§ 59-2006. Notes for payments to third parties upon breach prohibited - Rights of actions and defenses not cut off by assignment.

A.  A contract or membership agreement for health spa services shall not require the execution of any note or series of notes by the buyer which, if separately negotiated, will require the buyer to make payments to third parties on a note or notes if the contract or membership agreement for the health spa services is breached by the health spa.

B.  Whether or not the health spa has complied with the notice requirements of Section 7 of this act, any right of action or defense arising out of a health spa contract or membership agreement which the buyer has against the health spa, and which would be cut off by assignment, shall not be cut off by assignment of the contract or membership agreement to any third party holder, whether or not the holder acquires the contract in good faith and for value.

Added by Laws 1987, c. 217, § 8, eff. Nov. 1, 1987. Renumbered from Title 15, § 775.6 by Laws 1988, c. 215, § 12, eff. Nov. 1, 1988; Laws 1991, c. 96, § 6, eff. Sept. 1, 1991.