Texas Finance Code

§ 342.410 — PAYMENT FOR INSURANCE FROM LOAN PROCEEDS

FI § 342.410Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 342. CONSUMER LOANS · Art. I. INSURANCE

Statute text

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A lender, including an officer, agent, or employee of the lender, who accepts insurance under this subchapter as protection for a loan:

(1)may deduct the premium or identifiable charge for the insurance from the proceeds of the loan; and

(2)shall pay the deducted amounts to the insurance company writing the insurance.

Legislative history

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.