Sec. 45.50.541. Nonnegotiability of consumer paper.
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Sec. 45.50.541. Nonnegotiability of consumer paper.
(a)If a contract for sale or lease of consumer goods or services on credit entered into between a retail seller and a retail buyer requires or involves the execution of a promissory note or instrument or other evidence of indebtedness of the buyer, the note, instrument, or evidence of indebtedness shall have printed on its face the words “consumer paper,” and the note, instrument, or evidence of indebtedness with the words “consumer paper” printed on it is not a negotiable instrument, within the meaning of AS 45.01 — AS 45.08 , AS 45.12 , AS 45.14 , and AS 45.29 (Uniform Commercial Code).
(b)Notwithstanding the absence of such a notice on a note, instrument, or evidence of indebtedness arising out of a consumer credit sale or consumer lease as described in this section, an assignee of the rights of the seller or lessor is subject to all claims and defenses of the buyer or lessee against the seller or lessor arising out of the sale or lease. An agreement to the contrary has no effect in limiting the rights of a consumer.
(c)The assignee's liability under this section may not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee.