Residential Disclosures From Sellers And Lenders Page 54
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100Residential Disclosures From Lenders
SUBJECT TO A FUTURE RATE AS
(B)
the
debtor
HIGH AS 24 PERCENT PER YEAR."
must, if required by the creditor, deliver to
(Emphasis added)
the creditor a copy of the policy and proof of
the payment of premiums; and
Comment: Truth in Lending/Reg Z exempts
(C)
if the debtor
transactions that would normally be covered
fails to meet any requirement listed in
if the credit extended exceeds $25,000.
Paragraph (A) or (B), the creditor may
However, if the credit extended is secured
obtain collateral protection insurance on
by real property or if the mortgaged property
behalf of the debtor at the debtor's
is the principal dwelling of the customer the
expense……….(Emphasis added)
exemption is negated. Consequently, this
statute very seldom comes into play in
Link:
traditional mortgage lending scenarios.
However, it could be applicable in workouts
I/content/htm/fi.004.00.000307.00.htm#307.
where a part of the debt is left unsecured.
052.00
Link:
e. Chapter 342-Consumer Loans
I/content/htm/fi.004.00.000303.00.htm#303.
(1) Sec. 342.152
015.00
§ 342.152. LICENSE DISPLAY. A license
d. Chapter 307-Collateral Protection
holder shall display a license at the place of
Insurance
business provided on the license.
Sec.
307.052.
CREDITOR
Link:
DUTIES.
(a) A creditor who requires
collateral protection insurance that is paid
I/content/htm/fi.004.00.000342.00.htm#342.
for directly or indirectly by a debtor may
152.00
place collateral protection insurance if:
(1) the debtor has entered
(2) Sec. 342.404
into a credit transaction with the creditor for
which a credit agreement exists;
Sec.
342.404.
INSURANCE
(2)
the credit agreement
NOTICE.
(a) If insurance is required on
requires the debtor to maintain insurance on
a loan made under this chapter, the lender
the collateral; and
shall give to the borrower written notice that
(3)
a notice has been
clearly and conspicuously states that:
included in the credit agreement or a
(1) insurance is required in
separate document provided to the debtor
connection with the loan; and
at the time the credit agreement is
(2)
the borrower as an
executed that states that:
option may furnish the required insurance
(A) the debtor is
coverage through an insurance policy that is
required to:
in existence and that is owned or controlled
(i)
keep
by the borrower or an insurance policy
the collateral insured against damage in
obtained from an insurance company
the amount the creditor specifies;
authorized to do business in this state.
(ii)
(b)
If insurance requested or
required on a loan made under this chapter is
purchase the insurance from an insurer
that is authorized to do business in this
sold or obtained by a lender at a premium or
state or an eligible surplus lines insurer;
rate of charge that is not fixed or approved
by the commissioner of insurance, the lender
and
(iii)
name
shall notify the borrower of that fact. If
the creditor as the person to be paid
notice is required under Subsection (a), the
under the policy in the event of a loss;
lender shall include that fact in the notice
required by Subsection (a).
8
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form St-55 - Joint Election Between Vendor And Lender To Designate Entitlement To Claim Sales Tax Bad Debt Refund Or Credit
Financial
Form St-55 - Joint Election Between Vendor And Lender To Designate Entitlement To Claim Sales Tax Bad Debt Refund Or Credit
Financial
Form Il-516-i And Form Il-516-b - Pass-through Prepayment Voucher (for Withholding From Individuals And Estates)/ Pass-through Prepayment Voucher (for Withholding From Corporations, Partnerships, And Trusts) - 2015
Financial
Related Categories
Parent category: Legal