A credit union may establish and operate a GAP program for its members as if it were operating as a federal credit union. For the purposes of this section, a GAP program is defined as a program in which the credit union purchases insurance to protect itself from losses resulting when a leased vehicle or vehicle securing a loan or other extension of credit held by the credit union is declared a total loss or is stolen and the primary insurance settlement is not sufficient to cover the outstanding balance. The credit union may then, with or without a fee, enter into a debt cancellation contract, GAP waiver, or similar agreement under which the member will not be held responsible for the deficiency. If the debt cancellation contract, GAP waiver, or similar agreement is offered on a fee basis, then participation must be optional for the member.

Source Note:The provisions of this §91.403 adopted to be effective May 13, 1999, 24 TexReg 3473.