Texas Finance Code 348.408 – Outstanding Balance Information; Payment in Full
Current as of: 2024 | Check for updates
|
Other versions
(a) The holder of a retail installment contract who gives the retail buyer or the buyer’s designee outstanding balance information relating to the contract is bound by that information and shall honor that information for a reasonable time.
(b) If the retail buyer or the buyer’s designee tenders to the holder as payment in full an amount derived from that outstanding balance information, the holder shall:
(1) accept the amount as payment in full; and
(2) release the holder’s lien against the motor vehicle within a reasonable time not later than the 10th day after the date on which the amount is tendered.
Terms Used In Texas Finance Code 348.408
- Contract: A legal written agreement that becomes binding when signed.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
(c) A retail seller must pay in full the outstanding balance of a vehicle traded in not later than the 25th day after the date that:
(1) the retail installment contract is signed by the retail buyer and the retail buyer receives delivery of the motor vehicle; and
(2) the retail seller receives delivery of the motor vehicle traded in and the necessary and appropriate documents to transfer title from the buyer.