§ 5-3-105 — Notice to cosigners and similar parties

(1) No natural person,
other than the spouse of the consumer, shall be obligated as a cosigner, comaker,
guarantor, endorser, surety, or similar party with respect to a consumer credit
transaction, unless before or contemporaneously with signing any agreement of
obligation or any writing setting forth the terms of the consumer's agreement, the
person receives a written notice that contains a completed identification of the
debt he or she may have to pay and reasonably informs such person of his or her
obligation with respect to it. Such written notice may be set forth in the consumer's
agreement of obligation or in a separate writing. For purposes of this section, the
word cosigner, comaker, guarantor, endorser, or surety means a natural
person who, by agreement and without compensation, renders himself or herself
liable for the obligation of another in a consumer credit transaction, and the terms
agreement and consumer's agreement mean the original underlying agreement.

(2) The notice required by this section must be a clear and conspicuous
notice and comply with the disclosure requirements of 16 CFR 444.3.

(3) The notice required by this section need not be given to a seller, lessor, or
lender who is obligated to an assignee of his or her rights.

(4) A person entitled to notice pursuant to this section shall also be given a
copy of any writing setting forth the terms of the consumer's agreement and of any
separate agreement of obligation signed by the person entitled to the notice.

(5) A cosignor is entitled to a notice of right to cure pursuant to sections 5-5-110 (4) and 5-5-111 (3).

Legislative History

Source: L. 2000: Entire article R&RE, p. 1216, � 1, effective July 1. L. 2023: (2) amended, (HB 23-1301), ch. 303, p. 1815, � 1, effective August 7.