Sec. 342.416. NONFILING INSURANCE. (a) Instead of charging fees for the filing, recording, and releasing of a document securing a loan to which Subchapter E applies, an authorized lender may include in the loan contract a charge for a nonfiling insurance premium.
(b) The amount of a charge under Subsection (a) may not exceed the amount of fees authorized for filing and recording an original financing statement in the standard form prescribed by the secretary of state.
(c) A lender may receive an amount authorized under this section only if the lender purchases nonfiling insurance in connection with the loan contract.
(d) A lender is not required to furnish to a borrower a policy or certificate of insurance evidencing nonfiling insurance.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Subtitle B - Loans and Financed Transactions
Section 342.401. Required Property Insurance
Section 342.4021. Agreements Regarding Debt Suspension, Debt Cancellation, and Gap Waiver
Section 342.403. Maximum Amount of Insurance Coverage
Section 342.404. Insurance Notice
Section 342.405. Insurance May Be Furnished by Borrower
Section 342.406. Borrower's Failure to Provide Required Insurance
Section 342.407. Requirements for Including Insurance Charge in Contract
Section 342.408. Furnishing of Insurance Document to Borrower
Section 342.409. Lender's Duty if Insurance Is Adjusted or Terminated
Section 342.410. Payment for Insurance From Loan Proceeds
Section 342.411. Insurance or Other Gain Not Interest
Section 342.412. Action Under Subchapter Not Sale of Insurance
Section 342.413. Required Agent or Broker Prohibited
Section 342.414. Declination of Equal Insurance Coverage Prohibited