1. (a) A licensed lender may consider making the following types of changes to the second lien home equity loans plain language model clauses:

   1. (1) Adding information related to information set forth in the model clauses that is not otherwise prohibited by law;
   2. (2) Substituting another term for "Lender" or "Borrower" that has the same meaning, or using pronouns such as "you," "we," and "us";
   3. (3) Presenting the model clauses in any order, and combining or further segregating the model clauses;
   4. (4) Inserting descriptive headings or number provisions;
   5. (5) Changing the case of a word if otherwise permitted by the Texas Finance Code; or
   6. (6) Making other changes which do not affect the substance of the disclosures.
   7. (7) A sample model note is presented in the following example.
      Attached Graphic
      
   8. (8) A sample model security document is presented in the following example.
      Attached Graphic
      
2. (b) An authorized licensee has considerable flexibility to arrange the format of the model form if the revised format does not significantly adversely affect the substance, clarity, or meaningful sequence of the disclosures.

Source Note:The provisions of this §90.404 adopted to be effective August 31, 2006, 31 TexReg 6680; amended to be effective March 15, 2007, 32 TexReg 1233; amended to be effective September 6, 2007, 32 TexReg 5665.