§ 44-20-137 — Payout exemption to execution

A motor vehicle dealer's right
to receive payments from a manufacturer or distributor required by section 44-20-124 (1)(l) and (1)(r) is not liable to attachment or execution and may not otherwise be
seized, taken, appropriated, or applied in a legal or equitable process or by
operation of law to pay the debts or liabilities of the manufacturer or distributor.
This section shall not prohibit a secured creditor from exercising rights accrued
pursuant to a security agreement if the right arose as a result of the manufacturer
or distributor voluntarily creating a security interest before paying existing debts or
liabilities of the manufacturer or distributor. This section shall not prohibit a
manufacturer or distributor from withholding a portion of the payments necessary
to cover an amount of money owed to the manufacturer or distributor as an offset
to the payments if the manufacturer or distributor provides the motor vehicle dealer
written notice thereof.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 87, � 2, effective October 1.