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This entry was published on 2014-09-22
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SECTION 551
Negotiable notes given for a speculative consideration
General Business (GBS) CHAPTER 20, ARTICLE 29-D
§ 551. Negotiable notes given for a speculative consideration.
Notwithstanding article three of the uniform commercial code, a
negotiable promissory note, the consideration of which consists in whole
or in part of the purchase price of any farm product, at a price greater
by at least four times than the fair market value of the same product at
the time in the locality, or of the membership and rights in an
association, company or combination to produce or sell any farm product
at a fictitious rate, or of a contract or bond to purchase or sell any
farm product at a price greater by four times than the market value of
the same product at the time in the locality, must contain the words
"given for a speculative consideration" or other words clearly showing
the nature of the consideration, prominently and legibly written or
printed on the face of such note above the signature thereof; and such
note, in the hands of any purchaser or holder, is subject to the same
defenses as in the hands of the original owner or holder.