| (a) If an automobile club membership is offered in
connection with a loan under Texas Finance Code, Chapter 342, Subchapter
E, the disclosure contained in subsection (c) of this section is sufficient
to satisfy the requirements of Texas Finance Code, §342.457 if
printed in a size equal to at least 10-point type that is boldfaced,
capitalized, underlined, or otherwise set out from surrounding written
material so as to be conspicuous.
(b) The text of the disclosure must be set in an easily
readable typeface. Typefaces considered to be easily readable include
Times, Scala, Caslon, Century Schoolbook, Helvetica, Arial, and Garamond.
(c) The lender must provide this disclosure in both
English and Spanish to all borrowers who are offered an automobile
club membership in connection with their loans. The automobile club
membership disclosure must read as follows:
(1) "I AM NOT REQUIRED TO PURCHASE THIS AUTOMOBILE
CLUB MEMBERSHIP AS A CONDITION FOR APPROVAL OF THIS LOAN. I CAN CANCEL
THIS MEMBERSHIP WITHIN 31 DAYS AND RECEIVE A FULL REFUND OF THE PURCHASE
PRICE."
(2) Spanish Translation: "NO SE REQUIERE QUE COMPRE
ESTA MEMBRESÍA DE CLUB AUTOMOTRIZ COMO CONDICIÓN PARA
LA APROBACIÓN DE ESTE PRÉSTAMO. PUEDO CANCELAR ESTA
MEMBRESÍA DENTRO DE 31 DÍAS Y RECIBIR UN REEMBOLSO TOTAL
DEL PRECIO DE COMPRA."
(d) The disclosure contained in subsection (c) of this
section may be located in one of the following:
(1) the enrollment agreement;
(2) the loan contract; or
(3) a separate document.
(e) Evidence of the borrower's intent to purchase an
automobile club membership must be acknowledged in writing by the
borrower's signature or initials on the document containing the disclosure.
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| Source Note: The provisions of this §83.837 adopted to be effective November 9, 2006, 31 TexReg 9006; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 5142 |
