Restriction on Security in Sales or Leases

(1)With respect to a consumer credit sale, a seller may take a security interest in the goods sold, in goods installed in or affixed to the goods sold, and in property to which the goods are affixed. The seller may also take a security interest in property of the buyer to secure the debt arising from a consumer credit sale primarily for an agricultural purpose. Except as provided with respect to cross-collateral (§ 2408), a seller may not otherwise take a security interest in property of the buyer to secure the debt arising from a consumer credit sale unless the sale involves maintenance, repair or improvement of the buyer's property. In this case a seller may take a security interest in the property affected, if in the case of a security interest in real property the debt secured is Five Hundred Dollars ($500.00), or more, or, in the case of a security interest in personal property the debt secured is One Hundred Fifty Dollars ($150.00) or more.

(2)With respect to a consumer lease, a lessor may not take a security interest in property of the lessee to secure the debt arising from the lease.

(3)A security interest taken in violation of this section is void.

(4)The amounts of Five Hundred Dollars ($500.00) and One Hundred Fifty Dollars ($150.00) in subsection

(1)are subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106).