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Tex. Ins. Code § 549.003

CANCELLATION OF POLICY AFTER FORECLOSURE AUTHORIZED

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff

In the event of a foreclosure under a deed of trust, the lender may cancel an insurance policy covering the foreclosed property and is entitled to any unearned premiums from the policy if the lender:

(1) credits the amount of the unearned premiums against any deficiency owed by the borrower; and

(2) delivers to the borrower any excess unearned premiums not credited against a deficiency under Subdivision (1).

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