In a consumer credit sale or consumer lease, the seller or lessor may not take a negotiable instrument other than a check as evidence of the obligation of the buyer or lessee. A holder is not in good faith if he 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 set forth in the provisions on the effect of violations on rights of parties (Section 14A-5-202) and the provisions on civil actions by Administrator (Section 14A-6-113).

Laws 1969, HB 1001, c. 352, § 2-403, emerg. eff. July 1, 1969; Amended by Laws 1982, SB 643, c. 335, § 24, emerg. eff. June 1, 1982.