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