Texas § FI.342.4021 - AGREEMENTS REGARDING DEBT SUSPENSION, DEBT CANCELLATION, AND GAP WAIVER

§ FI.342.4021. AGREEMENTS REGARDING DEBT SUSPENSION, DEBT CANCELLATION, AND GAP WAIVER

AGREEMENTS REGARDING DEBT SUSPENSION, DEBT CANCELLATION, AND GAP WAIVER. (a) In connection with a loan made under this chapter that is subject to Section 342.201 (d) or 342.301 (c), a lender may offer to the borrower a debt suspension agreement or debt cancellation agreement under similar terms and conditions as such an agreement may be offered by a bank or savings association. (b) In connection with a loan made under this chapter that is subject to Section 342.201 (d) and that is secured by a motor vehicle, a lender may offer to the borrower at the time the loan is made a gap waiver agreement. (c) A lender may not require that a borrower accept or provide an agreement or contract under Subsection (a) or (b). (d) In addition to other disclosures required by state or federal law and before offering an agreement or contract authorized by this section, the lender shall provide to the borrower a notice separate from the loan documents stating that the borrower is not required to accept or provide the agreement or contract to obtain the loan. (e) The amount charged for a product authorized by Subsection (a) or (b) must be reasonable. Added by Acts 2003, 78th Leg., ch. 1265, Sec. 2, eff. June 20, 2003.