Title 70C Chapter 2 Section 204

Utah Consumer Credit Code
Finance Charges and Related Provisions
Section 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 take a negotiable instrument under Section 70A-3-104 other than a check as evidence of the obligation of the buyer. A holder is not in good faith under Subsection 70A-1a-201(2)(t) if he takes a negotiable instrument with notice that it is issued in violation of this section. A holder in due course under Section 70A-3-302 is not subject to the liabilities set forth in the provisions on the effect of violations on rights of parties under Section 70C-7-201.


Amended by Chapter 272, 2007 General Session