(a) If a consumer does not pay a tax that has been assessed against the manufactured home, the creditor may treat the failure as a default or may:
(1) pay to the appropriate taxing authority the unpaid tax and any interest or other charge due; and
(2) add to the unpaid balance of the credit transaction the amounts paid to the taxing authority and interest, at the interest rate or time price differential applicable to the transaction on the date payment is made.
(b) If the creditor pays a tax under this section, the creditor shall notify the consumer that:
(1) the tax and interest or other charges have been paid, as appropriate; and
(2) those amounts have been added to the unpaid balance of the credit transaction.

Terms Used In Texas Finance Code 347.256

  • Consumer: means a person to whom credit is extended in a credit transaction. See Texas Finance Code 347.002
  • Credit transaction: means :
    (A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
    (i) subject to a finance charge; or
    (ii) payable in more than four installments, not including a down payment; and
    (B) a lease or bailment described by § 347. See Texas Finance Code 347.002
  • Creditor: means a:
    (A) person who extends credit or arranges for the extension of credit in a credit transaction; or
    (B) retailer or broker, as defined by § 1201. See Texas Finance Code 347.002
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Manufactured home: has the meaning assigned by § 1201. See Texas Finance Code 347.002

(c) The creditor may determine the period and number of installments in which the consumer is required to pay the amounts added to the unpaid balance, including payment of the entire amount on the date of the last installment, payment in equal increments added to each of the remaining installments, or payment in a lesser number of installments or unequal increments.

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