§ 44-20-435 — Payout exemption to execution

A powersports vehicle dealer's
right to receive payments from a manufacturer or distributor required by section
44-20-423 (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. 133, � 2, effective October 1.