{"data":{"id":"us-tx/tex.-occupations-code-2352.053","jurisdiction":"us-tx","citation":"Tex. Occupations Code § 2352.053","heading":"TERMINATION OR NONRENEWAL OF AGREEMENT; NOTICE.","body":"(a) Except as provided by Subsection (d), a manufacturer or distributor may not terminate an agreement unless the dealer defaults under Section 2352.0523 and:\n(1) the manufacturer or distributor gives the dealer written notice of the default and possible termination in clear and concise terms;\n(2) the notice states the default;\n(3) the dealer has been given the applicable cure period to make a good faith effort to cure the default stated in the notice; and\n(4) the dealer fails to cure the default.\n(b) Good cause is not required for the nonrenewal of an agreement.\n(c) The fact that a dealer holds an agreement involving another line, make, or brand of new boat or new boat motor does not constitute a default or grounds for termination of an agreement.\n(d) A manufacturer or distributor may terminate an agreement on written notice, without a cure period, if the dealer:\n(1) financially defaults to the manufacturer, the distributor, or a financing source;\n(2) becomes subject to an order for relief, as that term is used in Title 11, United States Code;\n(3) engages in an act of material fraud relating to the performance of a right or obligation under the agreement;\n(4) is a corporation that ceases to exist;\n(5) becomes insolvent or takes or fails to take any action that constitutes an admission of inability to pay debts as the debts mature;\n(6) makes a general assignment for the benefit of creditors to an agent authorized to liquidate any substantial amount of assets;\n(7) applies to a court for the appointment of a receiver for any assets or properties;\n(8) fails to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or\n(9) receives three valid notices of a default under Section 2352.0523 for the same default, whether cured or not, within a 12-month period.\nAdded by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.\nAmended by:\nActs 2011, 82nd Leg., R.S., Ch. 1148 (H.B. 1960), Sec. 5, eff. September 1, 2011.","path":["OCCUPATIONS CODE","TITLE 14. REGULATION OF MOTOR VEHICLES AND TRANSPORTATION","SUBTITLE B. REGULATIONS RELATED TO VESSELS","CHAPTER 2352. BOAT MANUFACTURERS, DISTRIBUTORS, AND DEALERS","SUBCHAPTER B. DEALER AGREEMENTS"],"source_url":"https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2352.htm#2352.053","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:31Z","sha256":"bd5b5784db3abfd129618b9d47cb103c593990ca6baa887ede826b528f2f42cf","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-occupations-code-2352.0524","next":"us-tx/tex.-occupations-code-2352.101"},"notice":"GroundRules: Original legal text. Not legal advice."}