Tex. Fin. Code Section 348.104
Time Price Differential for Contract with Equal Monthly Successive Payments

(a)

A retail installment contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract may provide for a time price differential that does not exceed:

(1)

the add-on charge provided by this section; or

(2)

$25 if the add-on charge under Subdivision (1) is less than $25.

(b)

The add-on charge is $7.50 per $100 per year on the principal balance for a new motor vehicle designated by the manufacturer by a model year that is not earlier than the year in which the sale is made.

(c)

The add-on charge is $10 per $100 per year on the principal balance for:

(1)

a new motor vehicle not covered by Subsection (b); or

(2)

a used motor vehicle designated by the manufacturer by a model year that is not more than two years before the year in which the sale is made.

(d)

The add-on charge is $12.50 per $100 per year on the principal balance for a used motor vehicle not covered by Subsection (c) that is a motor vehicle designated by the manufacturer by a model year that is not more than four years before the year in which the sale is made.

(e)

For a used motor vehicle not covered by Subsection (c) or (d), the add-on charge is:

(1)

$15 per $100 per year on the principal balance; or

(2)

$18 per $100 per year on the principal balance if the principal balance under the retail installment contract does not exceed $300.

(f)

The time price differential is computed on the original principal balance under the retail installment contract from the date of the contract until the maturity of the final installment, notwithstanding that the balance is payable in installments.

(g)

If the retail installment contract 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 time price differential computed under this section is decreased or increased proportionately.

(h)

For the purpose of a computation under this section, 16 or more days of a month may be considered a full month.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 5, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 11, eff. September 1, 2011.

Source: Section 348.104 — Time Price Differential for Contract with Equal Monthly Successive Payments, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­348.­htm#348.­104 (accessed Jun. 5, 2024).

348.001
Definitions 348.002
Bailment or Lease as Retail Installment Transaction 348.003
Classification as Retail Installment Transaction Unaffected 348.004
Cash Price 348.005
Itemized Charge 348.006
Principal Balance 348.007
Applicability of Chapter 348.008
Applicability of Other Statutes to Retail Installment Transaction 348.009
Federal Disclosure Requirements Applicable 348.010
Additional Information Allowed in Contract 348.011
Order of Items in Contract 348.012
Applicability of Insurance Premium Financing Provisions 348.013
Conditional Delivery Agreement 348.014
Transaction Conditioned on Purchase of Vehicle Protection Product Prohibited 348.0015
Presumption Regarding Noncommercial Vehicles 348.0091
Disclosure of Equity in Trade-in Motor Vehicle 348.101
Retail Installment Contract General Requirements 348.102
Contents of Contract 348.103
Time Price Differential for Retail Installment Contract 348.104
Time Price Differential for Contract with Equal Monthly Successive Payments 348.105
Use of Optional Ceiling 348.106
Time Price Differential for Other Contracts 348.107
Charge for Default in Payment of Installment 348.108
Charges for Collecting Debt 348.109
Acceleration of Debt Maturity 348.110
Delivery of Copy of Contract 348.111
Buyer’s Right to Rescind Contract 348.112
Buyer’s Acknowledgment of Delivery of Contract Copy 348.113
Amendment of Retail Installment Contract 348.114
Charges for Deferring Installment 348.115
Charge for Other Amendment 348.116
Confirmation of Amendment 348.117
Contract After Amendment 348.118
Prepayment of Contract 348.119
Refund Credit on Prepayment 348.120
Amount of Refund Credit for Monthly Installment Contract 348.121
Amount of Refund Credit for Other Contracts 348.122
Reinstatement of Contract After Demand for Payment 348.123
Refinancing of Large Installment 348.124
Debt Cancellation Agreements 348.125
Trade-in Credit Agreements Offered in Connection with Retail Installment Contracts 348.201
Property Insurance 348.202
Credit Life and Credit Health and Accident Insurance 348.203
Maximum Amount of Credit Life and Credit Health and Accident Coverage 348.204
Insurance Statement 348.205
Statement if Liability Insurance Not Included in Contract 348.206
Insurance May Be Furnished by Buyer 348.207
Buyer’s Failure to Provide Evidence of Insurance 348.208
Charges for Other Insurance and Forms of Protection Included in Retail Installment Contract 348.209
Requirements for Including Insurance Cost in Contract 348.210
Delivery of Insurance Document to Buyer 348.211
Holder’s Duty if Insurance Is Adjusted or Terminated 348.212
Gain or Advantage from Insurance Not Additional Charge 348.213
Adding to Retail Installment Contract Premiums for Insurance Acquired After Transaction 348.214
Effect of Adding Premium to Contract 348.215
Financing Entity May Not Require Insurance from Particular Source 348.301
Authority to Acquire 348.302
Lack of Notice Does Not Affect Validity as to Certain Creditors 348.303
Payment by Buyer 348.403
Seller’s Promise to Pay or Tender of Cash to Buyer as Part of Transaction 348.404
Seller’s Action for Incentive Program or to Pay for Buyer’s Motor Vehicle 348.405
Statement of Payments and Amount Due Under Contract 348.406
Receipt for Cash Payment 348.407
Retention or Disposition of Nonattached Personal Property 348.408
Outstanding Balance Information 348.409
Liability Relating to Outstanding Balance Information 348.410
Prohibition on Power of Attorney to Confess Judgment or Assignment of Wages 348.411
Prohibition on Certain Acts of Repossession 348.412
Buyer’s Waiver 348.413
Transfer of Equity 348.414
Automobile Club Membership Offered in Connection with Retail Installment Contract 348.501
License Required 348.502
Application Requirements 348.503
Investigation of Application 348.504
Approval or Denial of Application 348.505
Disposition of Fees on Denial of Application 348.506
License Fee 348.507
Expiration of License on Failure to Pay Fee 348.508
License Suspension or Revocation 348.509
Reinstatement of Suspended License 348.510
Surrender of License 348.511
Effect of License Suspension, Revocation, or Surrender 348.512
Transfer or Assignment of License 348.513
Adoption of Rules 348.514
Examination 348.515
General Investigation 348.516
Payment of Examination Costs and Administration Expenses 348.517
License Holder’s Records 348.518
Sharing of Information 348.1015
Contract Conditioned on Subsequent Assignment Prohibited 348.5015
Residential Mortgage Loan Originator License Required 348.5055
License Term 348.5065
Grounds for Refusal to Renew
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 348.104’s source at texas​.gov