SECTION 90.202. Contract Provisions

A Chapter 342, Subchapter E 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 licensee may also exclude non-relevant portions of a model clause. For example, a licensee who does not routinely finance certain insurance coverages may omit those non-applicable portions of the model clause. A Chapter 342, Subchapter E 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) An itemization of amount financed box;

(4) A definitions section specifying the pronouns that designate the borrower and the lender;

(5) A promise to pay;

(6) A late charge provision;

(7) A provision for after maturity interest;

(8) A provision specifying that prepayment is permitted;

(9) A provision specifying the finance charge earnings and refund method;

(10) A provision authorizing deferments;

(11) A provision contracting for a fee for a dishonored check;

(12) A provision specifying the conditions causing default;

(13) A provision regarding property insurance;

(14) A provision regarding credit insurance;

(15) A provision regarding the mailing of notices to the borrower;

(16) Statement of truthful information;

(17) A waiver of notice of intent to accelerate and waiver of notice of acceleration;

(18) A provision expressing no waiver of the lender's rights;

(19) A collection expenses clause;

(20) A clause providing for joint liability;

(21) A usury savings clause;

(22) A credit reporting clause;

(23) A savings clause stating that if any part of the contract is invalid, the rest of the contract remains valid; and

(24) OCCC notice.

Source Note: The provisions of this §90.202 adopted to be effective August 31, 2006, 31 TexReg 6673; 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