By: Nelson S.B. No. 955
A BILL TO BE ENTITLED
AN ACT
1-1 relating to retail installment contracts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 7.02, Article 5069, Revised Civil
1-4 Statutes, is amended by amending Subsection (6) to read as follows:
1-5 (6) The retail installment contract shall specifically set out the
1-6 following items:
1-7 (a) The cash price as defined in Article 7.01;
1-8 (b) The amount of the buyer's down payment, if any,
1-9 specifying the amounts paid in money and in goods traded in;
1-10 (c) Any itemized charges, as defined in Article 7.01.
1-11 However, if the contract provides for either a fixed contract rate
1-12 or a variable contract rate, <as an alternative to the time price
1-13 differential as authorized by Section (7), Article 7.03>, the
1-14 contract shall (i) in the case of a fixed contract rate set forth
1-15 the contract rate, (ii) in the case of a variable contract rate
1-16 set forth <set out> the method by which that rate is computed, and
1-17 <the contract for heavy commercial vehicles is not required to set
1-18 out> (iii) in either case set forth the total amount of the time
1-19 price differential(.) ; provided, however, that for the purpose of
1-20 disclosure on the contract date, the total amount of time price
1-21 differential may be calculated using (a) in the case of a variable
1-22 contract rate, an assumed contract rate equal to the contract rate
1-23 in effect on the date of the contract even though the actual
2-1 contract rate may increase or decrease during the term of such
2-2 contract, and (b) the assumption that each installment payment will
2-3 be received on its due date. Notwithstanding the foregoing, and
2-4 except with respect to any contract for heavy commercial vehicles,
2-5 the disclosure requirements of Regulation Z of the federal Truth in
2-6 Lending Regulations and specifically 12 C.F.R. Sec. 226.18(f)
2-7 (1986), regarding variable rate disclosures shall be applicable as
2-8 provided therein. Any charges for insurance, service contracts, or
2-9 warranties permitted by Article 7.06 may be disclosed in the
2-10 manner described in Article 7.06;
2-11 (d) In the event of any inconsistency or conflict between
2-12 the disclosure requirements of this Chapter and those of a federal
2-13 law or regulation or an interpretation thereof, the requirements of
2-14 the federal law, regulation, or interpretation shall control and
2-15 the inconsistent or conflicting disclosures required by this
2-16 Chapter need not be given.
2-17 (e) The above items need not be stated in the sequence or
2-18 order set forth and additional information may be included.
2-19 SECTION 2. Section 7.03, Article 5069, Revised Civil
2-20 Statutes, is amended by adding a new Subsection (8) to read as
2-21 follows:
2-22 (8) Any holder who receives a check, draft, order, or
2-23 like instrument which is returned unpaid for any reason may charge
2-24 and collect from the buyer, or the maker or drawer, a returned
2-25 check fee which shall not exceed Twenty-Five Dollars.
3-1 SECTION 3. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended.