1. (a) A prize winner electing to pledge all or any part of a prize as collateral for a loan shall comply with this section to receive prize payments.

2. (b) In order to be entitled to receive a prize payment or payments from the commission, a secured party shall obtain a certified final order of a court of competent jurisdiction which:

   1. (1) Adjudges the prize winner in default of a loan agreement with the secured party;
   2. (2) Makes findings with respect to the loan agreements and financing statements constituting the loan transaction which are equivalent to those required pursuant to Lot 503.01(c) and, in addition, a finding that truth-in-lending disclosures set forth in 12 CFR 226.17, 226.18, 226.19, and 226.20 were made; and
   3. (3) Identifies specific payments and awards ownership of such payments to the secured party.

3. (c) Nothing in this section shall be construed to:

   1. (1) Create or enlarge a cause of action in favor of a secured party; or
   2. (2) Alter or impair any rule of law applicable to or governing the rights of a debtor under federal or state lending statutes.

Source. #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36