Sec. 348.602. DEBT CANCELLATION AGREEMENTS EXCLUSION LANGUAGE. (a) In addition to the provisions required by Section 348.603, a debt cancellation agreement must fully disclose all provisions permitting the exclusion of loss or damage including, if applicable:
(1) an act occurring after the original maturity date or date of the holder's acceleration of the retail installment contract;
(2) any dishonest, fraudulent, illegal, or intentional act of any authorized driver that directly results in the total loss of the motor vehicle;
(3) any act of gross negligence by an authorized driver that directly results in the total loss of the motor vehicle;
(4) conversion, embezzlement, or concealment by any person in lawful possession of the motor vehicle;
(5) lawful confiscation by an authorized public official;
(6) the operation, use, or maintenance of the motor vehicle in any race or speed contest;
(7) war, whether or not declared, invasion, insurrection, rebellion, revolution, or an act of terrorism;
(8) normal wear and tear, freezing, or mechanical or electrical breakdown or failure;
(9) use of the motor vehicle for primarily commercial purposes;
(10) damage that occurs after the motor vehicle has been repossessed;
(11) damage to the motor vehicle before the purchase of the debt cancellation agreement;
(12) unpaid insurance premiums and salvage, towing, and storage charges relating to the motor vehicle;
(13) damage related to any personal property attached to or within the motor vehicle;
(14) damages associated with falsification of documents by any person not associated with the retail seller or other person canceling the retail buyer's obligation;
(15) any unpaid debt resulting from exclusions in the retail buyer's primary physical damage coverage not included in the debt cancellation agreement;
(16) abandonment of the motor vehicle by the retail buyer only if the retail buyer voluntarily discards, leaves behind, or otherwise relinquishes possession of the motor vehicle to the extent that the relinquishment shows intent to forsake and desert the motor vehicle so that the motor vehicle may be appropriated by any other person;
(17) any amounts deducted from the primary insurance carrier's settlement due to prior damages; and
(18) any loss occurring outside the United States or outside the United States and Canada.
(b) An exclusion of loss or damage not listed in Subsection (a) may be included in a debt cancellation agreement only if the exclusion is disclosed in plain, easy to read language.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1034 (H.B. 2931), Sec. 2, eff. September 1, 2011.
Section: Previous 348.509 348.510 348.511 348.512 348.513 348.514 348.515 348.516 348.517 348.518 348.601 348.602 348.603 348.604 348.605 NextLast modified: September 28, 2016