If a borrower provides a lender with evidence of property insurance coverage that names the lender as a loss payee and that is equivalent to insurance purchased already through the lender, the lender must promptly cancel any equivalent property insurance or collateral protection insurance. The refund of any unearned insurance premium must be applied to the balance of the loan or refunded to the borrower.

Source Note: The provisions of this §83.810 adopted to be effective November 9, 2006, 31 TexReg 9001; amended to be effective November 4, 2010, 35 TexReg 9698