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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 and to certain contracts made in contemplation |
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of a motor vehicle retail installment contract. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 348, Finance Code, is |
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amended by adding Section 348.013 to read as follows: |
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Sec. 348.013. CONDITIONAL DELIVERY AGREEMENT. (a) This |
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section applies only to a contract between a retail seller and |
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prospective retail buyer under the terms of which: |
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(1) no legal or equitable rights of ownership to |
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property are conferred; and |
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(2) the retail seller allows the prospective retail |
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buyer the use and benefit of a motor vehicle for a specified term. |
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(b) A contract to which this section applies may not exceed |
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a term of 15 days. |
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(c) The retail seller shall refund or return any |
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consideration, including any payments and trade-in motor vehicle, |
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made by the prospective retail buyer under a contract to which this |
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section applies if, not later than the seventh day after the |
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termination date of that contract, the retail seller and |
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prospective retail buyer do not subsequently enter into a retail |
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installment contract. |
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(d) This section does not create a private right of action. |
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(e) The commissioner has exclusive jurisdiction to enforce |
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this section. |
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SECTION 2. Section 348.101, Finance Code, is amended by |
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adding Subsection (e) 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. This subsection does not |
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create a private right of action. The commissioner has exclusive |
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jurisdiction to enforce this subsection. |
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SECTION 3. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before the effective date of this Act is |
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governed by the law in effect when the contract was entered into, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |