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