| (a) Applicability. The recordkeeping requirements of
this section apply to retail sellers that service or collect installments
on retail installment sales contracts involving ordinary vehicles.
The recordkeeping requirements of this section do not apply to motor
vehicle retail installment sales transactions involving commercial
vehicles.
(b) Records required for each retail installment sales
transaction. Each licensee must maintain records with respect to the
licensee's compliance with Texas Finance Code, Chapter 348 for each
motor vehicle retail installment sales contract made, acquired, serviced,
or held under Chapter 348 and make those records available for examination.
This requirement includes any conditional delivery agreement or retail
installment sales contract signed by a retail buyer for a vehicle
that has been delivered, including contracts that are subsequently
voided or canceled after a seller regains possession and ownership
of the vehicle.
(c) Recordkeeping systems. The records required by
this section may be maintained by using either a legible paper or
manual recordkeeping system, electronic recordkeeping system, optically
imaged recordkeeping system, or a combination of the preceding types
of systems, unless otherwise specified by statute or regulation. Licensees
may maintain records on one or more recordkeeping systems, so long
as the licensee is able to integrate records pertaining to an account
into one or more reports as required by this section. If federal law
requirements for record retention are different from the provisions
contained in this section, the federal law requirements prevail only
to the extent of the conflict with the provisions of this section.
(d) Record search requirements.
(1) Open retail installment sales transactions. A licensee
must be able to access or produce a list of all open retail installment
sales transactions. If the list of open transactions is accessed through
an electronic system, the licensee must be able to generate a separate
report of open transactions. Alternatively, a licensee may provide
a list containing open and closed retail installment sales transactions
as long as the open transactions are designated as "open."
(2) Alphabetical search. A licensee must be able to
access records in alphabetical order by retail buyer name for open
and closed transactions during the record retention period required
by subsection (e)(9) of this section. A licensee may comply with the
alphabetical requirement by providing the commissioner's representative
files by retail buyer name upon request by the commissioner's representative.
(e) Records required.
(1) Retail installment sales transaction report.
(A) General requirements. Each licensee must maintain
records sufficient to produce a retail installment sales transaction
report that contains a listing of each Texas Finance Code, Chapter
348 retail installment sales contract made or acquired by the licensee.
The report is only required to include those retail installment sales
contracts that are subject to the record retention period of paragraph
(10) of this subsection.
(B) Recordkeeping systems. The retail installment sales
transaction report can be maintained either as a paper record or may
be generated from an electronic system or systems so long as the licensee
can integrate the following information into a report. If the retail
installment sales transaction report is maintained under a manual
recordkeeping system, the retail installment sales transaction report
must be updated within a reasonable time from the date the contract
is made or acquired.
(C) Dealer's Motor Vehicle Inventory Tax Statement
option.
(i) A licensee may utilize a copy of the Dealer's Motor
Vehicle Inventory Tax Statement (VIT Statement) submitted to the Texas
Comptroller of Public Accounts to satisfy the requirements of this
paragraph if the following two conditions are met when the VIT Statement
is provided to the commissioner's representative:
(I) on a copy of the submitted VIT Statement, the licensee
identifies (e.g., highlights, marks with abbreviations) which transactions
were cash transactions and which were retail installment sales transactions;
and
(II) the licensee supplements the VIT Statement with
the identification of all transactions in which VIT was not charged
or collected.
(ii) A licensee who assigns account numbers and utilizes
the Dealer's Motor Vehicle Inventory Tax Statement option must provide
the account numbers for all retail installment sales transactions
contained in the VIT Statement.
(D) Required information. A retail installment sales
transaction report must contain the following information:
(i) the date of contract or date of sale (day, month,
and year);
(ii) the retail buyer's name(s);
(iii) a method of identifying the vehicle, such as
the last six digits of the vehicle identification number or the stock
number; and
(iv) the account number.
(2) Retail installment sales transaction file. A licensee
must maintain a paper or imaged copy of a retail installment sales
transaction file for each individual retail installment sales contract
or be able to produce the same information within a reasonable amount
of time. The retail installment sales transaction file must contain
documents which show the licensee's compliance with applicable law.
The required documents must show the licensee's compliance with Texas
Finance Code, Chapter 348 and would accordingly include applicable
state and federal laws and regulations, including the Truth in Lending
Act. If a substantially equivalent electronic record for any of the
following records exists, a paper copy of the record does not have
to be included in the retail installment sales transaction file if
the electronic record can be accessed upon request. The retail installment
sales transaction file must include copies of the following records
or documents, unless otherwise specified:
(A) for all retail installment sales transactions:
(i) the retail installment sales contract signed by
the retail buyer and the retail seller as required by Texas Finance
Code, §348.101;
(ii) if prepared by the retail seller, the purchase
or buyer's order reflecting a written computation of the cash price
of the vehicle and itemized charges, a description of the motor vehicle
being purchased, and a description of each motor vehicle being traded
in;
(iii) the credit application and any other written
or recorded information used in evaluating the application;
(iv) the original certificate of title to the vehicle,
a certified copy of the negotiable certificate of title, or a copy
of the front and back of either the original or certified copy of
the title;
(v) the Texas Department of Motor Vehicles' Title Application
Receipt (Form VTR-500-RTS) or similar document evidencing the disbursement
of the sales tax, and fees for license, title, and registration of
the vehicle;
(vi) copies of other agreements or disclosures signed
by the retail buyer applicable to the retail installment sales transaction;
and
(vii) any records applicable to the retail installment
transaction outlined by subparagraphs (B) - (U) of this paragraph.
(B) for a vehicle titled in Texas, a copy of the completed
Texas Department of Motor Vehicles'/Texas Comptroller of Public Accounts'
Application for Texas Certificate of Title (Form 130-U) signed by
the retail buyer and seller that was filed with the appropriate county
tax assessor-collector.
(C) for a vehicle titled outside of Texas, a copy of
the application for certificate of title for the buyer or the properly
assigned evidence of ownership to the buyer including the Texas Comptroller
of Public Accounts' Texas Motor Vehicle Sales Tax Exemption Certificate
(Form 14-312).
(D) for a retail installment sales transaction in which
a power of attorney is necessary to transfer title to the buyer, a
copy of the Texas Department of Motor Vehicles' Power of Attorney
to Transfer a Motor Vehicle (Form VTR-271) or any other similar document
used as a power of attorney.
(E) for a retail installment sales transaction involving
a downpayment, a copy of any record or document relating to the downpayment
including:
(i) receipts for cash downpayments;
(ii) promissory notes or other documents evidencing
the retail buyer's agreement to pay the cash downpayment over time;
(iii) documents or forms signed by the retail buyer
relating to a manufacturer's or distributor's rebate as permitted
by Texas Finance Code, §348.404(a); and
Cont'd... |
