June 23, 2026
On June 19, 2026, the Texas Office of Consumer Credit Commissioner approved final regulations on commercial sales-based financing transactions to implement House Bill 700. The regulations are effective on July 9, 2026, although registration is not required until December 31, 2026.
H.B. 700 regulates sales-based financing transactions and requires providers and brokers of sales-based financing transactions to register with the OCCC. The law went into effect on September 1, 2025, but there remained unanswered questions about the meaning of certain provisions. The new regulations clarify that a sales-based financing provider may automatically debit a customer bank account only if the provider has a validly perfected, first-priority security interest in all of the customer's accounts receivable. In addition, the regulations prohibit "direct[ing] a third party to complete a debit" and "accept[ing] payment of a debit" in violation of the law.
The final regulations define "automatic" debits as debits authorized in advance to occur more than one time or on a recurring basis. This includes a situation in which a customer provides more than one prewritten check to a sales-based financing provider in advance.
Prior Alerts:
Texas OCCC Will Hold Webinar on Rulemaking Implementing H.B. 700
Texas Governor Signs H.B. 700
Texas House Passes Bill That Effectively Bans Sales-Based Financing Transactions; Bill Goes to Governor's Desk
Texas Senate Passes Sales-Based Financing Bill with a Proposed Ban on Most ACH Debits; Bill Heads Back to House