CHAPTER 347. MANUFACTURED HOME CREDIT TRANSACTIONS - Texas Statutes

FINANCE CODE

TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS

SUBTITLE B. LOANS AND FINANCED TRANSACTIONS

CHAPTER 347. MANUFACTURED HOME CREDIT TRANSACTIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 347.001. LEGISLATIVE FINDING. The legislature finds that

credit transactions, both credit sales and consumer loans, for

the purchase of manufactured homes should be regulated equally in

the same chapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.002. DEFINITIONS. (a) In this chapter:

(1) "Consumer" means a person to whom credit is extended in a

credit transaction. The term includes a comaker, endorser,

guarantor, surety, or another person who is obligated to repay

the extension of credit.

(2) "Credit document" means a written instrument evidencing a

credit transaction and includes all written agreements between

each consumer and creditor that relate to that transaction.

(3) "Credit transaction" means:

(A) any sale, loan, or other transaction involving a retail

purchase of a manufactured home and under which a person in a

written agreement, including a credit sales contract or loan

instrument, grants to another person a purchase money lien on the

manufactured home to secure an extension of credit that is:

(i) subject to a finance charge; or

(ii) payable in more than four installments, not including a

down payment; and

(B) a lease or bailment described by Section 347.003.

(4) "Creditor" means a:

(A) person who extends credit or arranges for the extension of

credit in a credit transaction; or

(B) retailer or broker, as defined by Section 1201.003,

Occupations Code, who participates in arranging for the extension

of credit in a credit transaction.

(5) "Manufactured home" has the meaning assigned by Section

1201.003, Occupations Code. The term includes furniture,

appliances, drapes, carpets, wall coverings, and other items that

are:

(A) attached to or contained in the structure; and

(B) included in the cash price and sold with the structure.

(b) To the extent possible, a word or phrase used in this

chapter, other than a term defined by this section, has the

meaning assigned by Part I, Consumer Credit Protection Act (15

U.S.C. Section 1601 et seq.) and its subsequent amendments, as

implemented by 12 C.F.R. 226.1 et seq.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.773, eff.

Sept. 1, 2003.

Sec. 347.003. BAILMENT OR LEASE AS CREDIT TRANSACTION. (a) A

bailment or lease of a manufactured home is a credit transaction

if the bailee or lessee:

(1) agrees to pay as compensation for use of the manufactured

home an amount that is substantially equal to or that exceeds the

aggregate value of the property and services involved; and

(2) on compliance with the agreement becomes the owner of the

manufactured home or has the option to become the owner of the

manufactured home, for nominal or no additional consideration.

(b) A bailment or lease that the bailee or lessee may terminate

at any time without penalty is not a credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.004. COMPLIANCE WITH FEDERAL CONSUMER CREDIT PROTECTION

ACT. (a) A creditor shall comply with all applicable

requirements, including required disclosures, under Part I,

Consumer Credit Protection Act (15 U.S.C. Section 1601 et seq.)

and its subsequent amendments, as implemented by 12 C.F.R. 226.1

et seq. (Regulation Z) adopted under that Act.

(b) A regulation, disclosure, or interpretation of this chapter

that is inconsistent or in conflict with a federal regulation,

disclosure, or interpretation does not apply.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.005. FEDERAL RESIDENTIAL MORTGAGE LOANS PROGRAMS. (a)

A creditor and consumer may agree to any provision in the credit

transaction that is expressly authorized in a program for

residential mortgage loans by the United States, including the

Office of Thrift Supervision, the Office of the Comptroller of

the Currency, or the Department of the Treasury.

(b) If a creditor and consumer agree on an alternative

residential mortgage loan from a program described by Subsection

(a), the creditor shall comply with all limitations and

requirements, including required disclosures, of the regulating

entity that relate to the loan.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.006. WAIVER NOT VALID. No act or agreement of the

consumer before or at the time of the making of a credit

transaction or purchase under the transaction is a valid waiver

of any provision of this chapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.007. APPLICATION OF CHAPTER TO COMMERCIAL LOANS. This

chapter does not apply to a credit transaction that is entered

into primarily for commercial or business purposes.

Added by Acts 2005, 79th Leg., Ch.

1018, Sec. 2.18, eff. September 1, 2005.

SUBCHAPTER B. CREDIT DOCUMENT

Sec. 347.051. APPEARANCE OF CREDIT DOCUMENT; CONSUMER NOTICE.

(a) The printed part of a credit document, other than

instructions for completion, must be in at least eight-point

type.

(b) A credit document must contain substantially:

"NOTICE TO THE CONSUMER--DO NOT SIGN THIS DOCUMENT BEFORE YOU

READ IT OR IF IT CONTAINS ANY BLANK SPACES. YOU ARE ENTITLED TO A

COPY OF THE DOCUMENT YOU SIGN. UNDER THE LAW YOU HAVE THE RIGHT

TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE AND OBTAIN A

SUBSTANTIAL REFUND OF THE CREDIT CHARGE. KEEP THIS DOCUMENT TO

PROTECT YOUR LEGAL RIGHTS."

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.052. DISCLOSURE OF AMOUNT OF DELINQUENCY CHARGE. The

creditor shall disclose in the credit document the amount or

method of computing the amount of a charge that is payable if a

payment on the credit transaction is late.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.053. PROVISIONS PROHIBITED IN CREDIT DOCUMENT. A

credit document may not:

(1) contain a power of attorney to confess judgment in this

state;

(2) contain an assignment of wages;

(3) provide that the consumer agrees not to assert against a

creditor or an assignee of the credit transaction a claim or

defense arising out of the sale; or

(4) authorize the creditor or a person acting on the creditor's

behalf to:

(A) enter the consumer's premises unlawfully; or

(B) commit a breach of the peace in the repossession of a

manufactured home.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.054. CONSUMER'S ACKNOWLEDGMENT OF DELIVERY OF CREDIT

DOCUMENT. (a) A consumer's acknowledgment of the delivery of a

copy of the credit document is conclusive proof that:

(1) the document was delivered to the consumer; and

(2) the document did not contain a blank space that was required

by this chapter to have been filled when the document was signed

by the consumer.

(b) In an action or proceeding by or against a subsequent

creditor who does not have knowledge to the contrary, a

consumer's acknowledgment of the delivery of a copy of the credit

document is conclusive proof that the creditor complied with this

section.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.055. CREDIT DOCUMENT AFTER AMENDMENT. After a credit

document is amended under Subchapter D, the document consists of:

(1) the original credit document;

(2) the writing required under Section 347.153 for that

amendment; and

(3) each amendment to the original credit document adopted

before that amendment.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.056. AUTHORITY OF CONSUMER CREDIT COMMISSIONER RELATING

TO A CREDIT DOCUMENT. The commissioner may not require the

inclusion of any specific language or a disclosure on a credit

document that is not expressly required by:

(1) this chapter; or

(2) a regulation of the Office of Thrift Supervision.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. FINANCE CHARGE RATES AND ADJUSTMENTS

Sec. 347.101. ADJUSTABLE RATE. A credit transaction may provide

for an adjustable interest rate or time price differential in

accordance with this subchapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.102. REQUIREMENTS FOR RATE ADJUSTMENTS. (a) The

interest rate or time price differential in a credit transaction

may be adjusted at stated regular intervals if the credit

document expressly:

(1) provides for the adjustment; and

(2) states the index described by Subsection (b) that is being

used for the adjustment.

(b) The index must be:

(1) the monthly average gross yield to the Federal National

Mortgage Association on accepted bids in weekly or biweekly

auctions for four-month commitments to purchase FHA-insured or

VA-guaranteed home mortgages, as published in the Federal Reserve

Bulletin;

(2) the monthly average yield on United States Treasury

securities adjusted to a constant maturity of five years as

published in the Federal Reserve Bulletin; or

(3) an index expressly approved by the Office of Thrift

Supervision or by the Office of the Comptroller of the Currency,

Department of the Treasury, for adjustable or variable interest

rates on residential mortgage loans.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.103. RATE ADJUSTMENT INDEX BASE. The index base for an

adjustment of the interest rate or time price differential is set

by the index value on the first day of the month in which the

credit document is dated.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.104. AMOUNT OF RATE ADJUSTMENT. (a) The amount of a

rate adjustment is computed by subtracting the index base or, for

a change after the initial change, the index value used for the

preceding rate adjustment from the index value on the first day

of a month that precedes the 50th day before the date on which

the adjustment is to take effect. The amount is applied to the

rate applicable to the credit transaction.

(b) The rate in a credit transaction may be adjusted only if the

adjustment results in a change of at least one-eighth of one

percent a year.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.105. MAXIMUM RATE ADJUSTMENTS. (a) The total of the

rate adjustments for any six-month period may not exceed one-half

of one percent a year.

(b) If the stated interval for rate adjustments is a 12-month

period or longer, a rate adjustment may not exceed one percent a

year.

(c) The total of all rate adjustments over the term of the

credit transaction may not exceed the least of:

(1) one-half of the initial rate;

(2) eight percent; or

(3) a rate, expressed as a percentage, computed by dividing the

term of the loan in years by two.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.106. MANDATORY DECREASE; OPTIONAL INCREASE. (a) If a

computation under Section 347.104 results in a decrease, the

creditor shall decrease the credit transaction's rate. If the

creditor has agreed to impose periodic or aggregate limitations

on rate adjustments that are smaller or more restrictive than the

limitations prescribed by Section 347.105, those limitations

apply to the decrease.

(b) A creditor may waive an increase that results from a

computation under Section 347.104.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.107. NOTICE OF RATE ADJUSTMENT. (a) After the notice

provided by this section has been given, the rate shall be

increased or decreased by the amount determined by this

subchapter.

(b) Before the 40th day preceding the payment date on which a

rate adjustment is to take effect, the creditor shall mail to the

consumer, postage prepaid, a notice that states:

(1) the initial credit transaction rate or the adjusted rate in

effect on the date of the notice, as appropriate;

(2) the index base, or the index value used to compute the

preceding rate adjustment, as appropriate, and the date on which

the index base or value was determined;

(3) the index value used to compute the rate adjustment for

which the notice is sent and the date on which the index value

was determined;

(4) the amount of the rate adjustment;

(5) the new adjusted rate;

(6) the amount of the monthly payments on the indebtedness on

the date of the notice;

(7) the adjusted amount of the monthly payments and the date on

which the adjustment takes effect; and

(8) a statement of the prepayment rights of the consumer as set

forth in the credit document.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.108. PROHIBITION ON USE OF RATE ADJUSTMENT AND CERTAIN

MORTGAGES. A credit transaction that provides for a rate

adjustment under this subchapter may not permit the rate

adjustment to be combined with a mortgage loan that has a term of

five years or less or contain a provision that otherwise

additionally allows the creditor to renegotiate, modify, or

otherwise adjust the rate or term of the transaction within the

60-month period after the date of the transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.109. COMPUTATION OF FINANCE CHARGE FOR DISCLOSURE. (a)

This section applies only for purposes of disclosure.

(b) The finance charge on a credit transaction is computed on

the unpaid balance from the effective date of the transaction

provided by the credit document until the payment date of the

final installment, notwithstanding that the total of payments is

required to be repaid in installments.

(c) The finance charge on a credit transaction that includes an

adjustable rate provision is computed on the amount financed

using the initial contract rate.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.110. USE OF OPTIONAL CEILING. (a) This section

applies to a credit transaction only if the federal usury

preemptions for residential mortgage loans contained in the

Veterans' Disability Compensation and Survivors' Benefits Act of

1979 (38 U.S.C. Section 101 et seq.), the Housing and Community

Development Act of 1979 (42 U.S.C. Section 5401 et seq.), and the

Depository Institutions Deregulation and Monetary Control Act of

1980 (12 U.S.C. Section 1735f-7) are expressly made inapplicable

to transactions made in this state by an Act of the legislature

of this state. Application of this section begins on the

effective date of that Act.

(b) The interest or time price differential in a credit

transaction may not exceed the amount obtained by applying a

simple interest rate equal to 13.32 percent a year to the unpaid

balance for the scheduled term of the transaction.

(c) If the credit transaction is payable for a period that is

shorter or longer than a year or is for an amount that is less or

greater than $100, the amount of the maximum charge computed

under this section is decreased or increased proportionately.

(d) For the purpose of a computation under this section, 15 or

more days of a month may be considered a full month.

(e) A transaction payable other than in substantially equal

successive monthly installments beginning one month from the date

of the credit document may provide for a finance charge that does

not exceed an amount that, having due regard for the schedule of

payments, provides the same effective return as if the credit

transaction were payable in substantially equal successive

monthly installments beginning one month from the date of the

credit document.

(f) As an alternative to the rate authorized under Subsection

(b), a credit transaction may provide for a rate that does not

exceed the applicable optional interest rate ceiling under

Chapter 303.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. AMENDMENT OR PREPAYMENT OF CREDIT TRANSACTION

Sec. 347.151. AMENDMENT OF CREDIT TRANSACTION. (a) On a

consumer's request, a creditor may:

(1) extend or defer the scheduled due date of all or part of one

or more installments of the credit transaction;

(2) renew, restate, or reschedule the unpaid balance of the

transaction; or

(3) increase or reduce the number of installments of the

transaction.

(b) A creditor may collect a charge that does not exceed the

amount computed by applying the credit transaction's interest

rate or time price differential applicable on the date of

adjustment to the remaining amount of the unpaid balance,

computed under Section 347.155, for the period that the amount is

extended or deferred.

(c) The creditor and consumer may agree to an unlimited number

of extensions. The period of each extension is the period agreed

to by the creditor and consumer.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.152. ALTERNATE METHOD OF AMENDMENT OF CREDIT

TRANSACTION. (a) As an alternative to Section 347.151 the

creditor, on the consumer's request, may agree to amend an

original credit transaction by renewing, restating, or

rescheduling the unpaid part of the total of payments.

(b) The charge for the amended credit transaction is computed on

the unpaid balance of the transaction for the term of the

transaction at the rate applicable to the transaction.

(c) For the purpose of Subsection (b), the unpaid balance of an

amended credit transaction is computed by:

(1) adding:

(A) the unpaid balance of the transaction preceding the

amendment;

(B) the cost of insurance incidental to the amendment;

(C) additional necessary official fees; and

(D) each accrued delinquency and collection charge; and

(2) subtracting from the total under Subdivision (1) the

prepayment refund credit required by Section 347.155.

(d) The provisions of this chapter relating to minimum charges

and acquisition costs do not apply to the computation of the

unpaid balance for an amended credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.153. REQUIREMENTS FOR AMENDMENT. (a) Before an

amendment of a credit transaction may take effect it must be:

(1) confirmed in writing;

(2) signed by the consumer; and

(3) returned to the creditor.

(b) The writing must state:

(1) the terms of the amendment; and

(2) the new due dates and amounts of the installments.

(c) The creditor shall:

(1) deliver a copy of the writing to the consumer; or

(2) mail a copy of the writing to the consumer's address shown

on the credit document.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.154. ORAL AMENDMENT NOT BINDING. An oral amendment to

a credit transaction is not binding on the consumer or the

creditor.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.155. PREPAYMENT. (a) A consumer may prepay in full

the unpaid balance of a credit transaction at any time before

maturity.

(b) On prepayment, after deduction of an acquisition charge that

does not exceed $50, the consumer is entitled to a refund credit

of the time price differential or interest. The amount of the

credit is computed on an actuarial basis in accordance with

regulations of the Office of Thrift Supervision adopted under the

Depository Institutions Deregulation and Monetary Control Act of

1980 (12 U.S.C. Section 4a et seq.) for the prepayment of a

mortgage loan that is secured by a first lien on a residential

manufactured home.

(c) In making the computation under Subsection (b), the creditor

may assume that payments on the credit transaction have been made

as originally scheduled, ignoring any difference created by a

late or early payment.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. INSURANCE

Sec. 347.201. PROPERTY INSURANCE. (a) A creditor may require a

consumer to insure the property involved in a credit transaction

with coverage designated by the creditor.

(b) Insurance required under this section may include federal

flood coverage.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.202. STATEMENT OF REQUIRED INSURANCE. (a) If

insurance is required in connection with a credit transaction,

the creditor shall give to the consumer a statement that clearly

and conspicuously states that:

(1) insurance is required in connection with the transaction;

and

(2) the consumer as an option may obtain and furnish equivalent

insurance coverage through an insurance policy obtained from an

insurance company authorized to do business in this state subject

to the limitations of Section 347.208.

(b) The statement may be made with or be a part of the credit

document.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.203. CONSUMER'S FAILURE TO OBTAIN REQUIRED INSURANCE.

(a) If at any time the consumer fails to obtain the required

insurance, the creditor may:

(1) treat the failure as a default; or

(2) purchase the required insurance and add to the unpaid

balance of the credit transaction the premium of the insurance

and interest, at the interest rate or time price differential

applicable to the transaction on the date the insurance is

purchased.

(b) The insurance purchased under Subsection (a) may be in an

amount up to but not in excess of the prepayment amount under

Section 347.155 if the balance were prepaid on the date that the

insurance is purchased.

(c) If insurance is purchased under Subsection (a), the creditor

shall notify the consumer that:

(1) the insurance has been purchased under this section; and

(2) the premium for the insurance and interest on the premium

have been added to the unpaid balance.

(d) The creditor may determine the period and number of

installments in which the consumer is to pay the premium and

interest, including payment of the total amount on the date of

the last installment, payment in equal increments added to each

of the remaining installments, or payment in a lesser number of

installments or in unequal increments.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.204. PURCHASE OF ADDITIONAL INSURANCE AFTER DATE OF

CREDIT DOCUMENT. (a) A consumer may:

(1) purchase any insurance authorized by this chapter after the

date of the credit document; and

(2) include the amount of the insurance premium in the unpaid

balance of the credit transaction.

(b) Interest accrues on the insurance premium at a rate that

does not exceed the interest rate or time price differential

applicable to the credit transaction on the date the insurance is

purchased.

(c) The additional insurance premium and interest may be paid in

any period and any number of installments to which the consumer

and creditor agree.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.205. STATEMENT FOR PURCHASE OF OPTIONAL INSURANCE. (a)

A consumer who elects to purchase optional insurance must sign a

statement that:

(1) indicates the consumer's election; and

(2) describes the term, premium, and type of insurance

purchased.

(b) The statement may be a part of the credit document or a part

of a separate document.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.206. REQUIREMENTS FOR INSURANCE CHARGE IN CREDIT

TRANSACTION. Insurance required by or included in a credit

transaction must be written:

(1) at lawful rates;

(2) in accordance with the Insurance Code; and

(3) by a company authorized to do business in this state.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.207. INSURANCE DISCLOSURES IN CREDIT DOCUMENT. A

credit document must disclose:

(1) the term, premium, and type of insurance the cost of which

is included in the unpaid balance of the credit transaction; or

(2) the term and type of insurance required in accordance with

this chapter if the cost of the insurance is not included in the

unpaid balance.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.208. CREDITOR MAY REFUSE TO ACCEPT POLICY. (a) If the

consumer obtains insurance required under this chapter from

someone other than the creditor, the creditor is entitled for

good cause to refuse to accept certain insurance policies from

insurance companies designated by the creditor.

(b) On the consumer's request the creditor shall deliver to the

consumer a writing that states the reason for a refusal under

Subsection (a).

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.209. CREDITOR'S DUTY IF INSURANCE IS CANCELED,

ADJUSTED, OR TERMINATED. (a) If insurance for which a charge is

included in a credit transaction is canceled, adjusted, or

terminated, the creditor shall:

(1) credit to the final maturing installments of the credit

transaction the amount of the refund received by the creditor for

unearned insurance premiums; and

(2) if the amount to be credited under Subdivision (1) is more

than the unpaid balance of the credit transaction, refund to the

consumer the difference between those amounts.

(b) A cash refund is not required under this section if the

amount of the refund is less than $1.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.210. SINGLE INTEREST POLICY PROHIBITED. Insurance that

protects only the interest of the creditor is prohibited and may

not be financed as part of a credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.211. GAIN OR ADVANTAGE FROM INSURANCE NOT CHARGE. Any

gain or advantage to a creditor or a creditor's employee,

officer, director, agent, general agent, affiliate, or associate

from insurance under this chapter or the provision or sale of

insurance is not an additional finance charge or an additional

charge in connection with a credit transaction except as

specifically provided by this chapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER F. PAYMENT OF INSURANCE AND TAXES

Sec. 347.251. FINANCING INSURANCE. (a) A creditor may finance

as part of a credit transaction insurance:

(1) required in accordance with Section 347.201; or

(2) requested by the consumer.

(b) The cost of the insurance required under Section 347.201 may

be included as a separate charge in the credit transaction.

(c) The premium of any insurance included in the credit

transaction may be included in the unpaid balance of the credit

transaction and paid as part of the total of payments regardless

of whether the term of the insurance is less than the term of the

credit transaction.

(d) A consumer and creditor may agree that the purchase of

additional insurance under Section 347.204 will be:

(1) in accordance with an insurance premium financing agreement

made under the Insurance Code; and

(2) separate from the credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.252. PAYMENT OF INSURANCE PREMIUMS WITH INSTALLMENTS.

For insurance coverage required under Section 347.201 in the

second and subsequent years of the credit transaction, a creditor

may require the consumer to pay on each installment due date an

amount equal to one-twelfth of the reasonably estimated yearly

premium.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.253. ADJUSTMENT OF AMOUNTS PAID TO CREDITOR FOR

INSURANCE. (a) If the amount held by a creditor to pay

insurance premiums and the amounts for insurance to be paid to

the creditor with installments before the due date of an

insurance premium exceed the amount required to pay the insurance

premium when it is due, the creditor, at the consumer's option,

shall:

(1) repay the excess to the consumer; or

(2) credit the excess to the payment of the consumer's future

insurance premium installments.

(b) If the amount held by the creditor to pay insurance premiums

is not sufficient to pay an insurance premium when it is due, the

consumer, not later than the 30th day after the date on which the

creditor mails to the consumer notice requesting the consumer to

pay the amount of the deficiency, shall pay to the creditor an

amount equal to the amount of the deficiency.

(c) If the consumer fails to pay the amount under Subsection (b)

for insurance required by the creditor under Section 347.201, the

creditor may treat the deficiency in the same manner as provided

by Section 347.203 for the consumer's failure to obtain the

required insurance.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.254. PAYMENT OF TAXES THROUGH THE CREDITOR. (a)

Except as provided by Subsection (c), a creditor shall require a

consumer to pay ad valorem taxes on the manufactured home through

the creditor.

(b) The creditor may:

(1) include in the credit transaction an amount equal to a

reasonable estimate of the tax for the first year; or

(2) require that the consumer pay on each installment due date

an amount equal to one-twelfth of the reasonable estimate of the

tax for the first year.

(c) The escrow requirement of Subsection (a) does not apply to a

transaction involving a manufactured home if the creditor is a

federally insured financial institution and does not otherwise

require the escrow of taxes, insurance premiums, fees, or other

charges in connection with loans secured by residential real

property.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2003, 78th Leg., ch. 338, Sec. 40, eff. June 18,

2003.

Sec. 347.255. ADJUSTMENT OF AMOUNTS PAID TO CREDITOR FOR TAXES.

(a) If the amount held by a creditor to pay ad valorem taxes on

the manufactured home and the amounts for taxes to be paid to the

creditor with installments before the due date of the tax exceed

the amount required to pay the tax when it is due, the creditor,

at the consumer's option, shall:

(1) repay the excess to the consumer; or

(2) credit the excess to the payment of the consumer's future

tax installments.

(b) If the amount held by the creditor to pay ad valorem taxes

on the manufactured home is not sufficient to pay the tax when it

is due, the consumer, before the 31st day after the date on which

the creditor mails to the consumer notice requesting the consumer

to pay the amount of the deficiency, shall pay to the creditor an

amount equal to the amount of the deficiency.

(c) If the consumer fails to pay the amount under Subsection

(b), the creditor may treat the deficiency in the same manner as

provided by Section 347.203 for the consumer's failure to obtain

the required insurance.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.256. CREDITOR'S ACTION ON CONSUMER'S FAILURE TO PAY

TAXES. (a) If a consumer does not pay a tax that has been

assessed against the manufactured home, the creditor may treat

the failure as a default or may:

(1) pay to the appropriate taxing authority the unpaid tax and

any interest or other charge due; and

(2) add to the unpaid balance of the credit transaction the

amounts paid to the taxing authority and interest, at the

interest rate or time price differential applicable to the

transaction on the date payment is made.

(b) If the creditor pays a tax under this section, the creditor

shall notify the consumer that:

(1) the tax and interest or other charges have been paid, as

appropriate; and

(2) those amounts have been added to the unpaid balance of the

credit transaction.

(c) The creditor may determine the period and number of

installments in which the consumer is required to pay the amounts

added to the unpaid balance, including payment of the entire

amount on the date of the last installment, payment in equal

increments added to each of the remaining installments, or

payment in a lesser number of installments or unequal increments.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.257. AGREEMENT TO INCLUDE TAXES IN CREDIT TRANSACTION.

(a) A consumer and creditor may agree to:

(1) have the creditor pay taxes, and interest or other charges,

assessed by a taxing authority against a manufactured home after

the date of the credit document; and

(2) include the amount paid by the creditor in the unpaid

balance of the credit transaction.

(b) Interest on the amounts added to the unpaid balance under

this section accrues at the interest rate or time price

differential applicable to the credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.258. DEPOSIT AMOUNTS PAID FOR TAXES OR INSURANCE. (a)

This section applies to amounts received in installments by a

creditor for the payment of ad valorem taxes or insurance

premiums.

(b) The creditor shall deposit and hold the amount in an

institution the deposits or accounts of which are insured or

guaranteed by a federal or state agency.

(c) The creditor shall use the amount to pay the ad valorem

taxes or insurance on the manufactured home, as appropriate.

(d) The creditor may not charge an amount for:

(1) holding or paying an amount received;

(2) analyzing the account in which the amount is deposited; or

(3) verifying or compiling the bills to be paid.

(e) The creditor is not required to pay to the consumer any

interest or earnings on an amount received.

(f) The creditor shall give to the consumer, without charge, an

annual accounting of the amounts received showing credits and

debits and the purpose for which each debit was made.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER G. MISCELLANEOUS FEES AND CHARGES

Sec. 347.301. FEES FOR TRANSACTIONS WITHOUT REAL PROPERTY. (a)

This section applies only to a credit transaction that does not

involve real property.

(b) Only a fee or tax that is paid by the creditor as required

by law, including a rule, or a fee or tax paid on behalf of the

consumer to a governmental entity in relation to the credit

transaction may be charged to the consumer.

(c) A documentary fee for the preparation of a credit document

may not be charged to the consumer.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.21(a), eff. Sept.

1, 1999.

Sec. 347.302. CHARGE PROHIBITED. A creditor may not charge a

consumer any amount in connection with processing a credit

transaction rate adjustment under Subchapter C.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.307. CHARGES ON REPOSSESSION. A credit document may

provide for payment of:

(1) reasonable attorney's fees;

(2) court costs and disbursements; and

(3) the charge and collection of actual and reasonable

out-of-pocket expenses incurred in connection with repossession

of the manufactured home that secures the payment of the credit

transaction or foreclosure of a lien on the manufactured home,

including costs of storing, reconditioning, and reselling the

manufactured home, subject to the standards of good faith and

commercial reasonableness set by the Business & Commerce

Code.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.308. FEE FOR TRANSFER OF OBLIGOR ON DEBT. A creditor

may:

(1) agree to accept a subsequent consumer as an obligor under an

existing obligation; and

(2) charge a transfer fee that does not exceed the greater of:

(A) $50; or

(B) one-half of one percent of the unpaid balance of the credit

transaction computed under Section 347.155.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER H. ACTIONS ON DEFAULT

Sec. 347.351. DELINQUENCY CHARGE ON DEFAULT. (a) On each

installment in default for more than 15 days, a creditor may

collect a delinquency charge that does not exceed the lesser of

an amount equal to five percent of the installment or $20.

(b) Only one delinquency charge may be collected on an

installment, regardless of the period for which the installment

remains in default.

(c) The charge or collection of a delinquency charge does not

affect the right of a creditor to accelerate the debt under this

subchapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.352. ACCELERATION OF DEBT MATURITY. A creditor may

accelerate the maturity of all or a part of the amount owed under

a credit transaction only if the consumer is in default on the

performance of an obligation under the credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.353. COMPUTING AMOUNT OWED FOR PURPOSE OF ACCELERATION.

In computing the amount that is owed under a credit transaction,

the creditor shall grant to the consumer a refund of the finance

charge computed under Section 347.155.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.354. ACCRUAL OF INTEREST ON ACCELERATION. If payment

of a debt is accelerated, interest accrues on the amount owed

under the credit transaction, including expenses authorized under

Section 347.307 that are incurred, at a rate equal to the rate

applicable to the credit transaction at the time of the

acceleration.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.355. REPOSSESSION ON DEFAULT. (a) If a consumer is in

default, the creditor who possesses the first recorded perfected

security interest may repossess the manufactured home.

(b) If the manufactured home is affixed to real property, the

creditor, after notice, may remove the manufactured home from the

real property in accordance with the applicable provisions of the

Business & Commerce Code as if it were personal property.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.356. REQUIREMENTS FOR ACTION TO REPOSSESS, FORECLOSE,

OR ACCELERATE PAYMENT OF ENTIRE DEBT. An action to repossess a

manufactured home, foreclose a lien on a manufactured home, or

accelerate payment of the entire unpaid balance of a credit

transaction must comply with the regulations of the Office of

Thrift Supervision relating to the disclosure required for

repossession, foreclosure, or acceleration except in extreme

circumstances, including abandonment or voluntary surrender of

the manufactured home.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.357. DISPOSAL OF INSURANCE AND TAX ESCROW ACCOUNT ON

DEFAULT. If a consumer is in default, the amount in the

consumer's insurance and tax escrow accounts established under

Section 347.258 shall be applied to the remaining balance of the

credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER I. SECURITY INTERESTS IN MANUFACTURED HOMES

Sec. 347.401. PRIORITY OF SECURITY INTEREST FOR UNPAID RENTAL OF

REAL PROPERTY. Except as provided by this subchapter, a lien or

charge against a manufactured home for unpaid rental of the real

property on which the manufactured home is or has been located is

subordinate to the rights of a creditor with a security interest

or lien that is:

(1) perfected under this chapter; and

(2) recorded on the document of title issued on the manufactured

home.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.402. POSSESSORY LIEN. (a) The owner of the real

property on which a manufactured home is or has been located and

for which rental charges have not been paid has a possessory lien

that is not subject to Section 347.401 to secure rental charges

described by Subsection (b) if:

(1) the creditor described by Section 347.401 repossesses the

manufactured home when the charges have not been paid; and

(2) the owner of the real property has mailed to the creditor by

certified mail, return receipt requested, written notice of the

unpaid charges.

(b) The possessory lien secures rental charges that begin to

accrue:

(1) for a manufactured home that is abandoned or voluntarily

surrendered by the consumer, from and after the 15th day after

the date on which the creditor receives the written notice of the

unpaid charges; or

(2) for a manufactured home that is not abandoned or voluntarily

surrendered by the consumer, from and after the 15th day after

the first day on which both:

(A) all notice and grace periods that the creditor is required

to give the consumer before repossession under any applicable

contract or law have expired; and

(B) the creditor has received the written notice of the unpaid

charges.

(c) The maximum daily rental charge that is secured by the

possessory lien is equal to one-thirtieth of the monthly rental

payment last paid by the consumer.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.403. AMOUNTS THAT MAY BE RECOVERED BY REAL PROPERTY

OWNER. In addition to the recovery of the rental charges, the

owner of real property who is required to retain legal counsel to

recover the amounts subject to the possessory lien under Section

347.402 is entitled to recover:

(1) other actual damages;

(2) attorney's fees; and

(3) court costs.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.404. LIABILITY OF REAL PROPERTY OWNER FOR REFUSAL TO

ALLOW CREDITOR TO REPOSSESS MANUFACTURED HOME. (a) Unless an

owner of real property has a possessory lien that has priority

under Section 347.402, the owner of the real property may not

refuse to allow a creditor to repossess and move the manufactured

home.

(b) An owner of the real property who unlawfully refuses to

allow the creditor to repossess and move the manufactured home is

liable to the creditor for:

(1) an amount computed for each day that the owner of the real

property maintains possession of the home equal to one-thirtieth

of the monthly payment last paid by the consumer on the credit

transaction;

(2) other actual or exemplary damages;

(3) attorney's fees;

(4) court costs; and

(5) any injunctive relief ordered by a court.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER J. RIGHTS AND DUTIES OF CREDITOR AND RESIDENTIAL

MORTGAGE LOAN ORIGINATOR

Sec. 347.451. REGISTRATION OF CERTAIN CREDITORS. (a) A

creditor who is not an authorized lender under Chapter 342 or a

credit union shall:

(1) register with the Office of Consumer Credit Commissioner;

and

(2) pay an annual fee of $15 for each location at which a credit

transaction is originated, serviced, or collected.

(b) The finance commission by rule may establish procedures to

facilitate the registration and collection of fees under this

section, including rules staggering the due dates of the fees

throughout the year.

(b-1) A registered creditor that engages in the activity of

originating a residential mortgage loan must meet the surety bond

or recovery fund fee requirement, as applicable, of the

creditor's residential mortgage loan originator under Section

180.058.

(c) If a creditor fails to renew the creditor's registration,

the commissioner shall, not later than the 30th day after the

date of expiration of the registration, notify the creditor of

the expiration and of the procedures applicable to renewal.

(d) A creditor shall file the registration renewal and pay the

annual registration fee to the commissioner not later than the

30th day after the date on which the creditor receives the notice

under Subsection (c).

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 97, eff. Sept. 1,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1104, Sec. 13, eff. June 19, 2009.

Sec. 347.4515. RESIDENTIAL MORTGAGE LOAN ORIGINATOR LICENSE

REQUIRED. (a) In this section, "Nationwide Mortgage Licensing

System and Registry" and "residential mortgage loan originator"

have the meanings assigned by Section 180.002.

(b) Unless exempt under Section 180.003, an individual who acts

as a residential mortgage loan originator in the making,

transacting, or negotiating of an extension of credit subject to

this chapter must:

(1) be individually licensed to engage in that activity under

this chapter;

(2) be enrolled with the Nationwide Mortgage Licensing System

and Registry as required by Section 180.052; and

(3) comply with other applicable requirements of Chapter 180 and

rules adopted under that chapter.

(c) The finance commission shall adopt rules establishing

procedures for issuing, renewing, and enforcing an individual

license under this section. In adopting rules under this

subsection, the finance commission shall ensure that:

(1) the minimum eligibility requirements for issuance of an

individual license are the same as the requirements of Section

180.055;

(2) the minimum eligibility requirements for renewal of an

individual license are the same as the requirements of Section

180.059; and

(3) the applicant pays:

(A) an investigation fee in a reasonable amount determined by

the commissioner; and

(B) an annual license fee in an amount determined as provided by

Section 14.107.

(d) The finance commission may adopt rules under this chapter as

required to carry out the intentions of the federal Secure and

Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No.

110-289).

Added by Acts 2009, 81st Leg., R.S., Ch.

1104, Sec. 14, eff. June 19, 2009.

Sec. 347.452. ACQUISITION AND TRANSFER OF CREDIT TRANSACTION OR

BALANCE. (a) A person may acquire or agree to acquire from

another person a credit transaction or an unpaid balance under a

credit transaction on the terms and for the price to which the

parties agree.

(b) Notice to the consumer of the transfer of rights or a

requirement that the creditor be deprived of dominion over

payments on a credit transaction or over a manufactured home that

is returned to or repossessed by the creditor is not necessary

for a written transfer of the credit transaction or an unpaid

balance under the transaction to be valid as against a creditor,

subsequent purchaser, pledgee, mortgagee, or lien claimant of the

creditor.

(c) Unless the consumer has notice of the transfer of the

consumer's credit transaction or an unpaid balance under the

transaction, a payment made by the consumer to the creditor last

known to the consumer is binding on each subsequent creditor.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.453. EFFECT OF DISCLOSURE BY ONE OF SEVERAL CREDITORS.

In a credit transaction involving more than one creditor, the

disclosure of an item by a creditor satisfies the requirement to

disclose that item regardless of which creditor makes the

disclosure.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.454. DISCLOSURE IF MORE THAN ONE CONSUMER. In a credit

transaction involving more than one consumer, the creditor is

required to give the disclosures required by this chapter to only

one of the consumers.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.455. REAL PROPERTY IN CREDIT TRANSACTION. (a) A

creditor and consumer may agree to include real property in the

cash price of a credit transaction if:

(1) the real property does not exceed 200 acres;

(2) the real property is purchased by the consumer

simultaneously or in conjunction with the purchase of the

manufactured home, regardless of whether the real property and

manufactured home are sold by the same person; and

(3) the creditor and consumer agree that the manufactured home

is to be attached to the real property within a reasonable time.

(b) If the real property is included in the cash price of a

credit transaction, the creditor may:

(1) charge a fee that is ordinarily associated with a real

property transaction and is not prohibited by law, including a

fee that is associated with a real property transaction and

excluded from a finance charge under this chapter by the Consumer

Credit Protection Act (15 U.S.C. Section 1601 et seq.) and 12

C.F.R. Section 226.1 et seq. (Regulation Z) adopted under that

Act; and

(2) elect to treat the manufactured home as if it were

residential real property for all purposes in connection with the

credit transaction by conspicuously disclosing that election to

the consumer.

(c) On an election under Subsection (b)(2):

(1) the credit transaction is considered to be a residential

real property loan for all purposes; and

(2) this chapter, other than the definitions assigned by this

chapter, does not apply to the credit transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER K. CREDITOR'S LIABILITY; PENALTIES

Sec. 347.501. CREDITOR'S LIABILITY RELATED TO DEPOSIT. A

creditor is liable for the penalty provided by Section 349.003 if

the creditor:

(1) fails to order the manufactured home or fails to hold the

manufactured home in inventory in accordance with the deposit

agreement under Section 347.303 or 347.304, respectively; or

(2) retains as a deposit an amount that exceeds the amount

authorized by Subchapter H.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.502. LIABILITY FOR CHARGE EXCEEDING AMOUNT AUTHORIZED.

(a) Notwithstanding Chapter 349, a creditor who contracts for,

charges, or receives a charge relating to a credit transaction,

other than interest or time price differential, that is more than

that authorized by this chapter is liable to the consumer as

provided by Section 349.003.

(b) For purposes of this section, a late fee, default charge, or

delinquency charge is included as a charge relating to a credit

transaction.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.503. CREDITOR'S LIABILITY FOR ERROR IN PAY-OFF

QUOTATION. Notwithstanding Chapter 349, a creditor that responds

to a consumer's request for a pay-off quotation under this

chapter by delivering to the consumer a written statement

indicating that the consumer owes a total amount on the credit

transaction that exceeds the amount authorized by this chapter is

liable to the consumer under Section 349.003.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.504. CREDITOR'S LIABILITY FOR ORAL OR UNSOLICITED

WRITTEN STATEMENT OF AMOUNT OWED. On a credit transaction a

creditor is not liable for an oral statement of an amount owed or

for a written statement of an amount owed that is not solicited

by a debtor unless the statement:

(1) is made with a demand by a creditor that the consumer pay an

amount that exceeds the amount authorized by this subtitle; or

(2) is contained in a solicitation to renew or refinance

existing debt.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.505. PENALTY FOR FAILURE TO REGISTER. (a) The

commissioner may impose a penalty not to exceed $50 for failure

to register as required by Section 347.451(a).

(b) The commissioner may impose a penalty not to exceed $250 for

failure to renew an existing registration and submit the

appropriate fee before the expiration of the period described by

Section 347.451(d).

(c) The penalties provided by this section are the exclusive

penalties for a violation of Section 347.451.

(d) The fact that a creditor was not registered as required by

Section 347.451 when a contract was executed does not:

(1) render a contract invalid or unenforceable if the contract

is otherwise enforceable; or

(2) subject the creditor to liability under any other law,

including common law, other than the liability established by

this section.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 347.506. WHEN ACT OR OMISSION NOT VIOLATION. (a) An act

or omission does not violate this chapter if the act or omission

conforms to an interpretation of any provision of this chapter

that is in effect at the time of the act or omission and that:

(1) was made by the commissioner under Section 14.108; or

(2) is a final decision of an appellate court of this state or

the United States.

(b) If the interpretation or decision is modified, rescinded, or

invalidated by a subsequent interpretation or final decision, the

subsequent interpretation or final decision does not apply to a

credit transaction made before the effective date of the

subsequent interpretation or final decision.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.