§ 28-3807. Negotiable instruments prohibited.

Current through October 23, 2012

(a) In a consumer credit sale, no seller shall take or otherwise arrange for the consumer to sign an instrument, except a check, payable "to order" or "to bearer" as evidence of the credit obligation of the consumer.

(b) Any holder of an instrument prohibited by subsection (a) of this section 28-3807, if he takes it with knowledge of a violation of this section, takes it subject to all claims and defenses of the consumer up to the amount owing on the transaction total at the time of the assignment.

                
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(Dec. 17, 1971, 85 Stat. 670, Pub. L. 92-200, § 4.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications

1981 Ed., § 28-3807.

1973 Ed., § 28-3807.