Texas Finance Code Title 4, Chapter 348 - Motor Vehicle Installment Sales

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 348.001 - Definitions
  In this chapter: (1) "Buyer's order" means a nonbinding, preliminary written computation relating to the purchase in a retail installment transaction of a motor vehicle...
• Texas Section 348.0015 - Presumption Regarding Noncommercial Vehicles; Exception
  (a) A motor vehicle that is not described by Section 353.001(1)(A), (B), or (C) or a motor vehicle that is of a type typically used...
• Texas Section 348.002 - Bailment Or Lease As Retail Installment Transaction
  A bailment or lease of a motor vehicle is a retail installment transaction if the bailee or lessee: (1) contracts to pay as compensation for...
• Texas Section 348.003 - Classification As Retail Installment Transaction Unaffected
  A transaction is not excluded as a retail installment transaction because: (1) the retail seller arranges to transfer the retail buyer's obligation; (2) the amount...
• Texas Section 348.004 - Cash Price
  (a) The cash price is the price at which the retail seller offers in the ordinary course of business to sell for cash the goods...
• Texas Section 348.005 - Itemized Charge
  An amount in a retail installment contract is an itemized charge if the amount is not included in the cash price and is the amount...
• Texas Section 348.006 - Principal Balance; Inclusion Of Documentary Fee
  (a) The principal balance under a retail installment contract is computed by: (1) adding: (A) the cash price of the motor vehicle; (B) each amount...
• Texas Section 348.007 - Applicability Of Chapter
  (a) Except as otherwise provided by this section, each retail installment transaction is subject to this chapter. (a-1) A transaction in which a retail buyer...
• Texas Section 348.008 - Applicability Of Other Statutes To Retail Installment Transaction
  (a) A loan or interest statute of this state, other than Chapter 303, does not apply to a retail installment transaction. (b) Except as provided...
• Texas Section 348.009 - Federal Disclosure Requirements Applicable
  (a) The disclosure requirements of 12 C.F.R. Part 226 (Regulation Z) adopted under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) and...
• Texas Section 348.0091 - Disclosure Of Equity In Trade-in Motor Vehicle
  (a) A retail seller may not accept a trade-in motor vehicle for a motor vehicle sold under a retail installment contract unless the retail seller...
• Texas Section 348.010 - Additional Information Allowed In Contract
  Information not required by this chapter may be included in a retail installment contract. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1,
• Texas Section 348.011 - Order Of Items In Contract
  Items required by this chapter to be in a retail installment contract are not required to be stated in the order set forth in this...
• Texas Section 348.012 - Applicability Of Insurance Premium Financing Provisions
  Chapter 651, Insurance Code, does not apply to a retail installment transaction. Added by Acts 2001, 77th Leg., ch. 1235, Sec. 17, eff. Sept. 1,...

SUBCHAPTER B RETAIL INSTALLMENT CONTRACT

• Texas Section 348.013 - Conditional Delivery Agreement
  (a) In this section, "conditional delivery agreement" means a contract between a retail seller and prospective retail buyer under the terms of which the retail...
• Texas Section 348.101 - Retail Installment Contract General Requirements
  (a) A retail installment contract is required for each retail installment transaction. A retail installment contract may be more than one document. (b) A retail...
• Texas Section 348.1015 - Contract Conditioned On Subsequent Assignment Prohibited
  (a) A retail installment contract may not be conditioned on the subsequent assignment of the contract to a holder. (b) A provision in violation of...
• Texas Section 348.102 - Contents Of Contract
  (a) A retail installment contract must contain: (1) the name of the retail seller and the name of the retail buyer; (2) the place of...
• Texas Section 348.103 - Time Price Differential For Retail Installment Contract
  A retail installment contract may provide for: (1) any amount of time price differential permitted under Section 348.104, 348.105, or 348.106; or (2) any rate...
• Texas Section 348.104 - Time Price Differential For Contract With Equal Monthly Successive Payments
  (a) A retail installment contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract may provide...
• Texas Section 348.105 - Use Of Optional Ceiling
  As an alternative to the maximum rate or amount authorized for a time price differential under Section 348.104 or 348.106, a retail installment contract may...
• Texas Section 348.106 - Time Price Differential For Other Contracts
  A retail installment contract that is payable other than in substantially equal successive monthly installments or the first installment of which is not payable one...
• Texas Section 348.107 - Charge For Default In Payment Of Installment
  (a) A retail installment contract may provide that if an installment remains unpaid after the 15th day after the maturity of the installment the holder...
• Texas Section 348.108 - Charges For Collecting Debt
  A retail installment contract may provide for the payment of: (1) reasonable attorney's fees if the contract is referred for collection to an attorney who...
• Texas Section 348.109 - Acceleration Of Debt Maturity
  A retail installment contract may not authorize the holder to accelerate the maturity of all or a part of the amount owed under the contract...
• Texas Section 348.110 - Delivery Of Copy Of Contract
  A retail seller shall: (1) deliver to the retail buyer a copy of the retail installment contract as accepted by the retail seller; or (2)...
• Texas Section 348.111 - Buyer's Right To Rescind Contract
  Until the retail seller complies with Section 348.110, a retail buyer who has not received delivery of the motor vehicle is entitled to: (1) rescind...
• Texas Section 348.112 - Buyer's Acknowledgment Of Delivery Of Contract Copy
  (a) Any retail buyer's acknowledgment of delivery of a copy of the retail installment contract must: (1) be in at least 10-point type that is...
• Texas Section 348.113 - Amendment Of Retail Installment Contract
  On request by a retail buyer, the holder may agree to one or more amendments to the retail installment contract to: (1) extend or defer...
• Texas Section 348.114 - Charges For Deferring Installment
  (a) If a retail installment contract is amended to defer all or a part of one or more installments for not longer than three months,...
• Texas Section 348.115 - Charge For Other Amendment
  (a) If the unpaid balance of a retail installment contract is extended, renewed, restated, or rescheduled under this subchapter and Section 348.114 does not apply,...
• Texas Section 348.116 - Confirmation Of Amendment
  An amendment to a retail installment contract must be confirmed in a writing signed by the retail buyer. The holder shall: (1) deliver a copy...
• Texas Section 348.117 - Contract After Amendment
  After amendment the retail installment contract is the original contract and each amendment to the original contract. Acts 1997, 75th Leg., ch. 1008, Sec. 1,...
• Texas Section 348.118 - Prepayment Of Contract
  A retail buyer may prepay a retail installment contract in full at any time before maturity. This section prevails over a conflicting provision of the...
• Texas Section 348.119 - Refund Credit On Prepayment
  If a retail buyer prepays a retail installment contract in full or if the holder of the contract demands payment of the unpaid balance of...
• Texas Section 348.120 - Amount Of Refund Credit For Monthly Installment Contract
  (a) This section applies only to a refund credit on the prepayment of a retail installment contract that is payable in substantially equal successive monthly...
• Texas Section 348.121 - Amount Of Refund Credit For Other Contracts
  The minimum amount of the refund credit on a retail installment contract to which Section 348.120 does not apply shall be computed in a manner...
• Texas Section 348.122 - Reinstatement Of Contract After Demand For Payment
  After a demand for payment in full under a retail installment contract, the retail buyer and holder of the contract may: (1) agree to reinstate...
• Texas Section 348.123 - Refinancing Of Large Installment
  (a) If a scheduled installment of a retail installment contract is more than an amount equal to twice the average of all installments scheduled before...

SUBCHAPTER C INSURANCE

• Texas Section 348.124 - Debt Cancellation Agreements
  (a) In connection with a retail installment transaction under this chapter, a retail seller may offer to the retail buyer a debt cancellation agreement, including...
• Texas Section 348.201 - Property Insurance
  (a) A holder may request or require a retail buyer to insure the motor vehicle purchased under a retail installment transaction and accessories and related...
• Texas Section 348.202 - Credit Life And Credit Health And Accident Insurance
  (a) As additional protection for the contract, a holder may request or require a retail buyer to provide credit life insurance and credit health and...
• Texas Section 348.203 - Maximum Amount Of Credit Life And Credit Health And Accident Coverage
  (a) At any time the total amount of the policies of credit life insurance in force on one retail buyer on one retail installment contract...
• Texas Section 348.204 - Insurance Statement
  (a) If insurance is required in connection with a retail installment contract, the holder shall give to the retail buyer a written statement that clearly...
• Texas Section 348.205 - Statement If Liability Insurance Not Included In Contract
  If liability insurance coverage for bodily injury and property damage caused to others is not included in a retail installment contract, the retail installment contract...
• Texas Section 348.206 - Insurance May Be Furnished By Buyer
  (a) If insurance is requested or required in connection with a retail installment contract and the retail installment contract includes a premium or rate of...
• Texas Section 348.207 - Buyer's Failure To Provide Evidence Of Insurance
  (a) If a retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the...
• Texas Section 348.208 - Charges For Other Insurance And Forms Of Protection Included In Retail Installment Contract
  (a) A retail buyer and retail seller may agree in a retail installment contract to include a charge for insurance coverage that is: (1) for...
• Texas Section 348.209 - Requirements For Including Insurance Cost In Contract
  (a) If insurance is included as an itemized charge in a retail installment contract: (1) the insurance must be written: (A) at lawful rates; (B)...
• Texas Section 348.210 - Delivery Of Insurance Document To Buyer
  A holder who purchases dual interest insurance on the motor vehicle shall within a reasonable time after execution of the retail installment contract send or...
• Texas Section 348.211 - Holder's Duty If Insurance Is Adjusted Or Terminated
  (a) If insurance for which a charge is included in or added to a retail installment contract is canceled, adjusted, or terminated, the holder shall,...
• Texas Section 348.212 - Gain Or Advantage From Insurance Not Additional Charge
  Any gain or advantage to the holder or the holder's employee, officer, director, agent, general agent, affiliate, or associate from insurance or the provision or...
• Texas Section 348.213 - Adding To Retail Installment Contract Premiums For Insurance Acquired After Transaction
  (a) A retail buyer and holder may agree to add to the unpaid balance of a retail installment contract premiums for insurance policies obtained after...
• Texas Section 348.214 - Effect Of Adding Premium To Contract
  If a premium is added to the unpaid balance of a retail installment contract under Section 348.207 or 348.213, the rate applicable to the time...

SUBCHAPTER D ACQUISITION OF CONTRACT OR BALANCE

• Texas Section 348.215 - Financing Entity May Not Require Insurance From Particular Source
  If a retail installment contract presented to a financing entity for acceptance includes any insurance coverage, the financing entity may not directly or indirectly require,...
• Texas Section 348.301 - Authority To Acquire
  A person may acquire a retail installment contract or an outstanding balance under a contract from another person on the terms, including the price, to...
• Texas Section 348.302 - Lack Of Notice Does Not Affect Validity As To Certain Creditors
  Notice to a retail buyer of an assignment or negotiation of a retail installment contract or an outstanding balance under the contract or a requirement...

SUBCHAPTER E HOLDER'S RIGHTS, DUTIES, AND LIMITATIONS

• Texas Section 348.303 - Payment By Buyer
  Unless a retail buyer has notice of the assignment or negotiation of the buyer's retail installment contract or an outstanding balance under the contract, a...
• Texas Section 348.403 - Seller's Promise To Pay Or Tender Of Cash To Buyer As Part Of Transaction
  A retail seller may not promise to pay, pay, or otherwise tender cash to a retail buyer as a part of a transaction under this...
• Texas Section 348.404 - Seller's Action For Incentive Program Or To Pay For Buyer's Motor Vehicle
  (a) A retail seller may pay, promise to pay, or tender cash or another thing of value to the manufacturer, distributor, or retail buyer of...
• Texas Section 348.405 - Statement Of Payments And Amount Due Under Contract
  (a) On written request of a retail buyer, the holder of a retail installment contract shall give or send to the buyer a written statement...
• Texas Section 348.406 - Receipt For Cash Payment
  A holder of a retail installment contract shall give the retail buyer a written receipt for each cash payment. Acts 1997, 75th Leg., ch. 1008,...
• Texas Section 348.407 - Retention Or Disposition Of Nonattached Personal Property
  (a) If a retail installment contract authorizes the holder or a person acting on the holder's behalf to retain or dispose of tangible personal property...
• Texas Section 348.408 - Outstanding Balance Information; Payment In Full
  (a) The holder of a retail installment contract who gives the retail buyer or the buyer's designee outstanding balance information relating to the contract is...
• Texas Section 348.409 - Liability Relating To Outstanding Balance Information
  A holder who violates Section 348.408 is liable to the retail buyer or the buyer's designee in an amount computed by adding: (1) three times...
• Texas Section 348.410 - Prohibition On Power Of Attorney To Confess Judgment Or Assignment Of Wages
  A retail installment contract may not contain: (1) a power of attorney to confess judgment in this state; or (2) an assignment of wages. Acts...
• Texas Section 348.411 - Prohibition On Certain Acts Of Repossession
  A retail installment contract may not: (1) authorize the holder or a person acting on the holder's behalf to: (A) enter the retail buyer's premises...
• Texas Section 348.412 - Buyer's Waiver
  (a) A retail installment contract may not: (1) provide for a waiver of the retail buyer's rights of action against the holder or a person...
• Texas Section 348.413 - Transfer Of Equity
  (a) With the written consent of the holder, a retail buyer may transfer at any time the buyer's equity in the motor vehicle subject to...

SUBCHAPTER F LICENSING; ADMINISTRATION OF CHAPTER

• Texas Section 348.414 - Automobile Club Membership Offered In Connection With Retail Installment Contract
  (a) A retail seller may, at the time a retail installment contract is executed, offer to sell to the retail buyer an automobile club membership....
• Texas Section 348.501 - License Required
  (a) A person may not act as a holder under this chapter unless the person: (1) is an authorized lender or a credit union; or...
• Texas Section 348.5015 - Residential Mortgage Loan Originator License Required
  (a) In this section, "Nationwide Mortgage Licensing System and Registry" and "residential mortgage loan originator" have the meanings assigned by Section 180.002. (b) Unless exempt...
• Texas Section 348.502 - Application Requirements
  (a) The application for a license under this chapter must: (1) be under oath; (2) identify the applicant's principal parties in interest; and (3) contain...
• Texas Section 348.503 - Investigation Of Application
  On the filing of an application and payment of the required fees, the commissioner shall conduct an investigation to determine whether to issue the license....
• Texas Section 348.504 - Approval Or Denial Of Application
  (a) The commissioner shall approve the application and issue to the applicant a license under this chapter if the commissioner finds that: (1) the financial...
• Texas Section 348.505 - Disposition Of Fees On Denial Of Application
  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the...
• Texas Section 348.506 - Annual License Fee
  Not later than December 1, a license holder shall pay to the commissioner for each license held an annual fee for the year beginning the...
• Texas Section 348.507 - Expiration Of License On Failure To Pay Annual Fee
  If the annual fee for a license is not paid before the 16th day after the date on which the written notice of delinquency of...
• Texas Section 348.508 - License Suspension Or Revocation
  After notice and a hearing the commissioner may suspend or revoke a license if the commissioner finds that: (1) the license holder failed to pay...
• Texas Section 348.509 - Reinstatement Of Suspended License; Issuance Of New License After Revocation
  The commissioner may reinstate a suspended license or issue a new license on application to a person whose license has been revoked if at the...
• Texas Section 348.510 - Surrender Of License
  A license holder may surrender a license issued under this chapter by delivering to the commissioner: (1) the license; and (2) a written notice of...
• Texas Section 348.511 - Effect Of License Suspension, Revocation, Or Surrender
  (a) The suspension, revocation, or surrender of a license issued under this chapter does not affect the obligation of a contract between the license holder...
• Texas Section 348.512 - Transfer Or Assignment Of License
  A license may be transferred or assigned only with the approval of the commissioner. Added by Acts 2001, 77th Leg., ch. 1235, Sec. 18, eff....
• Texas Section 348.513 - Adoption Of Rules
  (a) The finance commission may adopt rules to: (1) enforce this chapter; or (2) modify the standard form as required by Section 348.0091 to: (A)...
• Texas Section 348.514 - Examination; Access To Records
  (a) At the times the commissioner considers necessary, the commissioner or the commissioner's representative shall: (1) examine each place of business of each license holder;...
• Texas Section 348.515 - General Investigation
  To discover a violation of this chapter or to obtain information required under this chapter, the commissioner or the commissioner's representative may investigate the records,...
• Texas Section 348.516 - Payment Of Examination Costs And Administration Expenses
  A license holder shall pay to the commissioner an amount determined as provided by Section 14.107 and assessed by the commissioner to cover the direct...
• Texas Section 348.517 - License Holder's Records; Document Retention Requirements
  (a) A license holder shall maintain a record of each retail installment transaction made under this chapter as is necessary to enable the commissioner to...

SUBCHAPTER G CERTAIN DEBT CANCELLATION AGREEMENTS

• Texas Section 348.518 - Sharing Of Information
  To ensure consistent enforcement of law and minimization of regulatory burdens, the commissioner and the Texas Department of Motor Vehicles may share information, including criminal...
• Texas Section 348.601 - Limitation On Certain Debt Cancellation Agreements
  (a) This subchapter applies only to a debt cancellation agreement that includes insurance coverage as part of the retail buyer's responsibility to the holder. (b)...
• Texas Section 348.602 - Debt Cancellation Agreements Exclusion Language
  (a) In addition to the provisions required by Section 348.603, a debt cancellation agreement must fully disclose all provisions permitting the exclusion of loss or...
• Texas Section 348.603 - Required Debt Cancellation Agreement Language
  A debt cancellation agreement must state: (1) the contact information of the retail seller, the holder, and any administrator of the agreement; (2) the name...
• Texas Section 348.604 - Approval Of Forms For Debt Cancellation Agreements
  (a) Debt cancellation agreement forms must be submitted to the commissioner for approval. Debt cancellation agreement forms may include additional language to supplement the terms...
• Texas Section 348.605 - Additional Requirements For Debt Cancellation Agreements
  (a) If a retail buyer purchases a debt cancellation agreement, the retail seller must provide to the retail buyer a true and correct copy of...
• Texas Section 348.606 - Refund For Debt Cancellation Agreements
  (a) A refund or credit of the debt cancellation agreement fee must be based on the earliest date of: (1) the prepayment of the retail...

Last modified: September 28, 2016