Section 397.004 - Limitation on Certain Debt Cancellation Agreements(a) This chapter applies only to a debt cancellation agreement, including a gap waiver agreement or other similarly named agreement, that includes insurance coverage as part of the lessee's responsibility to the holder.(b) The amount charged for a debt cancellation agreement made in connection with a lease may not exceed five percent of the adjusted capitalized cost financed pursuant to the lease.(c) The debt cancellation agreement becomes a part of or a separate addendum to the lease and remains a term of the lease on the assignment, sale, or transfer by the holder.Added by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 183,Sec. 7, eff. 9/1/2017.