A Chapter 342, Subchapter F contract may include, but is not limited to, the following contract provisions to the extent not prohibited by law or regulation. If the licensee desires to exercise its rights under one of the following provisions, it must include the provision in the contract. A licensee who does not desire to apply a provision is not required to include it in the contract. For example, if a licensee does not take a security interest in the borrower's personal property, the provisions addressing security interests are not required. A Chapter 342, Subchapter F contract may contain the following provisions.
  (1) Identification of the parties, including the name and address of each party;
  (2) A Truth in Lending Act disclosure box;
  (3) A definitions section specifying the pronouns that designate the borrower and the lender;
  (4) A promise to pay;
  (5) A late charge provision;
  (6) A provision for after maturity interest;
  (7) A provision specifying that prepayment is permitted;
  (8) A provision specifying the finance charge earnings and refund method;
  (9) A provision authorizing deferments;
  (10) A provision specifying the conditions causing default;
  (11) A waiver of notice of intent to accelerate and waiver of notice of acceleration;
  (12) A provision contracting for a fee for a dishonored check;
  (13) A signature block;
  (14) A security agreement including provisions addressing:
    (A) a statement that the collateral is free from encumbrances;
    (B) the location and restrictions on movement or transfer of the collateral; and
    (C) a statement that the borrower will appropriately maintain and use the collateral;
  (15) A provision regarding the mailing of notices to the borrower;
  (16) Statement of truthful information;
  (17) A provision expressing no waiver of the lender's rights;
  (18) A clause stating that all modifications to the contract must be in writing;
  (19) A provision stating Texas law and federal law will apply to the contract;
  (20) A clause providing for joint liability;
  (21) A usury savings clause;
  (22) A credit reporting clause;
  (23) OCCC notice;
  (24) An arbitration agreement; and
  (25) A savings clause stating that if any part of the contract is invalid, all other parts remain valid.

Source Note: The provisions of this §90.302 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