Section 12-507 - Note taken as part of account.
§ 12-507. Note taken as part of account.
(a) Note to refer to account.- If, as part of a retail credit account, a promissory note is taken by the seller or financial institution, the note shall refer to the account out of which it arises.
(b) Confession of judgment not allowed.- The note may not contain a confession of judgment or any power of attorney to appear for the buyer or for any surety or guarantor for the buyer to confess judgment.
(c) Assignment.- If the note is assigned, it is subject to all defenses which the buyer might have asserted against the seller or financial institution.
[An. Code 1957, art. 83, § 153D; 1975, ch. 49, § 3.]