By: Carona S.B. No. 566
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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. Subsections (b)and (c), Section 345.251, Finance
1-6 Code, are 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
1-23 DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
2-1 BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATING TO
2-2 THE CLOSING OF A SALE. A DOCUMENTARY FEE MAY NOT EXCEED $75 [$50].
2-3 THIS NOTICE IS REQUIRED BY LAW."
2-4 SECTION 2. This Act takes effect immediately if it receives a
2-5 vote of two-thirds of all the members elected to each house, as
2-6 provided by Section 39, Article III, Texas Constitution. If this
2-7 Act does not receive the vote necessary for immediate effect, this
2-8 Act takes effect September 1, 2001.