Texas Finance Code

§ 307.052 — CREDITOR DUTIES

FI § 307.052Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 307. COLLATERAL PROTECTION INSURANCE · Art. B. REQUIREMENTS FOR COLLATERAL PROTECTION INSURANCE

Statute text

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(a)A creditor who requires collateral protection insurance that is paid for directly or indirectly by a debtor may place collateral protection insurance if:

(1)the debtor has entered into a credit transaction with the creditor for which a credit agreement exists;

(2)the credit agreement requires the debtor to maintain insurance on the collateral; and

(3)a notice has been included in the credit agreement or a separate document provided to the debtor at the time the credit agreement is executed that states that:

(A)the debtor is required to:

(i)keep the collateral insured against damage in the amount the creditor specifies;

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Legislative history

Added by Acts 2001, 77th Leg., ch. 726, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1219, Sec. 2, eff. June 20, 2003.