- (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.