Tex. Occ. Code § 2301.459

Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.

Section 2301.459 - Prohibition: Use of Promissory Note, Security Agreement, or Insurance Policy

Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not require or attempt to require that a franchised dealer assign to or act as an agent for a manufacturer, distributor, or representative to secure:

(1) a promissory note or security agreement given in connection with the sale or purchase of a new motor vehicle; or

(2) an insurance policy on or having to do with the operation of a vehicle that is sold.

Tex. Occ. Code § 2301.459

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. 6/1/2003.