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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 83(R)

House Bill 2459

House Author:  Thompson, Senfronia et al.

Effective:  9-1-13

Senate Sponsor:  Carona


            Previous law required the amount charged for a debt cancellation agreement that includes insurance coverage as part of the retail buyer's responsibility to the holder and that is made in connection with a retail installment contract for a motor vehicle sale to be created in good faith and be commercially reasonable. House Bill 2459 amends the Finance Code to instead cap that amount at five percent of the amount financed under the contract.