MARVIN MANDEL, Governor

631

15-501. PROHIBITION AGAINST CERTAIN ASSIGNMENTS.

(A)       ASSIGNMENT UNLAWFUL.

IT IS UNLAWFUL FOR A CREDITOR WHO IS A CITIZEN OF
THE STATE TO ASSIGN OR TRANSFER A CLAIM AGAINST A
RESIDENT OF THE STATE:

(1)         FOR THE PURPOSE OF HAVING THE CLAIM
COLLECTED BY ATTACHMENT IN A COURT OUTSIDE THE STATE; OR

(2)         WITH THE INTENT TO DEPRIVE THE DEBTOR OF
HIS RIGHTS UNDER THE LAWS OF THE STATE WHICH EXEMPT HIS
WAGES OR PROPERTY FROM EXECUTION.

(B)       EXCEPTION.

THE PROVISIONS OF THIS SECTION DO NOT APPLY IF THE
CREDITOR, THE DEBTOR, OR THE PERSON OWING THE MONEY TO BE
ATTACHED IS NOT WITHIN THE JURISDICTION OF THE COURTS OF
THIS STATE.

REVISOR'S NOTE: This section is new language derived
without substantive change from the first
provision of Art. 83, §15. The regaining
provisions of this section and §16 are
consolidated into one section because they
deal with the same subject matter — i.e., a
creditor's liability for the assigned debt.

15-502. LIABILITY OF CREDITOR FOR ASSIGNED DEBT.

(A)       EXTENT OF CREDITOR'S LIABILITY.

IF THE CREDITOR ASSIGNS OR TRANSFERS THE DEBT TO A
NONRESIDENT IN VIOLATION OF §15-501 OF THIS SUBTITLE AND
THE DEBT IS COLLECTED BY THE ASSIGNEE OUTSIDE THE STATE,
THE CREDITOR IS LIABLE TO THE DEBTOR FOR THE FULL AMOUNT
OF THE DEBT INCLUDING COLLECTED INTEREST AND COSTS.        IN

ADDITION, THE CREDITOR FORFEITS HIS RIGHT TO EXEMPT HIS
OWN WAGES OR PROPERTY FROM EXECUTION IF A WRIT OF
EXECUTION IS ISSUED AGAINST HIM FOR COLLECTION OF THESE
AMOUNTS.

(B)       PRIMA FACIE EVIDENCE OF CREDITOR'S INTENT.

PROOF OF THE FACT OF THE ASSIGNMENT OR TRANSFER,
WHETHER OR NOT FOR VALUE, TO A NONRESIDENT ASSIGNEE IS
PRIMA FACIE EVIDENCE OF THE CREDITOR'S INTENT TO DEPRIVE
THE DEBTOR OF HIS RIGHTS UNDER THE LAWS OF THE STATE
WHICH EXEMPT HIS WAGES OR PROPERTY FROM EXECUTION.

REVISOR'S NOTE: This section presently appears as
the latter part of Art. 83, §15 and §16.