| 1 | 1 | | 81R1979 KFF-F |
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| 2 | 2 | | By: Solomons H.B. No. 2556 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the transfer of a motor vehicle retail installment |
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| 8 | 8 | | contract to a holder and to certain contracts made in contemplation |
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| 9 | 9 | | of a motor vehicle retail installment contract. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 348, Finance Code, is |
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| 12 | 12 | | amended by adding Section 348.013 to read as follows: |
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| 13 | 13 | | Sec. 348.013. CONDITIONAL DELIVERY AGREEMENT. (a) This |
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| 14 | 14 | | section applies only to a contract between a retail seller and |
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| 15 | 15 | | prospective retail buyer under the terms of which: |
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| 16 | 16 | | (1) no legal or equitable rights of ownership to |
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| 17 | 17 | | property are conferred; and |
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| 18 | 18 | | (2) the retail seller allows the prospective retail |
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| 19 | 19 | | buyer the use and benefit of a motor vehicle for a specified term. |
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| 20 | 20 | | (b) A contract to which this section applies may not exceed |
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| 21 | 21 | | a term of 15 days. |
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| 22 | 22 | | (c) The retail seller shall refund or return any |
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| 23 | 23 | | consideration, including any payments and trade-in motor vehicle, |
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| 24 | 24 | | made by the prospective retail buyer under a contract to which this |
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| 25 | 25 | | section applies if, not later than the seventh day after the |
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| 26 | 26 | | termination date of that contract, the retail seller and |
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| 27 | 27 | | prospective retail buyer do not subsequently enter into a retail |
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| 28 | 28 | | installment contract. |
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| 29 | 29 | | (d) This section does not create a private right of action. |
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| 30 | 30 | | (e) The commissioner has exclusive jurisdiction to enforce |
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| 31 | 31 | | this section. |
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| 32 | 32 | | SECTION 2. Section 348.101, Finance Code, is amended by |
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| 33 | 33 | | adding Subsection (e) to read as follows: |
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| 34 | 34 | | (e) A retail installment contract may not be conditioned on |
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| 35 | 35 | | the subsequent sale of the contract to a holder. A provision in |
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| 36 | 36 | | violation of this subsection is void. This subsection does not |
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| 37 | 37 | | create a private right of action. The commissioner has exclusive |
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| 38 | 38 | | jurisdiction to enforce this subsection. |
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| 39 | 39 | | SECTION 3. The changes in law made by this Act apply only to |
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| 40 | 40 | | a contract entered into on or after the effective date of this Act. |
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| 41 | 41 | | A contract entered into before the effective date of this Act is |
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| 42 | 42 | | governed by the law in effect when the contract was entered into, |
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| 43 | 43 | | and the former law is continued in effect for that purpose. |
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| 44 | 44 | | SECTION 4. This Act takes effect September 1, 2009. |
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