By Marchant                                           H.B. No. 2122
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to retail installment contracts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 7.02, Article 5069, Revised Civil
    1-5  Statutes, is amended by amending Subsection (6) to read as follows:
    1-6  (6)  The retail installment contract shall specifically set out the
    1-7  following items:
    1-8        (a)  The cash price as defined in Article 7.01;
    1-9        (b)  The amount of the buyer's down payment, if any,
   1-10  specifying the amounts paid in money and in goods traded in;
   1-11        (c)  Any itemized charges, as defined in Article 7.01.
   1-12  However, if the contract provides for either a fixed contract rate
   1-13  or a variable contract rate, <as an alternative to the time price
   1-14  differential as authorized by Section (7), Article 7.03>, the
   1-15  contract shall (i)  in the case of a fixed contract rate set forth
   1-16  the contract rate, (ii)  in the case of a variable contract rate
   1-17  set forth <set out> the method by which that rate is computed, and
   1-18  <the contract for heavy commercial vehicles is not required to set
   1-19  out> (iii)  in either case set forth the total amount of the time
   1-20  price differential<.>; provided, however, that for the purpose of
   1-21  disclosure on the contract date, the total amount of time price
   1-22  differential may be calculated using (a)  in the case of a variable
   1-23  contract rate, an assumed contract rate equal to the contract rate
    2-1  in effect on the date of the contract even  though the actual
    2-2  contract rate may increase or decrease during the term of such
    2-3  contract, and (b) the assumption that each installment payment will
    2-4  be received on its due date.  Notwithstanding the foregoing, and
    2-5  except with respect to any contract for heavy commercial vehicles,
    2-6  the disclosure requirements of Regulation Z of the federal Truth in
    2-7  Lending Regulations and specifically 12 C.F.R. Sec. 226.18(f)
    2-8  (1986), regarding variable rate disclosures shall be applicable as
    2-9  provided therein.  Any charges for insurance, service contracts, or
   2-10  warranties permitted by Article 7.06  may be disclosed in the
   2-11  manner described in Article 7.06;
   2-12        (d)  In the event of any inconsistency or conflict between
   2-13  the disclosure requirements of this Chapter and those of a federal
   2-14  law or regulation or an interpretation thereof, the requirements of
   2-15  the federal law, regulation, or interpretation shall control and
   2-16  the inconsistent or conflicting disclosures required by this
   2-17  Chapter need not be given.
   2-18        (e)  The above items need not be stated in the sequence or
   2-19  order set forth and additional information may be included.
   2-20        SECTION 2.  Section 7.03, Article 5069, Revised Civil
   2-21  Statutes, is amended by adding a new Subsection (8) to read as
   2-22  follows:
   2-23              (8)  Any holder who receives a check, draft, order, or
   2-24  like instrument which is returned unpaid for any reason may charge
   2-25  and collect from the buyer, or the maker or drawer, a returned
    3-1  check fee which shall not exceed Twenty-Five Dollars.
    3-2        SECTION 3.  The importance of this legislation and the
    3-3  crowded condition of the calendars in both houses create an
    3-4  emergency and an imperative public necessity that the
    3-5  constitutional rule requiring bills to be read on three several
    3-6  days in each house be suspended, and this rule is hereby suspended.