7 TAC § 90.204. Model Contracts; Permissible Changes

(a) A licensee may consider making the following types of changes to the secured consumer installment loans plain language model clauses:

(1) Adding information related to information set forth in the model clauses that is not otherwise prohibited by law;

(2) Substituting another term for "Lender" or "Borrower" that has the same meaning, or using pronouns such as "you," "we," and "us";

(3) Presenting the model clauses in any order, and combining or further segregating the model clauses;

(4) Inserting descriptive headings or number provisions;

(5) Changing the case of a word if otherwise permitted by the Texas Finance Code; or

(6) Making other changes that do not affect the substance of the disclosures.

(7) A sample model contract using the scheduled installment earnings method is presented in the following example.

Attached Graphic

(8) A sample model contract using the true daily earnings method is presented in the following example.

Attached Graphic

(9) A sample model security agreement is presented in the following example.

Attached Graphic

(b) A licensee has considerable flexibility to arrange the format of the model form if the revised format does not significantly adversely affect the substance, clarity, or meaningful sequence of the disclosures.