Texas Finance Code - Section 349.202. Correction Of Violation Of Failure To Act Or Performing Prohibited Act Resulting In Limited Liability
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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
Section: 349.003 349.004 349.005 349.101 349.102 349.103 349.201 349.202 349.203 349.204 349.205 349.301 349.302 349.303 349.304
§ 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
(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