Texas Finance Code

§ 347.203 — CONSUMER'S FAILURE TO OBTAIN REQUIRED INSURANCE

FI § 347.203Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 347. MANUFACTURED HOME CREDIT TRANSACTIONS · Art. E. INSURANCE

Statute text

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(a)If at any time the consumer fails to obtain the required insurance, the creditor may:

(1)treat the failure as a default; or

(2)purchase the required insurance and add to the unpaid balance of the credit transaction the premium of the insurance and interest, at the interest rate or time price differential applicable to the transaction on the date the insurance is purchased.

(b)The insurance purchased under Subsection (a) may be in an amount up to but not in excess of the prepayment amount under Section 347.155 if the balance were prepaid on the date that the insurance is purchased.

(c)If insurance is purchased under Subsection (a), the creditor shall notify the consumer that:

(1)the insurance has been purchased under this section; and

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Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.