By Marchant H.B. No. 1994
77R6323 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain charges included in a retail installment
1-3 agreement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 345.251(b) and (c), Finance Code, are
1-6 amended to read as follows:
1-7 (b) If a documentary fee is charged under this section the
1-8 fee:
1-9 (1) must be charged to cash buyers and credit buyers;
1-10 (2) may not exceed $75 [$50]; and
1-11 (3) must be disclosed on the retail installment
1-12 contract as a separate itemized charge.
1-13 (c) A preliminary work sheet on which a sale price is
1-14 computed and that is shown to the retail buyer, an order from the
1-15 buyer, or a retail installment contract must include in reasonable
1-16 proximity to the place on the document where the documentary fee is
1-17 disclosed:
1-18 (1) the amount of the fee; and
1-19 (2) the following notice in type that is bold-faced,
1-20 capitalized, or underlined or otherwise conspicuously set out from
1-21 the surrounding written material:
1-22 "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS
1-23 NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING
1-24 DOCUMENTS AND PERFORMING SERVICES RELATING TO THE CLOSING OF A
2-1 SALE. A DOCUMENTARY FEE MAY NOT EXCEED $75 [$50]. THIS NOTICE IS
2-2 REQUIRED BY LAW."
2-3 SECTION 2. Section 348.006(c), Finance Code, is amended to
2-4 read as follows:
2-5 (c) For a documentary fee to be included in the principal
2-6 balance of a retail installment contract:
2-7 (1) the retail seller must charge the documentary fee
2-8 to cash buyers and credit buyers;
2-9 (2) the documentary fee may not exceed $75 [$50] for a
2-10 motor vehicle retail installment contract or a reasonable amount
2-11 agreed to by the retail seller and retail buyer for a heavy
2-12 commercial vehicle retail installment contract; and
2-13 (3) the buyer's order and the retail installment
2-14 contract must include:
2-15 (A) a statement of the amount of the documentary
2-16 fee; and
2-17 (B) in reasonable proximity to the place in each
2-18 where the amount of the documentary fee is disclosed, the following
2-19 notice in type that is bold-faced, capitalized, underlined, or
2-20 otherwise conspicuously set out from surrounding written material:
2-21 "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS
2-22 NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING
2-23 DOCUMENTS AND PERFORMING SERVICES RELATING TO THE CLOSING OF A
2-24 SALE. A DOCUMENTARY FEE MAY NOT EXCEED $75 [$50] FOR A MOTOR
2-25 VEHICLE CONTRACT OR A REASONABLE AMOUNT AGREED TO BY THE PARTIES
2-26 FOR A HEAVY COMMERCIAL VEHICLE CONTRACT. THIS NOTICE IS REQUIRED
2-27 BY LAW."
3-1 SECTION 3. This Act takes effect immediately if it receives
3-2 a vote of two-thirds of all the members elected to each house, as
3-3 provided by Section 39, Article III, Texas Constitution. If this
3-4 Act does not receive the vote necessary for immediate effect, this
3-5 Act takes effect September 1, 2001.