§ 14A-2-403. Certain negotiable instruments prohibited.

In a consumer credit sale or consumer lease, the seller or lessor may not take a negotiable instrument other than a check as evidence of the obligation of the buyer or lessee.  A holder is not in good faith if he takes a negotiable instrument with notice that it is issued in violation of this section.  A holder in due course is not subject to the liabilities set forth in the provisions on the effect of violations on rights of parties (Section 5-202) and the provisions on civil actions by Administrator (Section 6-113).

Added by Laws 1969, c. 352, § 2-403, eff. July 1, 1969.  Amended by Laws 1982, c. 335, § 24, operative June 1, 1982.