GAP LIABILITY NOTICE Sample Clauses
The GAP Liability Notice clause serves to inform parties about their responsibilities for any financial shortfall, or "gap," that may arise between an insurance payout and the remaining balance owed on a financed asset, such as a vehicle. In practice, this clause typically applies when an asset is lost or destroyed and the insurance settlement does not fully cover the outstanding loan or lease amount, leaving the borrower liable for the difference. Its core function is to ensure that all parties are aware of this potential liability, thereby preventing misunderstandings and clarifying financial obligations in the event of a total loss.
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GAP LIABILITY NOTICE. In the event of theft or damage to your Vehicle that results in a total loss, there may be a gap between the amount you owe under this Contract and the proceeds of your insurance settlement and deductible. THIS CONTRACT PROVIDES THAT YOU ARE LIABLE FOR THE GAP AMOUNT. Optional Gap Waiver may be offered for an additional charge. You may decline the Optional Gap Waiver (debt cancellation agreement) or any of the service contracts. They are not required to obtain credit, are not a factor in the credit decision, and are not a factor in the terms of the credit or the related sale of the Vehicle. These voluntary protections will not be provided unless you sign and agree to pay the additional cost. Obtaining this or any insurance or service contract is not a condition to obtain credit, with the exception of single interest insurance, as provided above in Section 10.
GAP LIABILITY NOTICE. In the event of theft or damage to the Vehicle that results in a total loss, there may be a gap between the amount due upon early termination and the proceeds of your insurance settlement and deductible. THIS LEASE PROVIDES THAT LESSEE IS LIABLE FOR THE GAP AMOUNT.
GAP LIABILITY NOTICE. In the event of theft or damage to your vehicle that results in a total loss, there may be a gap between the amount you owe under this contract and the proceeds of your insurance settlement and deductible. THIS CONTRACT PROVIDES THAT YOU ARE LIABLE FOR THE GAP AMOUNT. An optional gap contract (debt cancellation contract) for coverage of the gap amount may be offered for an additional charge.