Financial Institutions

CHAPTER 19-14.1
Lenders and Loan Brokers

SECTION 19-14.1-1

§ 19-14.1-1. Confessions of judgment – Incomplete instruments prohibited.

No lender or loan broker shall take any confession of judgment, or any power of attorney, except a power of attorney or power of sale authorizing the lender or loan broker in case of default in payment of interest or principal, to enforce the provisions of any chattel mortgage or pledge. No lender or loan broker shall take any note, promise to pay, or security that does not accurately disclose the actual amount of the loan, the time for which it is made, and the agreed rate of interest nor any instrument in which blanks are left to be filled in after execution. The provisions of this section related to confessions of judgment and power of attorney shall not apply to real estate secured loans.

History of Section.
(P.L. 1995, ch. 82, § 53.)