Tex. Fin. Code § 349.202 · Subchapter C. LIMITING LIABILITY BY CORRECTING VIOLATION
CORRECTION OF VIOLATION OF FAILURE TO ACT OR PERFORMING PROHIBITED ACT RESULTING IN LIMITED LIABILITY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Liability to an obligor for a violation of this subtitle to which Section 349.003 applies is limited as provided by this section if, after the 60-day period described by Section 349.201(a)(1) but before the time the obligor gives written notice of that violation or files an action alleging that violation, the violation is corrected as to that obligor by:
(1) the performance of the required act; and
(2) giving to the obligor written notice of the violation as provided by Section 349.204.
(b) The liability of any person for the violation to the obligor as described by Subsection (a) is limited for each transaction to an amount that does not exceed one, but not both, of the following:
(1) the actual economic loss suffered by the obligor as a result of the violation; or
(2) the time price differential or interest contracted for, charged, or received, not to exceed $2,000, if:
(A) the violation was material; and
(B) the violation induced the obligor to enter into a transaction that the obligor would not have entered if the violation had not occurred.
(c) A person who is liable under Subsection (b) is also liable for reasonable attorney's fees set by the court.
(d) In a judicial proceeding under Subsection (b)(2), the court determines whether the violation is material and the finder of fact determines whether the violation induced the obligor to enter into the transaction.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.349.htm
- Text hash
- sha256 25dc617e755c64fd23e62f36326a511ea5550c21adc48ad01ff094f3fd3b82c7
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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