A commercial sales-based financing contract that contains a confession of judgment provision or any similar provision is void and unenforceable.
Official text of the Texas Finance Code as published by the Texas Legislative Council.
Finance Code › Title 5 › Chapter 398 › Subchapter B
Texas Finance Code § 398.055
Unenforceability of Certain Contract Provisions
Commercial Sales-Based Financing · Regulation and Disclosure Requirements
Legislative history
Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.