| (C) The model clause regarding usury savings reads:
"I don't have to pay finance charge or other amounts that are more
than the law allows. This provision prevails over all other parts
of this contract and over all your other acts."
(41) Applicable law.
(A) General model clause. A model clause to establish
the law that will apply to the contract reads: "Federal law and Texas
law apply to this contract."
(B) Additional clause for commercial vehicles. Under
Texas Finance Code, §353.009(b), if a commercial vehicle retail
installment sales contract does not state that Texas Finance Code,
Chapter 353 applies, then the contract is subject to Texas Finance
Code, Chapter 348. In a commercial vehicle retail installment sales
contract, the creditor may include the following clause to specify
that Chapter 353 applies: "Chapter 353 of the Texas Finance Code applies
to this contract."
(42) Warranty disclaimer. The disclaimer of express
and implied warranties should be set out from the surrounding text
so that the disclosure is conspicuous. A disclaimer of express and
implied warranties, such as the following, is permitted by Texas Business
and Commerce Code, §2.316, and reads: "Unless the seller makes
a written warranty, or enters into a service contract within 90 days
from the date of this contract, the seller makes no warranties, express
or implied, on the motor vehicle, and there will be no implied warranties
of merchantability or of fitness for a particular purpose. This provision
does not affect any warranties covering the motor vehicle that the
motor vehicle manufacturer may provide."
(43) Preservation of consumer's claims and defenses
notice. This notice only applies if the motor vehicle financed in
the contract was purchased for personal, family, or household use.
The preservation of consumer's claims and defenses notice disclosure
should be set out from the surrounding text so that the disclosure
is in all capitals, boldfaced and in at least 10-point type. The preservation
of consumer's claims and defenses notice, as required by the Federal
Trade Commission's Holder in Due Course Rule, 16 C.F.R. §433.2,
reads: "NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT
TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE
SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS
HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS
PAID BY THE DEBTOR HEREUNDER. This provision applies to this contract
only if the motor vehicle financed in the contract was purchased for
personal, family, or household use."
(44) Used car buyer's guide. The used car buyer's guide
disclosure should be set out from the surrounding text so that the
disclosure is conspicuous. The disclosure should be prefaced by the
words "In this box only, the word "you" refers to the Buyer." The
used car buyer's guide disclosure, as required by the Federal Trade
Commission's Used Car Rule, 16 C.F.R. Part 455, reads:
(A) "Used Car Buyer's Guide. The information you see
on the window form for this vehicle is part of this contract. Information
on the window form overrides any contrary provisions in the contract
of sale."
(B) Spanish Translation: "Guía para compradors
de vehículos usados. La información que ve en el formulario
de la ventanilla para este vehículo forma parte del presente
contrato. La información del formulario de la ventanilla deja
sin efecto toda disposición en contrario contenida en el contrato
de venta."
(45) Negotiability and assignment. The disclosure of
the negotiability of the contract should be placed on the front side
of the contract and may read:
(A) "The Annual Percentage Rate may be negotiated with
the Seller. The Seller may assign this contract and retain its right
to receive a part of the Finance Charge";
(B) "The rates of this contract are negotiable. The
seller may assign or otherwise sell this contract and receive a discount
or other payment for the difference between the rate, charges, or
balance"; or
(C) "A customer may obtain their own financing. The
finance charge may be negotiable. The dealership may assign the retail
installment contract. There is no duty to disclose the terms for the
sale of this contract (for example, price paid to retail seller to
purchase retail installment contract)."
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| Source Note: The provisions of this §84.808 adopted to be effective July 10, 2008, 33 TexReg 5287; amended to be effective November 5, 2009, 34 TexReg 7610; amended to be effective November 5, 2015, 40 TexReg 7624; amended to be effective May 5, 2016, 41 TexReg 3120; amended to be effective September 7, 2017, 42 TexReg 4462 |
