Tex. Finance Code § 397.004
This is the official text of Tex. Finance Code § 397.004, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 397.004. LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.
Official statutory text
(a) This chapter applies only to a debt cancellation agreement, including a gap waiver agreement or other similarly named agreement, that includes insurance coverage as part of the lessee's responsibility to the holder.
(b) The amount charged for a debt cancellation agreement made in connection with a lease may not exceed five percent of the adjusted capitalized cost financed pursuant to the lease.
(c) The debt cancellation agreement becomes a part of or a separate addendum to the lease and remains a term of the lease on the assignment, sale, or transfer by the holder.
(b) The amount charged for a debt cancellation agreement made in connection with a lease may not exceed five percent of the adjusted capitalized cost financed pursuant to the lease.
(c) The debt cancellation agreement becomes a part of or a separate addendum to the lease and remains a term of the lease on the assignment, sale, or transfer by the holder.
Status: in_force · Read it on the official government site
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