{"data":{"id":"us-tx/tex.-finance-code-397.004","jurisdiction":"us-tx","citation":"Tex. Finance Code § 397.004","heading":"LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS.","body":"(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.\n(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.\n(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.\nAdded by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 7, eff. September 1, 2017.","path":["FINANCE CODE","TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES","CHAPTER 397. DEBT CANCELLATION AGREEMENTS FOR CERTAIN VEHICLE LEASES"],"source_url":"https://statutes.capitol.texas.gov/Docs/FI/htm/FI.397.htm#397.004","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:13Z","sha256":"3995307ef228c86871109c688c81daef93161c50cd0e35f0969dbe16cb62c21d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-finance-code-397.003","next":"us-tx/tex.-finance-code-397.005"},"notice":"GroundRules: Original legal text. Not legal advice."}