Sec. 353.001. DEFINITIONS. In this chapter:
(1) "Commercial vehicle" means a motor vehicle that is not used primarily for personal, family, or household use. The term includes:
(A) a motor vehicle with a gross vehicular weight of 10,001 pounds or more;
(B) a motor vehicle that will be owned by a corporation, limited liability company, limited partnership, or other business entity formed, organized, or registered in this state, another state, or another country; and
(C) a motor vehicle that will be part of a fleet of five or more vehicles owned by the same person.
(2) "Debt cancellation agreement" means an agreement of the holder of the retail installment contract to waive:
(A) all or part of the difference between the amount owed under a retail installment contract and the amount paid under a physical damage insurance policy maintained by the retail buyer or its assign, in the event of a total loss or theft of the commercial vehicle;
(B) all or part of the amount owed under the retail installment contract, in the event of the death of the retail buyer; or
(C) one or more payments owed under the retail installment contract, in the event of the disability of the retail buyer.
(3) "Heavy commercial vehicle" means:
(A) a commercial vehicle that has a gross vehicular weight of 19,000 pounds or more; or
(B) a trailer or semitrailer designed for use in combination with a vehicle described by Paragraph (A).
(4) "Holder" means a person who is:
(A) a retail seller; or
(B) the assignee or transferee of a retail installment contract.
(5) "Motor vehicle" has the meaning assigned by Section 348.001.
(6) "Precomputed earnings method" means a method of computing the time price differential in which the time price differential is computed at the inception of the contract based on the principal balance for the full contract term, as if the principal balance under the contract will not decline over the term of the contract, and in which the retail buyer agrees to pay the total of payments that includes both the principal balance of the contract and the time price differential.
(7) "Retail buyer" means a person who purchases or agrees to purchase a commercial vehicle from a retail seller in a retail installment transaction.
(8) "Retail installment contract" means one or more instruments entered into in this state that evidence a retail installment transaction. The term includes a security agreement and a document that evidences a bailment or lease described by Section 353.003.
(9) "Retail installment transaction" means a transaction in which a retail buyer purchases a commercial vehicle from a retail seller other than principally for the purpose of resale and agrees with the retail seller to pay part or all of the cash price in one or more deferred installments.
(10) "Retail seller" means a person in the business of selling commercial vehicles to retail buyers in retail installment transactions.
(11) "Scheduled installment earnings method" means a method of computing the time price differential by applying a daily rate to the unpaid principal balance as if each scheduled payment will be paid on the payment's scheduled installment date.
(12) "Time price differential" means the total amount added to the principal balance to determine the balance of the retail buyer's indebtedness under a retail installment contract.
(13) "True daily earnings method" means a method of computing the time price differential by applying a daily rate to the unpaid principal balance based on the actual payment date as provided by Section 353.016.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.
Section: 353.001 353.002 353.003 353.004 353.005 353.006 353.007 353.008 353.009 353.010 353.011 353.012 353.013 353.014 353.015 NextLast modified: September 28, 2016