A motor vehicle dealer's right to receive payments from a manufacturer or distributor required by section 44-20-124 (1)(l) and (1)(r) is not liable to attachment or execution and may not otherwise be seized, taken, appropriated, or applied in a legal or equitable process or by operation of law to pay the debts or liabilities of the manufacturer or distributor. This section shall not prohibit a secured creditor from exercising rights accrued pursuant to a security agreement if the right arose as a result of the manufacturer or distributor voluntarily creating a security interest before paying existing debts or liabilities of the manufacturer or distributor. This section shall not prohibit a manufacturer or distributor from withholding a portion of the payments necessary to cover an amount of money owed to the manufacturer or distributor as an offset to the payments if the manufacturer or distributor provides the motor vehicle dealer written notice thereof.
Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 87, § 2, effective October 1.
Editor's note: This section is similar to former § 12-6-128 as it existed prior to 2018.