Texas § 397.004 LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.

Texas Statutes

§ 397.004 — LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.

Texas § 397.004

Code FIFinance Code

This text of Texas § 397.004 (LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 397.004 (2026).

Text

Sec. 397.004. LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.

(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.

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Sec. 397.004. LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS. (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.