, 80th Leg., ch. 1220), which authorizes
the Finance Commission to adopt rules to ensure compliance
with the "Property Tax Lender License Act."
The statutory provisions affected by the adopted new sections
are contained in Texas Finance Code, Chapter 351, Property
Tax Lenders, known as the "Property Tax Lender License Act"
(Acts 2007, 80th Leg., ch. 1220, eff. Sept. 1, 2007).
89.102. Definitions.
Words and terms used in this chapter that are defined in Texas Finance
Code, Chapter 351, Property Tax Lenders, known as the "Property Tax
Lender License Act" (Acts 2007, 80th Leg., ch. 1220), have the same
meanings as defined in Chapter 351. The following words and terms,
when used in this chapter, shall have the following meanings, unless
the context clearly indicates otherwise.
(1) Borrower--The borrower in a property tax loan is the
property owner.
(2) Commissioner--The Consumer Credit Commissioner
of the State of Texas.
(3) Date of consummation--The date of closing or execu-
tion of a loan contract.
(4) Licensee--Any person who has been issued a property
tax lender license pursuant to Texas Finance Code, Chapter 351, Prop-
erty Tax Lenders, known as the "Property Tax Lender License Act"
(Acts 2007, 80th Leg., ch. 1220).
(5) Making a loan--The act of making a loan is either the
determination of the credit decision to provide the loan, the act of fund-
ing the loan, or the act of advancing money on behalf of a borrower to
a third party. A person whose name appears on the loan documents as
the payee of the note is considered to have "made" the loan.
(6) Negotiating a loan--The process of submitting and con-
sidering offers between a borrower and a lender with the objective of
reaching agreement on the terms of a loan. The act of passing informa-
tion between the parties can, by itself, be considered "negotiation" if it
was part of the process of reaching agreement on the terms of a loan.
"Negotiation" involves acts which take place before an agreement to
lend or funding of a loan actually occurs.
(7) OCCC--The Office of Consumer Credit Commissioner
of the State of Texas.
(8) Transacting a loan--Any of the significant events asso-
ciated with the lending process through funding, including the prepara-
tion, negotiation and execution of loan documents, and an advancement
of money on behalf of a borrower by the lender to a third party. This
also includes the act of arranging a loan.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of the Secretary of State on October 19,
2007.
TRD-200705009Leslie L. Pettijohn
Commissioner
Office of Consumer Credit Commissioner
Effective date: November 8, 2007
Proposal publication date: August 31, 2007
For further information, please call: (512) 936-7621
SUBCHAPTER B. AUTHORIZED ACTIVITIES
7 TAC 89.201 - 89.206
The Finance Commission of Texas (commission) adopts new 7
TAC Chapter 89, 89.201 - 89.206, concerning Property Tax
Lenders. The new rules contained in 7 TAC 89.201 - 89.206
outline Subchapter B, concerning Authorized Activities. Section
89.202 and 89.206 are adopted with changes to the proposed
text as published in the August 31, 2007, issue of the Texas Reg-
ister (32 TexReg 5569) Section 89.201 and 89.203 - 89.205
are adopted without changes and will not be republished.
In general, the purpose of the new rules is to establish applica-
tion and licensing procedures as required under Texas Finance
Code, Chapter 351, Property Tax Lenders, known as the "Prop-
erty Tax Lender License Act" (Acts 2007, 80th Leg., ch. 1220), as
enacted by the Texas Legislature in House Bill 2138 (HB 2138).
These rules address authorized activities related to licensing.
The individual purposes of each rule are provided below.
The commission received one written comment on the proposal
from the Texas Property Tax Lenders Association. The com-
menter offered several suggested changes and concerns. Since
the proposal, the commission has incorporated some changes
to address the commenter's concerns and has declined to adopt
other suggestions. The commission's responses to each spe-
cific comment are included after the individual rule purposes in
the paragraphs that follow.
Section 89.201 provides for the responsibility of licensees for the
acts of their agents.
Section 89.202 requires that each officer, director, employee,
and agent of a licensee have a working knowledge of the laws
and regulations applicable to the licensee's business.
The commenter offers two changes regarding 89.202. First, the
commenter recommends that following the word "employee," the
phrase "who deals with potential borrowers" should be added.
The commenter states that "[n]ot every employee needs to know
about the Finance Code, e.g., janitors, runners." The commis-
sion agrees with the commenter that this is a reasonable clarifi-
cation on the applicability of this section. Thus, the commission
has added a clarifying sentence to the end of 89.202, expand-
ing on the suggested phrase of the commenter. Even without
this revised language, however, the agency reviews each en-
forcement decision on a case-by-case basis. Sections parallel
to 89.202 in other chapters have been consistently applied on
a fact-specific basis. Consequently, the agency would not seek
to enforce 89.202 against a janitor who does not have any con-
tact with borrowers or potential borrowers.
Second, also in reference to 89.202, the commenter suggests
that a reference to Texas Tax Code, 32.06 and 32.065 be
added after the phrase "its implementing regulations." The com-
mission agrees with the addition of a reference to the Tax Code
and has included that change in this adoption.32 TexReg 7918 November 2, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007, periodical, November 2, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97421/m1/138/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.