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House Bill 2556 |
House Author: Solomons |
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Effective: 9-1-09 |
Senate Sponsor: Carona |
House Bill 2556 amends the Finance Code to authorize a retail seller and prospective retail buyer to enter into a conditional delivery agreement under the terms of which the retail seller allows the retail buyer the use and benefit of a motor vehicle for a specified term not to exceed 15 days. The bill makes such an agreement void on the execution of a retail installment contract between the two parties for the sale of the motor vehicle, prohibits such an agreement from conferring any rights of ownership, including ownership of that motor vehicle, and sets forth the obligations of each party with respect to the return of the vehicle in question and of any trade-in vehicle, down payment, or other consideration tendered by the prospective buyer under the agreement in the event that the seller and buyer do not subsequently enter into a retail installment contract.
House Bill 2556 authorizes the consumer credit commissioner to review the terms of such an agreement if the buyer and seller do not subsequently enter into a retail installment contract and to assess an administrative penalty against the seller if the seller fails to meet certain conditions. The bill authorizes either the seller or the buyer to appeal a determination by the commissioner and provides for a hearing of the appeal under the Administrative Procedure Act.
House Bill 2556 prohibits a retail installment contract from being conditioned on the subsequent assignment of the contract to a holder and grants the commissioner exclusive jurisdiction to enforce provisions relating to this prohibition, except as otherwise provided by the bill.