Section 84.802 - Non-Standard Contract Filing Procedures(a) Non-standard contracts. A non-standard contract is a contract that uses clauses other than the model contract provisions. Before a licensee uses a non-standard contract, the contract must be submitted to the OCCC for review under Texas Finance Code, § 341.502(c). A non-standard contract:(1) must be written in plain language designed to be easily understood by the average consumer, as required by Texas Finance Code, § 341.502(a); (2) must be printed in an easily readable font and type size, as required by Texas Finance Code, § 341.502(a) and § 84.806 of this title (relating to Format); (3) must be consistent with Texas law and federal law; (4) must include a notice with the OCCC's contact information, as required by Texas Finance Code, § 14.104 and § 86.101 of this title (relating to Consumer Notifications); (5) must comply with the requirements described in subsection (c) of this section, including the maximum Flesch-Kincaid Grade Level score; and (6) must be accompanied by a complete submission form containing the information required by subsection (d) of this section.(b) Disapproval. If a non-standard contract filing fails to comply with one or more of the requirements listed in subsection (a) of this section, then the OCCC may disapprove the filing under Texas Finance Code, § 341.502(c). A licensee must cease using a disapproved contract immediately after an order of disapproval takes effect, as provided by Texas Finance Code, § 341.502(d).(c) Contract filing requirements. Copies of the retail installment sales contract must be submitted in accordance with the OCCC's instructions and the following requirements: (1) Microsoft Word format. One copy must be submitted in a Microsoft Word format with the document having either a.doc or.docx extension. The Flesch-Kincaid Grade Level score of the contract must be based on the Microsoft Word readability statistics function for the Microsoft Word version of the contract.(2) PDF format. One copy must be submitted in a text-searchable PDF format so that the contract may be visually reviewed in its entirety. The page size must be 8.5 inches by 11 inches or 8.5 inches by 14 inches. The PDF may not be locked or restricted in a way that prohibits comparison of different versions of the contract.(3) No other formats permitted. The OCCC will not accept paper filings or any other unlisted formats for non-standard contract filings.(4) Maximum Flesch-Kincaid score. The maximum Flesch-Kincaid Grade Level score for a Chapter 348 contact filing is grade 11.(d) Submission form. A non-standard contract must be accompanied by a written submission form prescribed by the OCCC. The submission form must be completed in accordance with the OCCC's instructions and the following requirements: (1) Transaction chapter. The submission form must specify that the contract will be used under Texas Finance Code, Chapter 348. (2) Contact person. The submission form must identify an individual as the contact person for the contract filing, and must include the individual's name, address, phone number, and email address. If a contract is submitted by a person other than a licensee, then the contract must be accompanied by a dated letter that contains a description of the anticipated users of the contract, and designates the legal counsel or other designated contact person for that filing. (3) Certification of readability. The submission form must include a certification signed by an officer of the licensee or the entity submitting the form on behalf of the licensee. The certification must state that the contract is written in plain language and that the contract can be easily understood by the average consumer. The certification must also state that the contract is printed in an easily readable font and type size, including a list of the typefaces used in the contract, the font sizes used in the contract, and the Flesch-Kincaid Grade Level score of the contract. The OCCC will prescribe the form of the certification.(e) Commercial vehicle. Pursuant to Texas Finance Code, § RSA 341.502(a), a motor vehicle retail installment sales contract involving a commercial vehicle does not have to be submitted in accordance with this section.7 Tex. Admin. Code § 84.802
The provisions of this §84.802 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 8, 2012, 37 TexReg 8780; Amended by Texas Register, Volume 40, Number 44, October 30, 2015, TexReg 7627, eff. 11/5/2015; Amended by Texas Register, Volume 45, Number 52, December 25, 2020, TexReg 9418, eff. 12/31/2020; Amended by Texas Register, Volume 49, Number 45, November 8, 2024, TexReg 8873, eff. 11/14/2024