Texas Finance Code Title 4, Chapter 353 - Commercial Motor Vehicle Installment Sales

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 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)...
• Texas Section 353.002 - 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 353.003 - Bailment Or Lease As Retail Installment Transaction
  (a) A bailment or lease of a commercial vehicle is a retail installment transaction if the bailee or lessee: (1) contracts to pay as compensation...
• Texas Section 353.004 - 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 353.005 - 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 353.006 - 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 353.007 - Additional Charges Permitted
  (a) In addition to the amounts allowed under Sections 353.005 and 353.006, the following amounts may be included as an itemized charge or in the...
• Texas Section 353.008 - 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 commercial vehicle; (B) each amount...
• Texas Section 353.009 - Applicability Of Chapter
  (a) Except as provided by this section, this chapter applies to a retail installment transaction for a commercial vehicle if the retail installment contract states...
• Texas Section 353.010 - 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 subject to this chapter....
• Texas Section 353.011 - Federal Disclosure Requirements
  If a disclosure requirement of this chapter and one of a federal law, including a regulation or an interpretation of federal law, are inconsistent or...
• Texas Section 353.012 - Additional Information Allowed In Contract
  Information not required by this chapter may be included in a retail installment contract. Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559),...
• Texas Section 353.013 - 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 353.014 - Applicability Of Insurance Premium Financing Provisions
  Chapter 651, Insurance Code, does not apply to a retail installment transaction. Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17,...
• Texas Section 353.015 - 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...

SUBCHAPTER B RETAIL INSTALLMENT CONTRACT

• Texas Section 353.016 - Computation Of Time Price Differential Using True Daily Earnings Method
  Under the true daily earnings method, the earned time price differential is computed by multiplying the daily rate of the time price differential by the...
• Texas Section 353.101 - Retail Installment Contract General Requirements
  (a) A retail installment contract is required for each retail installment transaction in which the retail buyer is purchasing a commercial vehicle. A retail installment...
• Texas Section 353.102 - 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 353.103 - Time Price Differential For Retail Installment Contract
  (a) A retail installment contract may provide for: (1) any amount of time price differential permitted under Section 353.104, 353.105, or 353.106; or (2) any...
• Texas Section 353.104 - 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 353.105 - Use Of Optional Ceiling
  As an alternative to the maximum rate or amount authorized for a time price differential under Section 353.104 or 353.106, a retail installment contract may...
• Texas Section 353.106 - 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 353.107 - Charge For Default In Payment Of Installment
  (a) A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment for a...
• Texas Section 353.108 - 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 353.109 - 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 353.110 - 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 353.111 - Buyer's Right To Rescind Contract
  Until the retail seller complies with Section 353.110, a retail buyer who has not received delivery of the commercial vehicle is entitled to: (1) rescind...
• Texas Section 353.112 - 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 353.113 - 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 353.114 - 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 353.115 - 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 353.114 does not apply,...
• Texas Section 353.116 - 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 353.117 - Contract After Amendment
  After amendment the retail installment contract is the original contract and each amendment to the original contract. Added by Acts 2011, 82nd Leg., R.S., Ch....
• Texas Section 353.118 - 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 353.119 - Refund Credit On Prepayment
  (a) This section does not apply to a retail installment contract in which the time price differential is computed using the true daily earnings method....
• Texas Section 353.120 - Amount Of Refund Credit For Monthly Installment Contract
  (a) This section: (1) applies only to a refund credit on the prepayment of a retail installment contract that is payable in substantially equal successive...
• Texas Section 353.121 - Refund On Contracts Using Scheduled Installment Earnings Method
  (a) This section: (1) applies to a retail installment contract: (A) that includes precomputed time price differential; and (B) to which Section 353.120 does not...

SUBCHAPTER C INSURANCE

• Texas Section 353.122 - 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 353.201 - Property Insurance
  (a) A holder may require a retail buyer to insure the commercial vehicle purchased under a retail installment transaction and accessories and related goods subject...
• Texas Section 353.202 - Credit Life And Credit Health And Accident Insurance
  (a) A holder may require a retail buyer to provide credit life insurance and credit health and accident insurance. (b) The holder may offer to...
• Texas Section 353.203 - 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 353.204 - 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 353.205 - 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 353.206 - 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 353.207 - Charges For Other Insurance And Forms Of Protection Included In Retail Installment Contract
  (a) A retail installment contract may include as a separate charge an amount for insurance coverage that is: (1) for a risk of loss or...
• Texas Section 353.208 - 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 353.209 - 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 353.210 - 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 353.211 - Effect Of Adding Premium To Contract
  If a premium is added to the unpaid balance of a retail installment contract under Section 353.206 or 353.210, the rate applicable to the time...

SUBCHAPTER D ACQUISITION OF CONTRACT OR BALANCE

• Texas Section 353.212 - 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 353.301 - 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 353.302 - 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 353.303 - 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 353.401 - 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 353.402 - 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 353.403 - 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 353.404 - Receipt For Cash Payment
  A holder of a retail installment contract shall give the retail buyer a written receipt for each cash payment. Added by Acts 2011, 82nd Leg.,...
• Texas Section 353.405 - 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 353.406 - Liability Relating To Outstanding Balance Information
  A holder who violates Section 353.405 is liable to the retail buyer or the buyer's designee in an amount computed by adding: (1) three times...
• Texas Section 353.407 - 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. Added...
• Texas Section 353.408 - 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 353.409 - 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...

SUBCHAPTER F LICENSING; ADMINISTRATION OF CHAPTER

• Texas Section 353.410 - 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 commercial vehicle subject to...
• Texas Section 353.501 - 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 353.502 - 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 353.503 - 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 353.504 - 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 the financial responsibility,...
• Texas Section 353.505 - 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 353.506 - 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 353.507 - 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 353.508 - 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 353.509 - 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 353.510 - 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 353.511 - 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 353.512 - Transfer Or Assignment Of License
  A license may be transferred or assigned only with the approval of the commissioner. Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559),...
• Texas Section 353.513 - Adoption Of Rules
  (a) The finance commission may adopt rules to enforce this chapter. (b) The commissioner shall recommend proposed rules to the finance commission. Added by Acts...
• Texas Section 353.514 - 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 353.515 - 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...

Last modified: September 28, 2016