| (A) The model clause stating the secured nature of
the agreement reads: "To secure this loan, I give you a security interest
in the collateral. The collateral includes the property listed below,
improvements and attachments to the property, insurance refunds, and
proceeds."
(B) Prohibition on transfer and collateral free of
encumbrance. The model agreement keeping the collateral free from
encumbrance and against transferring it reads: "I own the collateral.
I won't sell or transfer it without your written permission. I won't
allow anyone else to have an interest in the collateral except you."
(C) Location and restrictions on movement or relocation
of collateral. The model agreement regarding the location of the collateral
reads: "I will keep the collateral at my address shown above. I will
promptly tell you in writing if I change my address. I won't permanently
remove the collateral from Texas unless you give me written permission."
(D) Upkeep and use of collateral. The model agreement
regarding the upkeep and use of the collateral reads: "I will timely
pay all taxes and license fees on the collateral. I will keep it in
good repair. I won't use the collateral illegally."
(E) Modifications in writing. The model agreement regarding
changes made to the security agreement reads: "Any change to this
security agreement has to be in writing. Both you and I have to sign
it."
(F) Any default is a default of the security agreement.
The model agreement in the security agreement regarding defaults reads:
"Any default under my agreements with you will be a default of this
security agreement."
(G) Default clause. The model clause setting out the
security agreement in case of default reads: "If there is a default,
you can take the collateral. You will only do this lawfully and without
a breach of the peace. If you take my collateral, you will tell me
how much I have to pay to get it back. If I don't pay you to get the
collateral back, you can sell it or take other action allowed by law.
You will send me notice at least 10 days before you sell it. My right
to get the collateral back ends when you sell it. You can use the
money you get from selling it to pay amounts the law allows and to
reduce the amount I owe. If any money is left, you will pay it to
me. If the money from the sale is not enough to pay all I owe, I must
pay the rest of what I owe you plus interest."
(28) Credit reporting. The Fair Credit Reporting Act,
15 U.S.C. §1681s-2(a)(7), generally requires a creditor to provide
a notice to a consumer before furnishing negative information to a
credit bureau. The model clause for credit reporting reads: "You may
report information about my account to credit bureaus. Late payments,
missed payments, or other defaults on my account may be reflected
in my credit report."
|
| Source Note: The provisions of this §90.203 adopted to be effective August 31, 2006, 31 TexReg 6673; amended to be effective September 9, 2010, 35 TexReg 8104; amended to be effective November 5, 2015, 40 TexReg 7635; amended to be effective March 8, 2018, 43 TexReg 1260; amended to be effective November 7, 2019, 44 TexReg 6530; amended to be effective July 9, 2020, 45 TexReg 4501 |
