Prohibition: Use of Promissory Note, Security Agreement, Or Insurance Policy

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