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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of a motor vehicle retail installment |
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contract to a holder. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.101, Finance Code, is amended by |
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adding Subsections (e), (f), and (g) to read as follows: |
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(e) A retail installment contract may not be conditioned on |
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the subsequent sale of the contract to a holder. A provision in |
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violation of this subsection is void. |
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(f) Subject to this subsection, a retail installment |
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contract shall provide that it is subject to rescission at the |
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election of the seller in the event that the seller is unable to |
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assign the contract to a holder because the buyer provided |
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materially false information in negotiating the contract. In order |
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to provide the basis for rescission under this subsection, |
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information provided by the buyer must have been materially false, |
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and: |
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(1) included on an application for credit; |
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(2) included on an odometer statement; or |
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(3) related to whether or not the manufacturer of the |
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vehicle had ever been required by state law to repurchase the |
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vehicle. |
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(g) All money paid by the buyer to the seller under the |
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rescinded contract shall be refunded in hand to the buyer before the |
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parties may execute a new retail installment contract for a |
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vehicle. |
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SECTION 2. This Act takes effect September 1, 2007. |