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A BILL TO BE ENTITLED
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AN ACT
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relating to certain charges included in a retail installment |
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agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 345.251(b) and (c), Finance Code, are |
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amended to read as follows: |
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(b) If a documentary fee is charged under this section the |
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fee: |
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(1) must be charged to cash buyers and credit buyers; |
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(2) may not exceed $100 [$50]; and |
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(3) must be disclosed on the retail installment |
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contract as a separate itemized charge. |
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(c) A preliminary work sheet on which a sale price is |
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computed and that is shown to the retail buyer, an order from the |
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buyer, or a retail installment contract must include in reasonable |
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proximity to the place on the document where the documentary fee is |
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disclosed: |
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(1) the amount of the fee; and |
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(2) the following notice in type that is bold-faced, |
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capitalized, or underlined or otherwise conspicuously set out from |
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the surrounding written material: |
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"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT |
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REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS |
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AND PERFORMING SERVICES RELATING TO THE CLOSING OF A SALE. A |
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DOCUMENTARY FEE MAY NOT EXCEED $100 [$50]. THIS NOTICE IS REQUIRED |
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BY LAW." |
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SECTION 2. Section 348.006(c), Finance Code, is amended to |
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read as follows: |
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(c) For a documentary fee to be included in the principal |
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balance of a retail installment contract: |
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(1) the retail seller must charge the documentary fee |
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to cash buyers and credit buyers; |
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(2) the documentary fee may not exceed $100 [$50] for a |
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motor vehicle retail installment contract or a reasonable amount |
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agreed to by the retail seller and retail buyer for a heavy |
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commercial vehicle retail installment contract; and |
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(3) the buyer's order and the retail installment |
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contract must include: |
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(A) a statement of the amount of the documentary |
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fee; and |
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(B) in reasonable proximity to the place in each |
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where the amount of the documentary fee is disclosed, the following |
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notice in type that is bold-faced, capitalized, underlined, or |
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otherwise conspicuously set out from surrounding written material: |
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"A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT |
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REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS |
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AND PERFORMING SERVICES RELATING TO THE CLOSING OF A SALE. A |
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DOCUMENTARY FEE MAY NOT EXCEED $100 [$50] FOR A MOTOR VEHICLE |
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CONTRACT OR A REASONABLE AMOUNT AGREED TO BY THE PARTIES FOR A HEAVY |
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COMMERCIAL VEHICLE CONTRACT. THIS NOTICE IS REQUIRED BY LAW." |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |