|
Senate Bill 1965 |
Senate Author: Harris |
|
Effective: 9-1-09 |
House Sponsor: Geren et al. |
Senate Bill 1965 amends the Finance Code to establish that a retail transaction in which a retail buyer purchases a commercial vehicle is subject only to the statutory provisions enumerated in the bill.
Senate Bill 1965 excludes insurance on a commercial vehicle securing a retail installment contract from the types of coverage considered collateral protection insurance, exempts a contract for a commercial vehicle from requirements regarding the form prescribed for a contract for a retail installment transaction, and exempts a buyer's order or retail installment contract for a commercial vehicle from certain notice requirements relating to the documentary fee to be included in the principal balance of a retail installment contract for other motor vehicles.
Senate Bill 1965 defines a "commercial vehicle" according to use, weight, and ownership; establishes a presumption that a motor vehicle is not a commercial vehicle if the vehicle is not described by that definition or is of a type typically used for personal, family, or household use, as determined by finance commission rule; and authorizes a retail seller or contract holder to whom a retail buyer represents in writing that a motor vehicle is not for personal, family, or household use or that the vehicle is for commercial use to rely on that representation unless the seller or holder knows that the representation is not true.
Senate Bill 1965 authorizes the following additional amounts to be included, either as itemized charges or in the cash price, in a retail installment contract for a commercial vehicle:
· any fees prescribed by law
· any amounts charged by a titling or registration service relating to the sale
· any other amount agreed to by the retail buyer and retail seller
· an amount paid as consideration for the contract holder's agreement to waive all or part of the difference between the amount owed under the contract and the amount paid under a physical damage insurance policy maintained by the retail buyer in the event the vehicle is a total loss, all or part of the amount owed in the event of the retail buyer's death, or one or more payments owed in the event of the retail buyer's disability
A retail installment contract for a commercial vehicle, in addition to other charges for insurance coverage authorized by law, also may include a charge for insurance coverage relating to the commercial vehicle, the use of the commercial vehicle, or the retail installment contract, but such coverage may be provided only by an insurer authorized to do business in Texas or, if permitted under law, a surplus lines insurer eligible to provide the insurance.
Senate Bill 1965 prohibits a retail installment contract for a commercial vehicle from authorizing the holder to accelerate the maturity of all or a part of the amount owed under the contract unless the retail buyer or the buyer's affiliate is in default in its obligations under another financing agreement or leasing agreement held by the same holder or an affiliate of the holder.