Texas Finance Code

§ 354.003 — DEBT CANCELLATION AGREEMENTS EXCLUSION LANGUAGE

FI § 354.003Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 354. DEBT CANCELLATION AGREEMENTS FOR CERTAIN RETAIL VEHICLE INSTALLMENT SALES

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(a)In addition to the provisions required by Section 354.004, a debt cancellation agreement must fully disclose all provisions permitting the exclusion of loss or damage including, if applicable:

(1)an act occurring after the original maturity date or date of the holder's acceleration of the contract;

(2)any dishonest, fraudulent, illegal, or intentional act of any authorized driver that directly results in the total loss of the covered vehicle;

(3)any act of gross negligence by an authorized driver that directly results in the total loss of the covered vehicle;

(4)conversion, embezzlement, or concealment by any person in lawful possession of the covered vehicle;

(5)lawful confiscation by an authorized public official;

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