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Tex. Fin. Code § 342.410

PAYMENT FOR INSURANCE FROM LOAN PROCEEDS

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff

A lender, including an officer, agent, or employee of the lender, who accepts insurance under this subchapter as protection for a loan:

(1) may deduct the premium or identifiable charge for the insurance from the proceeds of the loan; and

(2) shall pay the deducted amounts to the insurance company writing the insurance.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.