Sec. 397.004. LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS. (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.
Added by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 7, eff. September 1, 2017.
Structure Texas Statutes
Title 5 - Protection of Consumers of Financial Services
Chapter 397 - Debt Cancellation Agreements for Certain Vehicle Leases
Section 397.002. Applicability
Section 397.003. Relationship to Insurance
Section 397.004. Limitation on Certain Debt Cancellation Agreements
Section 397.005. Debt Cancellation Agreements Exclusion Language
Section 397.006. Required Debt Cancellation Agreement Language
Section 397.007. Additional Requirements for Debt Cancellation Agreements