70C-2-204 - Certain negotiable instruments prohibited.
70C-2-204. Certain negotiable instruments prohibited.
With respect to a consumer credit sale not involving real property, the seller may not takea negotiable instrument under Section 70A-3-104 other than a check as evidence of theobligation of the buyer. A holder is not in good faith under Subsection 70A-1a-201(2)(t) if hetakes a negotiable instrument with notice that it is issued in violation of this section. A holder indue course under Section 70A-3-302 is not subject to the liabilities set forth in the provisions onthe effect of violations on rights of parties under Section 70C-7-201.
Amended by Chapter 272, 2007 General Session