The Texas Finance Commission (“Commission”) published in the August 25, 2006 issue of the Texas Register (Vol. 31, No. 34) an extensive relocation and reorganization of administrative rules and model forms for secured and unsecured loans subject to Chapter 342 of the Texas Finance Code. The material published by the Commission in the above issue of the Texas Register is too voluminous to restate in full in this memo, but you may access this information on line from the Texas Register website, at http://www.sos.state.tx.us/texreg/archive/index.shtml. These reorganized and amended rules became effective August 31, 2006, and may require licensees to amend their plain language documents consistent with the amended rules and forms. Those licensees utilizing the existing model contracts (i.e. – notes and security documents) are permitted to use the prior model language (without a non-standard contract submission) until September 15, 2007 to deplete supplies of existing forms during a transition period after August 31, 2006. As stated in my previous memorandums on this subject, the plain language models forms and rules apply only to those lenders licensed under Chapter 342 of the Texas Finance Code. Lenders exempt from Chapter 342 licensing are also exempt from the requirements of the plain language rules and the requirement to use either the model forms or non-standard plain language forms submitted to the Office of Consumer Credit Commissioner prior to use of the non-standard forms. Also published in the August 25, 2006 issue of the Texas Register is the Commission’s reorganization and relocation of the administrative rules and model forms for non-real property installment loans (7 TAC Chapter 90, Subchapter B, §§90.201 – 90.204), signature loans (7 TAC Chapter 90, Subchapter C, §§90.301 – 90.304), and secondary mortgage home improvement loans (7 TAC Chapter 90, Subchapter F, §§90.601 – 90.604) which are not addressed in this memorandum.