Texas Finance Code 347.357 – Disposal of Insurance and Tax Escrow Account On Default
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Terms Used In Texas Finance Code 347.357
- Consumer: means a person to whom credit is extended in a credit transaction. See Texas Finance Code 347.002
- Credit transaction: means :
(A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
(i) subject to a finance charge; or
(ii) payable in more than four installments, not including a down payment; and
(B) a lease or bailment described by § 347. See Texas Finance Code 347.002 - Escrow: Money given to a third party to be held for payment until certain conditions are met.
If a consumer is in default, the amount in the consumer’s insurance and tax escrow accounts established under § 347.258 shall be applied to the remaining balance of the credit transaction.