Tex. Fin. Code § 397.004 · Chapter 397. DEBT CANCELLATION AGREEMENTS FOR CERTAIN VEHICLE LEASES
LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Added by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 7, eff. September 1, 2017.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.397.htm
- Text hash
- sha256 50d988a53c150af4e5ed5d42fce63a80dd6fe2b9abae3331468dc3cb40388d91
- 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
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.