Occupations Code › Title 14 › Chapter 2301 › Subchapter J

Texas Occupations Code § 2301.457

Prohibition: Change of Franchised Dealer's Capital Structure

Sale or Lease of Motor Vehicles · Manufacturers, Distributors, and Representatives

Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not prevent a franchised dealer who meets reasonable capital requirements from reasonably changing:

(1) the capital structure of the dealership; or

(2) the means by or through which the dealer finances the operation of the dealership.

Official text of the Texas Occupations Code as published by the Texas Legislative Council.

Official source
Legislative history

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