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§ 16.038.Rescission or Waiver of Accelerated Maturity Date

Title 2. Trial, Judgment, and Appeal · Subtitle B. Trial Matters · Chapter 16. Limitations · Subchapter B. Limitations of Real Property Actions · Last amended 2015 · Last verified August 29, 2026

In one sentenceSection 16.038 lets a lender undo an acceleration by mailing a written rescission notice to each debtor, which restores the original maturity date and the limitations period with it.

Full Text of § 16.038

Text sizeJump to: (a) (b) (c) (d) (e)

(a)If the maturity date of a series of notes or obligations or a note or obligation payable in installments is accelerated, and the accelerated maturity date is rescinded or waived in accordance with this section before the limitations period expires, the acceleration is deemed rescinded and waived and the note, obligation, or series of notes or obligations shall be governed by Section 16.035 as if no acceleration had occurred.
(b)Rescission or waiver of acceleration is effective if made by a written notice of a rescission or waiver served as provided in Subsection (c) by the lienholder, the servicer of the debt, or an attorney representing the lienholder on each debtor who, according to the records of the lienholder or the servicer of the debt, is obligated to pay the debt.
(c)Service of a notice under Subsection (b) must be by first class or certified mail and is complete when the notice is deposited in the United States mail, postage prepaid and addressed to the debtor at the debtor's last known address. The affidavit of a person knowledgeable of the facts to the effect that service was completed is prima facie evidence of service.
(d)A notice served under this section does not affect a lienholder's right to accelerate the maturity date of the debt in the future nor does it waive past defaults.
(e)This section does not create an exclusive method for waiver and rescission of acceleration or affect the accrual of a cause of action and the running of the related limitations period under Section 16.035(e) on any subsequent maturity date, accelerated or otherwise, of the note or obligation or series of notes or obligations.
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Plain-English Summary

Acceleration starts the four-year foreclosure clock on the whole balance. If a lender accelerates and then works with the borrower, the clock keeps running and the lien can expire while the parties are negotiating. This section supplies the undo.

Where the accelerated maturity date is rescinded or waived before the limitations period expires, the acceleration is nullified and the note is governed as though it had never been accelerated.

The method is prescribed. A written notice of rescission or waiver, served by the lienholder, the debt servicer, or an attorney for the lienholder, on each debtor who is obligated according to the records. Service is by first class or certified mail and is complete when deposited in the mail, postage prepaid, addressed to the debtor's last known address.

Completion on deposit matters: the lender does not bear the risk of non-delivery, and an affidavit of the person mailing it is evidence of service.

Two limits keep this from becoming a trap for borrowers. A rescission notice does not waive past defaults and does not affect the lender's right to accelerate again in future. And subsection (e) confirms the section is not the exclusive method of rescinding acceleration.

Frequently Asked Questions

Can a lender undo an acceleration?

Yes, by written notice of rescission or waiver served on each debtor before the limitations period expires. The note is then treated as though it had never been accelerated.

How must the notice be sent?

By first class or certified mail to the debtor's last known address. Service is complete when the notice is deposited in the mail, not when it is received.

Does rescinding mean the lender forgave the default?

No. The notice does not waive past defaults and does not affect the right to accelerate again later.

Is this the only way to rescind an acceleration?

No. Subsection (e) says the section does not create an exclusive method.

Amendment History

  • Added by Acts 2015, 84th Leg., R.S., Ch. 759 (H.B. 2067), Sec. 1, eff. June 17, 2015.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source