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Tex. Occ. Code § 2301.459

PROHIBITION: USE OF PROMISSORY NOTE, SECURITY AGREEMENT, OR INSURANCE POLICY

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff

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.

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