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my regular payment."
(ii) For use when the administrative fee is financed:
"The cash advance is $____. The annual rate of interest is _____%.
This interest rate may not be the same as the Annual Percentage Rate.
You figure the Finance Charge by applying the true daily earnings
method as defined by the Texas Finance Code to the unpaid portion
of the cash advance. You base the Finance Charge and Total of Payments
as if I will make each payment on the day it is due. You will apply
payments on the date they are received. This may result in a different
Finance Charge or Total of Payments. My final payment may be larger
or smaller than my regular payment."
(E) For contracts using the true daily earnings method,
Texas Finance Code, §342.201(e):
(i) For use when the interest charge is computed by
applying a daily rate to the brackets under Texas Finance Code, §342.201(e-1)(1),
and the administrative fee is paid in cash or is not included in the
cash advance on which interest is computed:
Attached Graphic
(ii) For use when the interest charge is computed by
applying a daily rate to the brackets under Texas Finance Code, §342.201(e-1)(1),
and the administrative fee is financed:
Attached Graphic
(iii) For use when the interest charge is computed
as a single equivalent daily rate under Texas Finance Code, §342.201(e-1)(2),
and the administrative fee is paid in cash or is not included in the
cash advance on which interest is computed: "The annual rate of interest
is _____%. The interest rate is computed by applying a single equivalent
daily rate under the Texas Finance Code. This interest rate may not
be the same as the Annual Percentage Rate. You figure the Finance
Charge by applying the true daily earnings method as defined by the
Texas Finance Code to the unpaid portion of the cash advance. You
base the Finance Charge and Total of Payments as if I will make each
payment on the day it is due. You will apply payments on the date
they are received. This may result in a different Finance Charge or
Total of Payments. My final payment may be larger or smaller than
my regular payment."
(iv) For use when the interest charge is computed as
a single equivalent daily rate under Texas Finance Code, §342.201(e-1)(2),
and the administrative fee is financed: "The cash advance is $____.
The annual rate of interest is _____%. The interest rate is computed
by applying a single equivalent daily rate under the Texas Finance
Code. This interest rate may not be the same as the Annual Percentage
Rate. You figure the Finance Charge by applying the true daily earnings
method as defined by the Texas Finance Code to the unpaid portion
of the cash advance. You base the Finance Charge and Total of Payments
as if I will make each payment on the day it is due. You will apply
payments on the date they are received. This may result in a different
Finance Charge or Total of Payments. My final payment may be larger
or smaller than my regular payment."
(8) Deferment clause. The deferment model clause reads:
(A) "If I ask for more time to make any payment and
you agree, I will pay more interest to extend the payment. The extra
interest will be figured under the Finance Commission rules."
(B) Optional language for unilateral deferment(s):
"You may extend one or more of my payments without my permission.
You have to wait six months to do it again."
(9) Fee for dishonored check clause. The model clause
specifies the maximum allowable dishonored check fee. A licensee may
always choose a lesser amount. The fee for dishonored check model
clause reads: "I agree to pay you a fee of up to $30 for a returned
check. You can add the fee to the amount I owe or collect it separately."
(10) Default clause. The model default clause reads:
"I will be in default if: I do not timely make a payment; I break
any promise I made in this agreement; I allow a judgment to be entered
against me or the collateral; I sell, lease, or dispose of the collateral;
I use the collateral for an illegal purpose; or you believe in good
faith that I am not going to keep any of my promises. If there is
more than one Borrower, each Borrower agrees to keep all of the promises
in the loan documents."
(11) Property insurance disclosure box. The model provision
for the disclosure of property insurance reads:
Attached Graphic
(12) Credit insurance disclosure box. The model provision
for the disclosure of credit insurance reads:
Attached Graphic
(13) Mailing of notices to borrower. The model agreement
regarding the mailing of notices to the borrower reads: "You can mail
any notice to me at my last address in your records. Your duty to
give me notice will be satisfied when you mail it."
(14) Statement of truthful information. The following
clause is sufficient as the borrower's agreement that the information
provided to the licensee is true: "I promise that all information
I gave you is true."
(15) Waiver of notice of intent to accelerate and waiver
of notice of acceleration clause. The waiver of notice of intent to
accelerate and waiver of notice of acceleration clause reads: "If
I am in default, you may require me to repay the entire unpaid principal
balance, and any accrued interest at once. You don't have to give
me notice that you are demanding or intend to demand immediate payment
of all that I owe."
(16) No waiver of lender's rights. The model agreement
regarding the lender's rights reads: "If you don't enforce your rights
every time, you can still enforce them later."
(17) Collection expenses clause. The model provision
relating to the collection of expenses if default occurs reads: "If
this debt is referred to an attorney for collection, I will pay any
attorney fees set by the court plus court costs."
(18) Joint liability clause. The model joint liability
clause reads: "I understand that you may seek payment from only me
without first looking to any other Borrower."
(19) Usury savings clause. The model usury savings
clause reads: "I don't have to pay interest or other amounts that
are more than the law allows."
(20) Savings clause. The model savings clause reads:
"If any part of this contract is declared invalid, the rest of the
contract remains valid."
(21) Final agreement and modifications in writing.
For loan agreements exceeding $50,000, this notice must be boldfaced,
capitalized, underlined, or otherwise set out from the surrounding
written material to be conspicuous. The model agreement requiring
any change to be in writing reads: "This written loan agreement is
the final agreement between you and me and may not be changed by prior,
current, or future oral agreements between you and me. There are no
oral agreements between you and me relating to this loan agreement.
Any change to this agreement must be in writing. Both you and I have
to sign written agreements."
(22) Security agreement clause. The model clause for
the security agreement reads: "If I am giving collateral for this
loan, I will see the separate security agreement for more information
and agreements."
(23) Application of law. The model agreement regarding
the law to be applied to the contract reads: "Federal law and Texas
law apply to this contract."
(24) OCCC notice. Under §90.105 of this title
(relating to OCCC Notice), the following required notice must be given
by licensees to let consumers know how to file complaints: "For questions
or complaints about this loan, contact (insert name of lender) at
(insert lender's phone number and, at lender's option, one or more
of the following: mailing address, fax number, website, e-mail address).
The lender is licensed and examined under Texas law by the Office
of Consumer Credit Commissioner (OCCC), a state agency. If a complaint
or question cannot be resolved by contacting the lender, consumers
can contact the OCCC to file a complaint or ask a general credit-related
question. OCCC address: 2601 N. Lamar Blvd., Austin, Texas 78705.
Phone: (800) 538-1579. Fax: (512) 936-7610. Website: occc.texas.gov.
E-mail: consumer.complaints@occc.texas.gov."
(25) Clause describing collateral. In the Truth in
Lending Act disclosure box, the model clause describing the collateral
reads: "You will have a security interest in the following described
collateral ________________."
(26) Clause relating to prepayment. In the Truth in
Lending Act disclosure box, the model clause options for prepayment
read:
(A) For contracts using the scheduled installment earnings
method: "Prepayment: If I pay off early, I may be entitled to a refund
of part of the Finance Charge and I will not have to pay a penalty."
(B) For contracts using the true daily earnings method:
"Prepayment: If I pay off early, I will not have to pay a penalty."
(27) Security agreement. If the loan is secured, a
separate security agreement should be used.
Cont'd... |
