Negotiable Promissory Notes Prohibited

In a consumer credit sale or consumer lease other than a sale or lease primarily for an agricultural purpose, the seller or lessor may not take a negotiable promissory note payable in installments as evidence of the obligation of the buyer or lessee. A promissory note negotiable in form issued in violation of this section may be enforced as a negotiable instrument by a holder in due course according to its terms. The holder in due course is not subject to the liabilities set forth in the provisions on the effect of violations on the rights of parties (§ 5201) and the provisions on civil actions by Administrator (§ 6113).