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Alabama Code Title 5. Banks and Financial Institutions § 5-19-5

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In a consumer credit sale, the seller may not take as evidence of the obligation of the buyer, a negotiable instrument other than (1) a check;  or (2) a promise or order containing a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee. A holder is not a holder in due course if the holder 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 prescribed in this chapter.

Cite this article: - Alabama Code Title 5. Banks and Financial Institutions § 5-19-5 - last updated December 30, 2022 |

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