Payment for services to be by check — taking other negotiable instrument, effect — contract limitation — execution of note or series of notes prohibited.

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5. Payment for services to be by check — taking other negotiable instrument, effect — contract limitation — execution of note or series of notes prohibited.

Effective - 28 Aug 1995

417.418. Payment for services to be by check — taking other negotiable instrument, effect — contract limitation — execution of note or series of notes prohibited. — 1. In payment for invention development services, the invention developer shall not take from a customer a negotiable instrument other than a check as evidence of the obligation of the customer. Notwithstanding any provision of chapter 400 to the contrary, a holder of a negotiable instrument is not a holder in due course if he takes a negotiable instrument taken from a customer in violation of this section.

2. No contract for invention development services shall require the execution of any note or draft or series of notes or drafts by the customer which, when separately negotiated, will cut off as to third parties any right of action or defense which the customer may have against the invention developer.

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(L. 1995 S.B. 80 & 88)

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