Sec. 557.002. NOTIFICATION BY LENDER TO INSURED CONCERNING INSURANCE PROCEEDS. (a) If a claim under an insurance policy for damage to residential real property is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment pending completion of all or part of the repairs to the property, the lender shall notify the insured of each requirement with which the insured must comply for the lender to release the insurance proceeds.
(b) The notice required under this section must be provided not later than the 10th day after the date the lender receives payment of the insurance proceeds.
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 557 - Insured Property Subject to Security Interest
Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property
Section 557.002. Notification by Lender to Insured Concerning Insurance Proceeds
Section 557.003. Lender's Release or Refusal to Release Insurance Proceeds
Section 557.004. Payment of Interest; Rate
Section 557.005. Accrual of Interest
Section 557.006. Interest Not Required on Insurance Proceeds Applied to Reduce Note