Sec. 549.003. CANCELLATION OF POLICY AFTER FORECLOSURE AUTHORIZED. In the event of a foreclosure under a deed of trust, the lender may cancel an insurance policy covering the foreclosed property and is entitled to any unearned premiums from the policy if the lender:
(1) credits the amount of the unearned premiums against any deficiency owed by the borrower; and
(2) delivers to the borrower any excess unearned premiums not credited against a deficiency under Subdivision (1).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Structure Texas Statutes
Title 5 - Protection of Consumer Interests
Subtitle C - Deceptive, Unfair, and Prohibited Practices
Chapter 549 - Prohibited Practices Relating to Property Insurance
Subchapter A. General Provisions
Section 549.002. Inapplicability of Chapter to Title Insurance
Section 549.003. Cancellation of Policy After Foreclosure Authorized