A Texas Finance Code, Chapter 348 motor vehicle installment sales contract may include the following contract provisions to the extent not prohibited by law or regulation. If the seller desires to assess certain charges or exercise certain rights under one of the following provisions, except provisions relating to default, repossessions, acceleration, and assignment of the contract, the seller must include the provision in the contract. A seller may delete inapplicable provisions. A seller who does not desire to apply a provision is not required to include it in the contract. For example, the seller may omit the balloon payment provisions if there is no balloon payment. A seller may also exclude non-relevant portions of a model clause. For example, a seller who does not routinely finance certain insurance coverages may omit those non-applicable portions of the model clause. A Texas Finance Code, Chapter 348 motor vehicle installment sales contract may contain the following provisions:
  (1) Identification of the parties, including the name and address of each party and specifying the pronouns that designate the buyer and the seller;
  (2) An assignment of contract provision;
  (3) A buyer's affirmation and promise to pay provision;
  (4) An inspection acknowledgment provision;
  (5) An identification of the motor vehicle;
  (6) A description of the trade-in vehicle;
  (7) A Truth in Lending Act (TILA) disclosure box;
  (8) An itemization of amount financed box;
  (9) A documentary fee notice provision;
  (10) A deferred downpayments provision;
  (11) A required physical damage insurance provision;
  (12) Optional insurance coverages and debt cancellation agreement provision;
  (13) Optional credit life and accident and health insurance provision;
  (14) A liability insurance provision;
  (15) A provision prohibiting oral modification of the contract;
  (16) A provision stating the finance charge earnings method;
  (17) A consumer warning provision;
  (18) A buyer's acknowledgment of receipt of the retail installment contract as permitted under Texas Finance Code, §348.112;
  (19) OCCC notice;
  (20) A provision stating the finance charge refund method;
  (21) A provision describing the application of payments;
  (22) A provision describing the effect of early and late payments;
  (23) A provision providing for interest on any matured amount at any rate permitted by law;
  (24) Balloon payment provisions;
  (25) An agreement to keep the motor vehicle insured;
  (26) An agreement authorizing the creditor to purchase required insurance if the buyer fails to keep the motor vehicle insured;
  (27) Physical damage insurance proceeds provision;
  (28) Returned insurance premiums and service contract charges provision;
  (29) An application of credits provision;
  (30) A transfer of rights provision;
  (31) An agreement granting a security interest in collateral;
  (32) Agreements regarding the use and transfer of the motor vehicle, including prohibiting unauthorized transfer and transfer of equity fee limitations;
  (33) Agreements regarding the care of the motor vehicle, which may include: keeping the motor vehicle in good working order and repair; keeping the vehicle free from liens and encumbrances; not exposing the motor vehicle to seizure, confiscation, or other involuntary transfer; and repaying the creditor for any amounts paid to satisfy liens or encumbrances;
  (34) Default rights and repossession provisions, including consequences of default, collection costs, late charges, buyer's right to redeem, disposition of the motor vehicle, cancellation of optional contracts, and acceleration;
  (35) A waiver of any right to receive notice of the intent to accelerate or notice of acceleration;
  (36) A provision describing a refund of unearned finance charge upon acceleration;
  (37) An integration provision and severability clause;
  (38) Provision expressing no waiver and limitations on creditor's rights and usury savings clause;
  (39) A provision stating Texas law and federal law will apply to the contract;
  (40) Disclaimer of express or implied warranties;
  (41) Preservation of consumers' claims and defenses provision;
  (42) Used car buyer's guide provision;
  (43) A guarantee provision;
  (44) An arbitration provision; and
  (45) A negotiation and assignment provision.

Source Note: The provisions of this §84.807 adopted to be effective May 8, 2008, 33 TexReg 3584; amended to be effective November 5, 2009, 34 TexReg 7610; amended to be effective November 5, 2015, 40 TexReg 7623