SECTION 90.304. Model Contracts; Permissible Changes

(a) A licensee may consider making the following types of changes to the signature loans plain language model clauses:

(1) Adding information related to information set forth in the model clauses that is not otherwise prohibited by law;

(2) Substituting another term for "Lender" or "Borrower" that has the same meaning, or using pronouns such as "you," "we," and "us";

(3) Presenting model clauses in any order, and combining or further segregating the model clauses;

(4) Inserting descriptive headings or number provisions;

(5) Changing the case of a word if otherwise permitted by the Texas Finance Code; or

(6) Making other changes that do not affect the substance of the disclosures.

(7) A sample model contract using the add-on method is presented in the following example:

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(8) A sample model contract using the scheduled installment earnings method is presented in the following example:

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(9) A sample model contract using the true daily earnings method is presented in the following example:

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(10) A sample model security agreement is presented in the following example.

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(b) A licensee has considerable flexibility to arrange the format of the model form if the revised format does not significantly adversely affect the substance, clarity, or meaningful sequence of the disclosures.

Source Note: The provisions of this §90.304 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