Defenses against holder in due course of instrument in consumer goods credit transaction.

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(a) Any holder in due course of a promissory note, contract or other instrument, other than an instrument issued in connection with a credit card transaction, evidencing an indebtedness, signed or executed by a buyer in connection with a credit transaction covering consumer goods, as defined in section 42a-9-102 or for consumer services rendered, shall be subject to all of the claims and defenses which the buyer has against the seller arising out of the transaction or against the person or persons providing the services, limited to the amount of indebtedness then outstanding in connection with the credit transaction, provided the buyer shall have made a prior written demand on the seller with respect to the transaction.

(b) For the purposes of this section “consumer services” includes any supply of accommodations, exercise and health club programs, instruction or education, including any type of training course in any field such as personality improvement, self motivation, salesmanship and similar fields, or any work, repair or other services rendered for personal, family or household purposes.

(1972, P.A. 137; P.A. 73-466; P.A. 75-251; P.A. 76-169, S. 14; P.A. 77-604, S. 35, 84; P.A. 82-160, S. 240; P.A. 01-132, S. 176.)

History: P.A. 73-466 added Subsecs. (b) and (c) and applied former provisions, designated as Subsec. (a) to holders of notes, contracts, etc. rather than to “subsequent” holders of notes, contracts, etc.; P.A. 75-251 amended Subsec. (a) to apply with respect to notes, etc. for consumer services rendered and defined “consumer services”; P.A. 76-169 deleted Subsecs. (b) and (c) re instruments issued in connection with credit card transaction for purchase of item or service; P.A. 77-604 reiterated amendments enacted in P.A. 75-251 but inadvertently omitted in P.A. 76-169; P.A. 82-160 rephrased the section and inserted Subsec. indicators; P.A. 01-132 amended Subsec. (a) to replace Sec. 42a-9-109 with Sec. 42a-9-102 as the statutory reference for the definition of “consumer goods”.


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