Texas Finance Code

§ 345.304 — PRESERVATION OF BUYER'S RIGHT OF ACTION OR DEFENSE

FI § 345.304Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 345. RETAIL INSTALLMENT SALES · Art. G. ACQUISITION OF CONTRACT, AGREEMENT, OR BALANCE

Statute text

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(a)A right of action or defense of a retail buyer arising out of a retail installment transaction is not affected by the negotiation of the retail installment contract or retail charge agreement to a third party except as authorized by other law and the third party:

(1)acquires the contract relying in good faith on a certificate of completion or certificate of satisfaction, if required by Section 345.081;

(2)gives notice of the negotiation to the buyer under Subsection (b); and

(3)does not receive from the buyer, before the 31st day after the day on which that notice is mailed, written notice of a fact that gives rise to a claim or defense of the buyer.

(b)A notice of negotiation must:

(1)be in writing addressed to the retail buyer at the address shown on the contract;

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Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.