537.3208 Notice to cosigners and similar parties.

278 words·~1 min read·/ia/chapter-537-consumer-credit-code/537-3208

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. No natural person, other than the spouse of the consumer, is obligated as a cosigner, comaker, guarantor, endorser, surety, or similar party with respect to a consumer credit transaction, unless before or contemporaneously with signing any separate agreement of obligation or any writing setting forth the terms of the debtor’s agreement, the person receives a separate written notice that contains a completed identification of the debt the person may have to pay and reasonably informs the person of the person’s obligation with respect to it.

2. A clear and conspicuous notice in substantially the following form complies with this section:

NOTICE

You agree to pay the debt identified below although you may not

personally receive any property, services, or money. You may be

sued for payment although the person who receives the property,

services, or money is able to pay. This notice is not the contract that

obligates you to pay the debt. Read the contract for the exact terms

of your obligation.

IDENTIFICATION OF DEBT

YOU MAY HAVE TO PAY

................................................................

(name of debtor)

................................................................

(name of creditor)

................................

................................................................

(kind of debt)

I have received a copy of this notice.

................................

................................................................

(Signed)

3. The notice required by this section need not be given to a seller, lessor, or lender who is obligated to an assignee of the seller’s, lessor’s, or lender’s rights.

4. A person entitled to notice under this section shall also be given a copy of any writing setting forth the terms of the debtor’s agreement and of any separate agreement of obligation signed by the person entitled to the notice.

[C75, 77, 79, 81, §537.3208]

Referred to in §537.5201