Alabama Code Title 5. Banks and Financial Institutions § 5-19-5
Current as of December 30, 2022 | Updated by FindLaw Staff
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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: FindLaw.com - Alabama Code Title 5. Banks and Financial Institutions § 5-19-5 - last updated December 30, 2022 | https://codes.findlaw.com/al/title-5-banks-and-financial-institutions/al-code-sect-5-19-5/
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