75R11748 BEM-F
By Coleman H.B. No. 2924
Substitute the following for H.B. No. 2924:
By Ehrhardt C.S.H.B. No. 2924
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the refinancing of certain motor vehicle retail
1-3 installment contracts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section (9)(b), Article 7.02, Title 79, Revised
1-6 Statutes (Article 5069-7.02, Vernon's Texas Civil Statutes), is
1-7 amended to read as follows:
1-8 (b) Section (9)(a) of this Article does not apply to:
1-9 (i) a lease;
1-10 (ii) a retail installment transaction for a vehicle to
1-11 be used primarily for purposes other than personal, family, or
1-12 household use;
1-13 (iii) a transaction for which the payment schedule is
1-14 adjusted to the seasonal or irregular income or scheduled payments
1-15 or obligations of the buyer; [or]
1-16 (iv) a transaction of a kind determined by the
1-17 Commissioner as not requiring the protection of the buyer provided
1-18 in Section (9)(a) of this Article; or
1-19 (v) a retail installment transaction for the sale of a
1-20 vehicle in which the buyer is entitled, at the end of the term of
1-21 the retail installment contract, to choose any one of the
1-22 following:
1-23 (A) to sell the vehicle back to the seller
1-24 according to a written agreement entered into between the buyer and
2-1 seller concurrently with or as a part of the transaction and under
2-2 which the buyer will be released from liability or obligation for
2-3 the final scheduled payment under the contract on compliance with
2-4 the agreement;
2-5 (B) to pay the final scheduled payment under the
2-6 contract; or
2-7 (C) if the buyer is not in default under the
2-8 contract, to refinance the final scheduled payment with the seller
2-9 for repayment in not less than 24 equal monthly installment
2-10 payments and at a time price differential not to exceed the lesser
2-11 of:
2-12 (1) the maximum amount authorized under
2-13 Article 7.03 of this Title; or
2-14 (2) five percent more than the amount of
2-15 time price differential of the original contract.
2-16 SECTION 2. This Act takes effect September 1, 1997, and
2-17 applies only to a contract entered into on or after that date. A
2-18 contract entered into before the effective date of this Act is
2-19 governed by the law in effect at the time the contract was entered
2-20 into, and that law is continued in effect for that purpose.
2-21 SECTION 3. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended.