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(a) This chapter applies only to a debt cancellation agreement, including a gap waiver agreement or other similarly named agreement, that includes insurance coverage as part of the lessee's responsibility to the holder.
(b) The amount charged for a debt cancellation agreement made in connection with a lease may not exceed five percent of the adjusted capitalized cost financed pursuant to the lease.
(c) The debt cancellation agreement becomes a part of or a separate addendum to the lease and remains a term of the lease on the assignment, sale, or transfer by the holder.
Cite this article: FindLaw.com - Texas Finance Code - FIN § 397.004. Limitation on Certain Debt Cancellation Agreements - last updated April 14, 2021 | https://codes.findlaw.com/tx/finance-code/fin-sect-397-004/
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