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Texas Finance Code - Section 349.202. Correction Of Violation Of Failure To Act Or Performing Prohibited Act Resulting In Limited Liability

Legal Research Home > Texas Laws > Finance Code > Texas Finance Code - Section 349.202. Correction Of Violation Of Failure To Act Or Performing Prohibited Act Resulting In Limited Liability

§ 349.202. CORRECTION OF VIOLATION OF FAILURE TO ACT OR 
PERFORMING PROHIBITED ACT RESULTING IN LIMITED LIABILITY.  (a) 
Liability to an obligor for a violation of this subtitle to which 
Section 349.003 applies is limited as provided by this section if, 
after the 60-day period described by Section 349.201(a)(1) but 
before the time the obligor gives written notice of that violation 
or files an action alleging that violation, the violation is 
corrected as to that obligor by:
		(1)  the performance of the required act;  and                                
		(2)  giving to the obligor written notice of the 
violation as provided by Section 349.204.
	(b)  The liability of any person for the violation to the 
obligor as described by Subsection (a) is limited for each 
transaction to an amount that does not exceed one, but not both, of 
the following:
		(1)  the actual economic loss suffered by the obligor 
as a result of the violation;  or
		(2)  the time price differential or interest contracted 
for, charged, or received, not to exceed $2,000, if:
			(A)  the violation was material;  and                                        
			(B)  the violation induced the obligor to enter 
into a transaction that the obligor would not have entered if the 
violation had not occurred.
	(c)  A person who is liable under Subsection (b) is also 
liable for reasonable attorney's fees set by the court.
	(d)  In a judicial proceeding under Subsection (b)(2), the 
court determines whether the violation is material and the finder 
of fact determines whether the violation induced the obligor to 
enter into the transaction.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 11, 2007