Texas Finance Code 354.001 – Definitions
Terms Used In Texas Finance Code 354.001
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
In this chapter:
(1) “Contract” means a retail installment contract made under Chapter 345 or 348.
(2) “Covered vehicle” includes a self-propelled or towed vehicle designed for personal use, including an automobile, truck, motorcycle, recreational vehicle, all-terrain vehicle, snowmobile, camper, boat, personal watercraft, and personal watercraft trailer.
(3) “Debt cancellation agreement” means a contract term or a contractual arrangement modifying a contract term under which a retail seller or holder agrees to cancel all or part of an obligation of the retail buyer to repay an extension of credit from the retail seller or holder on the occurrence of the total loss or theft of the covered vehicle that is the subject of the contract but does not include an offer to pay a specified amount on the total loss or theft of the covered vehicle.
(4) “Holder” means a person who is:
(A) a retail seller; or
(B) the assignee or transferee of a contract.
(5) “Retail buyer” means a person who purchases or agrees to purchase a covered vehicle from a retail seller in a retail installment transaction.
(6) “Retail seller” means a person in the business of selling covered vehicles to retail buyers in retail installment transactions.