Texas § FI.398.051 - DISCLOSURES

§ FI.398.051. DISCLOSURES

DISCLOSURES. (a) If a provider extends a specific offer of commercial sales-based financing of less than $1 million to a recipient in this state, the provider shall disclose to the recipient: (1) the total amount of the financing; (2) the disbursement amount; (3) the finance charge; (4) the total repayment amount; (5) the estimated period for the periodic payments to equal the total repayment amount under the terms of the financing; (6) the payment amounts as follows: (A) if the payment amounts are fixed, the amounts and the frequency of payments; or (B) if the payment amounts are variable: (i) a payment schedule or a description of the method used to calculate the amounts and frequency of payments; and (ii) the amount of the average projected payments per month; (7) a description of all other potential fees and charges not included in the finance charge, including draw fees, late payment fees, and returned payment fees; (8) any finance charge the recipient will be required to pay if the recipient pays off or refinances the commercial sales-based financing before the transaction is scheduled to be repaid in full; (9) any additional fees, not included in the finance charge, the recipient will be required to pay if the recipient pays off or refinances the commercial sales-based financing before the transaction is scheduled to be repaid in full; (10) a description of collateral requirements or security interests, if applicable; and (11) a statement outlining whether the provider will pay compensation directly to a commercial sales-based financing broker in connection with the specific offer of sales-based financing and, if applicable, the amount of the compensation. (b) If, as a condition of obtaining commercial sales-based financing, the provider requires the recipient to pay off the outstanding balance of an existing commercial sales-based financing, the provider shall disclose to the recipient: (1) the amount of the new commercial sales-based financing used to pay off the portion of the outstanding balance of the existing commercial sales-based financing that consists of: (A) prepayment charges required to be paid; and (B) any unpaid interest expense or finance charges that were not forgiven at the time of renewal of the transaction; and (2) if the disbursement amount will be reduced to pay down any unpaid portion of the outstanding balance, the actual dollar amount by which the disbursement amount will be reduced. Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700 ), Sec. 1, eff. September 1, 2025.