Negotiable instruments prohibited.
In a consumer credit sale, no seller shall take or otherwise arrange for the consumer to sign an instrument, except a check, payable “to order” or “to bearer” as evidence of the credit obligation of the consumer. Any holder of an instrument prohibited by subsection (a) of this section 28-3807, if he takes it with knowledge of a violation of this section, takes it subject to all claims and defenses of the consumer up to the amount owing on the transaction total at the time of the assignment.
Annotations
Dec. 17, 1971, 85 Stat. 670, Pub. L. 92-200, § 4 1973 Ed., § 28-3807. 1981 Ed., § 28-3807. This section is referenced in § 28-3909. Consumer protection procedures, restraining prohibited acts, see § 28-3909.
Sourced from the DC Council Open Law Library (public domain).
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