MOTOR VEHICLE ADVISORY BULLETIN
Standard Disclosure of Equity Form
Earlier this year, the Texas Legislature passed a new law (HB 2438) requiring disclosure of negative equity in trade-in motor vehicles. The law also requires the Texas Finance Commission to adopt a rule containing a standard form for the disclosure of equity. The Commission has voted to adopt the new rule. On January 7, 2010, the adoption will become effective.
Starting March 1, 2010, retail sellers must use the standard form. Between now and March 1, sellers may use the standard form, but they are not required to do so.
We encourage sellers to begin using the standard form as soon as possible. This will help sellers ensure that they are complying with the new law.
