| (a) Purpose. The purpose of this section is to clarify
and establish requirements related to the written disclosure a wrap
lender is required to provide the wrap borrower in accordance with
Finance Code §159.101 (disclosure).
(b) Model Disclosure Form. In accordance with Finance
Code §159.101(c), the following form (Figure: 7 TAC §78.101(b)(3);
model disclosure form) is deemed to satisfy the substantive requirements
of Finance Code §159.101(a). Interested persons should visit
the Department's website (sml.texas.gov) for a form-fillable version
of the model disclosure form and an editable version in Word format
(including for purposes of attaching additional sheets to supplement
the form with additional information, as necessary). A wrap lender
may modify and customize the model disclosure form; provided, the
form:
(1) contains all substantive information contained
in the model disclosure form that is applicable to the person issuing
the disclosure;
(2) conforms to the formatting requirements of subsection
(c) of this section; and
(3) otherwise fulfills the requirements of Finance
Code §159.101(a).
Attached Graphic
(c) Formatting Requirements. The disclosure must be
made in 12-point font using an easily readable typeface. A font point
generally equates to 1/72 of an inch. Those portions of the disclosure
comprising the body must use a normal font type. Those portions of
the disclosure comprising a heading must use a bolded font type. Those
portions of the disclosure comprising the content required by Finance
Code §159.101(a)(2) and Texas Property Code §5.016(a)(7)
must use an "all caps" or "small caps" font type. The following typefaces
are deemed to be easily readable for purposes of this section (this
list is not exhaustive and other typefaces may be used; provided,
the typeface is easily readable):
(1) Arial;
(2) Calibri;
(3) Century Schoolbook;
(4) Garamond;
(5) Georgia;
(6) Lucida Sans;
(7) Times New Roman;
(8) Trebuchet; and
(9) Verdana.
(d) Effective Date. The disclosure is deemed to be
provided by the wrap lender and received by the wrap borrower for
purposes of Finance Code §159.101 on the date the disclosure
is dated and signed by the wrap borrower, as provided by Finance Code §159.101(b).
(e) Foreign Language Requirement. The wrap borrower
must be provided an English-language version of the disclosure in
addition to and contemporaneously with the foreign-language version
required by Finance Code §159.102, if applicable. A wrap lender
may provide the English-language and foreign-language disclosure in
a single, combined disclosure. A wrap borrower receiving a foreign-language
version of the disclosure may, but is not required to, date and sign
the foreign-language disclosure. A wrap borrower receiving a foreign-language
version of the disclosure must date and sign the English-language
version of the disclosure, which determines the effective date the
disclosure is received by the wrap borrower, as provided by subsection
(d) of this section. A Spanish-language version of the model disclosure
form is available on the Department's website (sml.texas.gov) and
is deemed to satisfy the substantive requirements of Finance Code §159.101(a)
and §159.102, with respect to negotiations with a wrap borrower
conducted primarily in Spanish.
(f) Electronic Delivery and Signature. The wrap lender
may provide, and the wrap borrower may sign, the disclosure electronically
in accordance with state and federal law governing electronic signatures
and delivery of electronic documents. The UETA and E-Sign Act include
requirements for electronic signatures and delivery.
(g) Computation of Time. Computation of the time period
for a wrap lender to provide the disclosure required by Finance Code §159.101(a)
is made using calendar days, irrespective of any Saturdays, Sundays,
or legal holidays.
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