A Chapter 342, Subchapter F contract may include, but is not
limited to, the following contract provisions to the extent not prohibited
by law or regulation. If the licensee desires to exercise its rights
under one of the following provisions, it must include the provision
in the contract. A licensee who does not desire to apply a provision
is not required to include it in the contract. For example, if a licensee
does not take a security interest in the borrower's personal property,
the provisions addressing security interests are not required. A Chapter
342, Subchapter F contract may contain the following provisions.
(1) Identification of the parties, including the name
and address of each party;
(2) A Truth in Lending Act disclosure box;
(3) A definitions section specifying the pronouns that
designate the borrower and the lender;
(4) A promise to pay;
(5) A late charge provision;
(6) A provision for after maturity interest;
(7) A provision specifying that prepayment is permitted;
(8) A provision specifying the finance charge earnings
and refund method;
(9) A provision authorizing deferments;
(10) A provision specifying the conditions causing
default;
(11) A waiver of notice of intent to accelerate and
waiver of notice of acceleration;
(12) A provision contracting for a fee for a dishonored
check;
(13) A signature block;
(14) A security agreement including provisions addressing:
(A) a statement that the collateral is free from encumbrances;
(B) the location and restrictions on movement or transfer
of the collateral; and
(C) a statement that the borrower will appropriately
maintain and use the collateral;
(15) A provision regarding the mailing of notices to
the borrower;
(16) Statement of truthful information;
(17) A provision expressing no waiver of the lender's
rights;
(18) A clause stating that all modifications to the
contract must be in writing;
(19) A provision stating Texas law and federal law
will apply to the contract;
(20) A clause providing for joint liability;
(21) A usury savings clause;
(22) A credit reporting clause;
(23) OCCC notice;
(24) An arbitration agreement; and
(25) A savings clause stating that if any part of the
contract is invalid, all other parts remain valid.
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| Source Note: The provisions of this §90.302 adopted to be effective August 31, 2006, 31 TexReg 6676; amended to be effective September 9, 2010, 35 TexReg 8104; amended to be effective November 5, 2015, 40 TexReg 7635; amended to be effective July 9, 2020, 45 TexReg 4501 |
