|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to certain charges included in a motor vehicle installment |
|
agreement. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 348.006, Finance Code is amended to read |
|
as follows: |
|
Sec. 348.006. PRINCIPAL BALANCE; INCLUSION OF DOCUMENTARY |
|
FEE. (a) The principal balance under a retail installment contract |
|
is computed by: |
|
(1) adding: |
|
(A) the cash price of the motor vehicle; |
|
(B) each amount included in the retail |
|
installment contract for an itemized charge; and |
|
(C) subject to Subsection (c), a documentary fee |
|
for services rendered for or on behalf of the retail buyer in |
|
[preparing,] handling[,] and processing documents relating to the |
|
motor vehicle sale [and to the closing of the retail installment
|
|
transaction]; and |
|
(2) subtracting from the results under Subdivision (1) |
|
the amount of the retail buyer's down payment in money, goods, or |
|
both. |
|
(b) The computation of the principal balance may include an |
|
amount authorized under Section 348.404(b). |
|
(c) For a documentary fee to be included in the principal |
|
balance of a retail installment contract: |
|
(1) the retail seller must charge the documentary fee |
|
to cash buyers and credit buyers; |
|
(2) the documentary fee may not exceed [$50 for a motor
|
|
vehicle retail installment contract or] a reasonable amount for the |
|
documentary services agreed to by the retail seller and retail |
|
buyer [for a heavy commercial vehicle retail installment contract]; |
|
and |
|
(3) the buyer's order and the retail installment |
|
contract must include: |
|
(A) a statement of the amount of the documentary |
|
fee; and |
|
(B) in reasonable proximity to the place in each |
|
where the amount of the documentary fee is disclosed, the following |
|
notice in type that is bold-faced, capitalized, underlined, or |
|
otherwise conspicuously set out from surrounding written material: |
|
"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE |
|
IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING |
|
DOCUMENTS [AND PERFORMING SERVICES] RELATING TO THE [CLOSING OF A] |
|
SALE. A DOCUMENTARY FEE MAY NOT EXCEED [$50 FOR A MOTOR VEHICLE
|
|
CONTRACT OR] A REASONABLE AMOUNT AGREED TO BY THE PARTIES [FOR A
|
|
HEAVY COMMERCIAL VEHICLE CONTRACT]. THIS NOTICE IS REQUIRED BY |
|
LAW." |
|
(d) A retail seller shall post the documentary fee notice |
|
prescribed in Subsection (c) so that it is clearly visible in each |
|
place where a vehicle sale is finalized. If the language primarily |
|
used in an oral sales presentation is not the same as the language |
|
in which the retail installment contract is written, the retail |
|
seller shall furnish to the retail buyer a written statement |
|
containing the notice set out in Subsection (c)(3)(B) in the |
|
language primarily used in the oral sales presentation. |
|
(e) The commissioner may review the amount of a documentary |
|
fee for reasonableness. If the commissioner determines that a |
|
documentary fee charged is not reasonable, then the commissioner |
|
may require that the documentary fee charged be reduced or |
|
suspended. |
|
(f) The Finance Commission may adopt rules, including rules |
|
relating to the standards for a reasonableness determination or |
|
disclosures, to enforce this section. |
|
SECTION 2. This Act takes effect September 1, 2009. |