Tex. Occ. Code § 2301.459 · Subchapter J. MANUFACTURERS, DISTRIBUTORS, AND REPRESENTATIVES
PROHIBITION: USE OF PROMISSORY NOTE, SECURITY AGREEMENT, OR INSURANCE POLICY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not require or attempt to require that a franchised dealer assign to or act as an agent for a manufacturer, distributor, or representative to secure:
(1) a promissory note or security agreement given in connection with the sale or purchase of a new motor vehicle; or
(2) an insurance policy on or having to do with the operation of a vehicle that is sold.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2301.htm
- Text hash
- sha256 f69008489d9f29828584fe92c1de58e2d1700cf49bc482c4930000866680622d
- 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.