Tex. Fin. Code Section 353.015
Conditional Delivery Agreement


(a)

In this section, “conditional delivery agreement” means a contract between a retail seller and prospective retail buyer under the terms of which the retail seller allows the prospective retail buyer the use and benefit of a commercial vehicle for a specified term.

(b)

A retail seller and prospective retail buyer may enter into a conditional delivery agreement.

(c)

A conditional delivery agreement is:

(1)

an enforceable contract; and

(2)

void on the execution of a retail installment contract between the parties to the conditional delivery agreement for the sale of the commercial vehicle that is the subject of the conditional delivery agreement.

(d)

A conditional delivery agreement may only confer rights consistent with this section and may not confer any legal or equitable rights of ownership, including ownership of the commercial vehicle that is the subject of the conditional delivery agreement.

(e)

A conditional delivery agreement may not exceed a term of 15 days.

(f)

If a prospective retail buyer tenders to a retail seller a trade-in motor vehicle in connection with a conditional delivery agreement:

(1)

the parties must agree on the value of the trade-in motor vehicle;

(2)

the conditional delivery agreement must contain the agreed value of the trade-in motor vehicle described by Subdivision (1); and

(3)

the retail seller must use reasonable care to conserve the trade-in motor vehicle while the vehicle is in the retail seller’s possession.

(g)

If the parties to a conditional delivery agreement do not subsequently enter into a retail installment contract for the sale of the commercial vehicle that is the subject of the conditional delivery agreement, the retail seller shall, not later than the seventh day after termination of the conditional delivery agreement:

(1)

deliver to the prospective retail buyer any trade-in motor vehicle that the prospective retail buyer tendered in connection with the conditional delivery agreement in the same or substantially the same condition as it was at the time of execution of the agreement and shall return any down payment or other consideration received from the prospective retail buyer in connection with the agreement; or

(2)

if the trade-in motor vehicle cannot be returned in the same or substantially the same condition as it was at the time of execution of the conditional delivery agreement, deliver to the prospective retail buyer a sum of money equal to the agreed value of the trade-in motor vehicle as described by Subsection (f) and shall return any down payment or other consideration described by Subdivision (1).

(h)

Any money that a retail seller is obligated to provide a prospective retail buyer under Subsection (g) must be tendered at the same time that the trade-in motor vehicle is delivered for return to the prospective retail buyer or when the trade-in motor vehicle would have been delivered if the vehicle was damaged or could not be returned.

(i)

If a prospective retail buyer returns a commercial vehicle under a conditional delivery agreement at the request of the retail seller, the retail seller, notwithstanding the period prescribed by Subsection (g), must return the trade-in vehicle at the same time that the commercial vehicle under the conditional delivery agreement is returned by the prospective retail buyer.

(j)

The prospective retail buyer shall return the commercial vehicle received under the conditional delivery agreement in the same or substantially the same condition as it was at the time of the execution of the conditional delivery agreement.

(k)

An amount paid or required to be paid by the retail seller under Subsection (g) is subject to review by the commissioner. If the commissioner determines that the retail seller in fact owes the prospective retail buyer a certain amount under Subsection (g), the commissioner may order the retail seller to pay the amount to the prospective retail buyer. If the trade-in motor vehicle is not returned by the retail seller in accordance with this section and the retail seller does not pay the prospective retail buyer an amount equal to the agreed value of the trade-in motor vehicle within the period prescribed by this section, the commissioner may assess an administrative penalty against the retail seller in an amount that is reasonable in relation to the value of the trade-in motor vehicle. The commissioner shall provide notice to the retail seller and the prospective retail buyer of the commissioner’s determination under this subsection.

(l)

Not later than the 30th day after the date the parties receive notice of the commissioner’s determination under Subsection (k), the retail seller or prospective retail buyer may file with the commissioner an appeal of the commissioner’s determination requesting a time and place for a hearing before a hearings officer designated by the commissioner. A hearing under this subsection is governed by Chapter 2001 (Administrative Procedure), Government Code. After the hearing, based on the findings of fact, conclusions of law, and recommendations of the hearings officer, the commissioner shall enter a final order.

(m)

A person who files an appeal under Subsection (l) is required to pay a deposit to secure the payment of the costs of the hearing in a reasonable amount as determined by the commissioner, unless the person cannot afford to pay the deposit and files an affidavit to that effect with the hearings officer in the form and content prescribed by finance commission rule. The entire deposit must be refunded to the person if the person prevails at the hearing. If the person does not prevail, any portion of the deposit in excess of the costs of the hearing assessed against the person is refundable.

(n)

Notice of the commissioner’s final order under Subsection (l), given to the person in accordance with Chapter 2001 (Administrative Procedure), Government Code, must include a statement of the person’s right to judicial review of the order.

(o)

The hearings officer may order the retail seller or the prospective retail buyer, or both, to pay reasonable expenses incurred by the commissioner in connection with obtaining a final order under Subsection (l), including attorney’s fees, investigative costs, and witness fees.

(p)

This section does not:

(1)

apply to a bailment agreement under Section 353.003 (Bailment or Lease as Retail Installment Transaction); or

(2)

create a private right of action.

(q)

Except as otherwise provided by this section, the commissioner has exclusive jurisdiction to enforce this section.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.

Source: Section 353.015 — Conditional Delivery Agreement, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­353.­htm#353.­015 (accessed Mar. 23, 2024).

353.001
Definitions
353.002
Presumption Regarding Noncommercial Vehicles
353.003
Bailment or Lease as Retail Installment Transaction
353.004
Classification as Retail Installment Transaction Unaffected
353.005
Cash Price
353.006
Itemized Charge
353.007
Additional Charges Permitted
353.008
Principal Balance
353.009
Applicability of Chapter
353.010
Applicability of Other Statutes to Retail Installment Transaction
353.011
Federal Disclosure Requirements
353.012
Additional Information Allowed in Contract
353.013
Order of Items in Contract
353.014
Applicability of Insurance Premium Financing Provisions
353.015
Conditional Delivery Agreement
353.016
Computation of Time Price Differential Using True Daily Earnings Method
353.017
Transaction Conditioned on Purchase of Vehicle Protection Product Prohibited
353.101
Retail Installment Contract General Requirements
353.102
Contract Conditioned on Subsequent Assignment Prohibited
353.103
Time Price Differential for Retail Installment Contract
353.104
Time Price Differential for Contract with Equal Monthly Successive Payments
353.105
Use of Optional Ceiling
353.106
Time Price Differential for Other Contracts
353.107
Charge for Default in Payment of Installment
353.108
Charges for Collecting Debt
353.109
Acceleration of Debt Maturity
353.110
Delivery of Copy of Contract
353.111
Buyer’s Right to Rescind Contract
353.112
Buyer’s Acknowledgment of Delivery of Contract Copy
353.113
Amendment of Retail Installment Contract
353.114
Charges for Deferring Installment
353.115
Charge for Other Amendment
353.116
Confirmation of Amendment
353.117
Contract After Amendment
353.118
Prepayment of Contract
353.119
Refund Credit on Prepayment
353.120
Amount of Refund Credit for Monthly Installment Contract
353.121
Refund on Contracts Using Scheduled Installment Earnings Method
353.122
Reinstatement of Contract After Demand for Payment
353.201
Property Insurance
353.202
Credit Life and Credit Health and Accident Insurance
353.203
Maximum Amount of Credit Life and Credit Health and Accident Coverage
353.204
Insurance Statement
353.205
Statement if Liability Insurance Not Included in Contract
353.206
Buyer’s Failure to Provide Evidence of Insurance
353.207
Charges for Other Insurance and Forms of Protection Included in Retail Installment Contract
353.208
Holder’s Duty if Insurance Is Adjusted or Terminated
353.209
Gain or Advantage from Insurance Not Additional Charge
353.210
Adding to Retail Installment Contract Premiums for Insurance Acquired After Transaction
353.211
Effect of Adding Premium to Contract
353.212
Financing Entity May Not Require Insurance from Particular Source
353.301
Authority to Acquire
353.302
Lack of Notice Does Not Affect Validity as to Certain Creditors
353.303
Payment by Buyer
353.401
Seller’s Promise to Pay or Tender of Cash to Buyer as Part of Transaction
353.402
Seller’s Action for Incentive Program or to Pay for Buyer’s Motor Vehicle
353.403
Statement of Payments and Amount Due Under Contract
353.404
Receipt for Cash Payment
353.405
Outstanding Balance Information
353.406
Liability Relating to Outstanding Balance Information
353.407
Prohibition on Power of Attorney to Confess Judgment or Assignment of Wages
353.408
Prohibition on Certain Acts of Repossession
353.409
Buyer’s Waiver
353.410
Transfer of Equity
353.501
License Required
353.502
Application Requirements
353.503
Investigation of Application
353.504
Approval or Denial of Application
353.505
Disposition of Fees on Denial of Application
353.506
License Fee
353.507
Expiration of License on Failure to Pay Fee
353.508
License Suspension or Revocation
353.509
Reinstatement of Suspended License
353.510
Surrender of License
353.511
Effect of License Suspension, Revocation, or Surrender
353.512
Transfer or Assignment of License
353.513
Adoption of Rules
353.514
General Investigation
353.515
Sharing of Information
353.5055
License Term
353.5065
Grounds for Refusal of Renewal

Accessed:
Mar. 23, 2024

§ 353.015’s source at texas​.gov