SECTION 90.703. Form of Disclosure

(a) For a loan under Chapter 342, Subchapters E, F, or G, if the licensee negotiates a term described by §90.702(a) of this title (relating to Negotiation in Spanish), then the licensee must deliver a Spanish disclosure described by this subsection to the debtor. The disclosure must be completed with amounts that are accurate within the tolerances described by Regulation Z, 12 C.F.R. Part 1026.

(1) For loans negotiated in Spanish that are subject to Chapter 342, Subchapter E, the licensee must provide, no later than the consummation of the loan:

(A) a Spanish translation of the loan contract that includes the disclosure form under Regulation Z, 12 C.F.R. §1026.18; or

(B) a copy of the "Notificación de Crédito Al Consumidor (Préstamo a Plazos)" as prescribed in the following figure:

Attached Graphic

(2) For loans negotiated in Spanish that are subject to Chapter 342, Subchapter F, the licensee must provide, no later than consummation of the loan:

(A) a Spanish translation of the loan contract that includes the disclosure form under Regulation Z, 12 C.F.R. §1026.18; or

(B) copies of both the "Notificación de Crédito Al Consumidor (Préstamo)," and the "Conceptos Financieros."

(i) The "Notificación de Crédito Al Consumidor (Préstamo)," for which the lender should select an appropriate late charge option, is presented in the following figure:

Attached Graphic

(I) Late Charge Option 1: "Late Charge: If I don't pay an entire payment within 10 days after it is due, you can charge me a late charge. The late charge will be 5% of the scheduled payment."

(II) Late Charge Option 1 Spanish Translation: "Cargos por Retrasos: Si no doy un pago completo dentro de 10 días después de vencerse, me puedes cobrar un cargo por retraso. El cargo por retraso será el 5% de la cantidad del pago."

(III) Late Charge Option 2: "Late Charge: For a loan that has an amount financed of less than $100, the late charge for a payment that is unpaid for 10 days after it is due is 5% of the amount of the installment. For a loan that has an amount financed of $100 or more, the late charge for a payment that is unpaid for 10 days after it is due is the greater of $10 or 5% of the amount of the installment."

(IV) Late Charge Option 2 Spanish Translation: "Cargos por Retrasos: Para un préstamo en el cual la cantidad fínanciada es menor de $100, el cargo por retraso en un pago que no se liquida por 10 días después de vencerse es 5% de la cantidad del pago. Para un préstamo en el cual la cantidad fínanciada es de $100 o más, el cargo por retraso en un pago que no se liquida por 10 días después de vencerse es de $10 o 5% de la cantidad del pago atrasado, lo que sea mayor."

(ii) The "Conceptos Financieros" are presented in the following figure:

Attached Graphic

(3) For loans negotiated in Spanish that are subject to Chapter 342, Subchapter G, the licensee must provide copies of both of the following TILA-RESPA integrated disclosures in Spanish:

(A) No later than the date required for the loan estimate under Regulation Z, 12 C.F.R. §1026.19(e), the licensee must provide to the debtor a copy of the "Estimación de Préstamo" provided by 12 C.F.R. Part 1026, Appendix H, Model Forms H-28(A) through H-28(E) and H-28(I). The licensee must select an appropriate model form based on the type of loan.

(B) No later than the date required for the closing disclosure under Regulation Z, 12 C.F.R. §1026.19(f), the licensee must provide to the debtor a copy of the "Declaración de Cierre" provided by 12 C.F.R. Part 1026, Appendix H, Model Forms H-28(F) through H-28(H) and H-28(J). The licensee must select an appropriate model form based on the type of loan.

(b) If a retail installment transaction under Chapter 348 is negotiated in Spanish, then the licensee may at its option deliver one or both of the following to the debtor:

(1) a Spanish translation of the retail installment sales contract that includes the disclosure form under Regulation Z, 12 C.F.R. §226.18 or §1026.18; or

(2) a copy of the "Notificación de Crédito Al Consumidor (Contrato de Menudeo a Plazos para Vehículo Automotor)," for which the licensee should select the appropriate late charge payment option, as presented in the following figure:

Attached Graphic

(c) Licensees may delete inapplicable provisions contained in a model disclosure described by this section, except for the TILA-RESPA integrated disclosures required under subsection (a)(3).

Source Note: The provisions of this §90.703 adopted to be effective November 5, 2015, 40 TexReg 7693