Guam § 2404 - Transferee Not Subject to Defenses Against Seller if Proper

§ 2404. Transferee Not Subject to Defenses Against Seller if Proper

Notice Of Transfer Given to Buyer.

(1) With respect to a consumer credit sale or lease, other than a sale

or lease primarily for an agricultural purpose, an agreement by the buyer

or lessee not to assert against a transferee a claim or defense arising out

of the sale or lease is enforceable only by a transferee not related to the

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seller or lessor who acquires the buyer's or lessee's contract in good faith

and for value, who gives the buyer or lessee notice of the transfer as

provided in this section and who, within six months after the mailing of

the notice of transfer, receives no written notice of the facts giving rise to

the buyer's or lessee's claim or defense. The notice of transfer shall be in

writing and addressed to the buyer or lessee at his address as stated in the

contract, identify the contract, describe the goods or services, state the

name and address of the transferee, the amount payable by the buyer or

lessee and the number, amounts and due dates of the installments, and

contain a conspicuous notice to the buyer or lessee that he has six months

within which to notify the transferee in writing of any complaints, claims

or defenses he may have against the seller or lessor and that if written

notification of the complaints, claims or defenses is not given within the

six-month period, the transferee will have the right to enforce the

contract free of any claims or defenses the buyer or lessee may have

against the seller or lessor.

(2) A transferee does not acquire a buyer's or lessee's contract in

good faith within the meaning of subsection (1) if the transferee has

knowledge or, from his course of dealing with the seller or lessor or his

records, notice of substantial complaints by other buyers or lessees of the

seller's or lessor's failure or refusal to perform his contracts with them

and of the seller's or lessor's failure to remedy his defaults within a

reasonable time after the transferee notifies him of the complaints.