1788                             Laws of Maryland                      [Ch. 708

CHAPTER 708
(House Bill 737)

AN ACT to add new Section 21F to Article 83 of the Annotated
Code of Maryland (1971 Supplement), title "Sales and Notices,"
subtitle "Consumer Protection," to follow immediately after Sec-
tion 21E thereof, providing that a good faith assignee of certain
contracts AND/OR PROMISSORY NOTES IN CONNECTION
THEREWITH for the sale of goods or services will be subject to
set-off defenses by the buyer if asserted within a specified period
after notice of the assignment to the buyer, and generally relating
thereto.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 21F be and it is hereby added to Article 83 of the
Annotated Code of Maryland (1971 Supplement), title "Sales and
Notices," subtitle "Consumer Protection," to follow immediately
after Section 21E thereof, and to read as follows:

21F.

With respect to the assignment of any contract AND/OR PROM-
ISSORY NOTE IN CONNECTION THEREWITH for any sale in
Maryland of goods with or without rendition of OR services, including
those where the seller takes a security interest in the goods, where
the assignee knows that the sale is to a natural person primarily
for a personal, family or household purpose, a good faith assignee
for value is subject to all defenses arising out of such sale if asserted
within a period of 90 days after mailing of written notice to the
buyer of the assignment THE NOTICE OF ASSIGNMENT SHALL
BE IN WRITING, SHALL IDENTIFY THE CONTRACT, DE-
SCRIBE THE GOODS OR SERVICES, STATE THE NAME AND
ADDRESS OF THE ASSIGNEE, AND CONTAIN A CONSPICU-
OUS NOTICE TO THE BUYER THAT HE HAS NINETY DAYS
WITHIN WHICH TO NOTIFY THE ASSIGNEE IN WRITING
OF ANY COMPLAINTS, CLAIMS OR DEFENSES HE MAY
HAVE AGAINST THE SELLER AND THAT IF WRITTEN
NOTIFICATION OF THE COMPLAINTS, CLAIMS OR DE-
FENSES IS NOT RECEIVED BY THE ASSIGNEE WITH-
IN THE NINETY DAY PERIOD THE ASSIGNEE WILL
HAVE THE RIGHT TO ENFORCE THE CONTRACT FREE
OF ANY CLAIMS OR DEFENSES THE BUYER MAY HAVE
AGAINST THE SELLER. No such defense is valid against such
assignee if the buyer fails to mail written notice addressed to the
assignee of such defense at the assignee's designated address within
90 days from the date of mailing of the notice to the buyer of the
assignment unless the assignee knew of the defense at the time it took
the assignment. ALL DEFENSES OF THE BUYER AGAINST THE
SELLER SHALL BE VALID AGAINST THE ASSIGNEE UN-
LESS NOTICE IS GIVEN PURSUANT TO THIS SECTION.
Rights of the buyer can only be asserted as a matter of
defense or set-off against a claim by the assignee. The remedy
provided herein shall be in addition to and not in lieu of any other
remedy provided the buyer elsewhere in this Article UNDER
MARYLAND LAW, INCLUDING ARTICLE 83, SECTION 147
AND ARTICLE 83, SECTION 153D (F). NO ACT, AGREEMENT