Texas Finance Code

§ 347.003 — BAILMENT OR LEASE AS CREDIT TRANSACTION

FI § 347.003Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 347. MANUFACTURED HOME CREDIT TRANSACTIONS · Art. A. GENERAL PROVISIONS

Statute text

View on source

(a)A bailment or lease of a manufactured home is a credit transaction if the bailee or lessee:

(1)agrees to pay as compensation for use of the manufactured home an amount that is substantially equal to or that exceeds the aggregate value of the property and services involved; and

(2)on compliance with the agreement becomes the owner of the manufactured home or has the option to become the owner of the manufactured home, for nominal or no additional consideration.

(b)A bailment or lease that the bailee or lessee may terminate at any time without penalty is not a credit transaction.

Legislative history

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