Superseded 5/5/2027
121 words·~1 min read·
/ut/title-70c/chapter-2/5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/6/2026
Superseded 5/5/2027
70C-2-204. Certain negotiable instruments prohibited.
(1)With respect to a consumer credit sale not involving real property, the seller may not take a negotiable instrument under Section 70A-3-104 other than a check as evidence of the obligation of the buyer.
(2)A holder is not in good faith as that term is defined in Section 70A-1a-201 if the holder takes a negotiable instrument with notice that the negotiable instrument is issued in violation of this section.
(3)A holder in due course under Section 70A-3-302 is not subject to the liabilities set forth in the provisions on the effect of violations on rights of parties under Section 70C-7-201 .
Amended by Chapter 322 , 2026 General Session