§ 403. Restrictions on retail instalment contracts and obligations.
1. No contract or obligation shall require or entail the execution of
any note or series of notes by the buyer, which when separately
negotiated, will cut off as to third parties any right of action or
defense which the buyer may have against the seller.

2. No contract or obligation shall contain any provision by which:

(a) The buyer agrees not to assert against an assignee a claim or
defense arising out of the sale, but it may contain such a provision as
to an assignee who acquires the contract or obligation on the sale of a
boat, where the principal balance at the time of sale exceeds five
thousand dollars, and to whom the buyer has not mailed written notice of
the facts giving rise to the claim or defense within ten days after such
assignee mails to the buyer, at his address shown on the contract or
obligation, notice of the assignment, indicating or containing in the
notice or in an enclosure with the notice: the name and address of the
assignee, the names of the seller and the buyer and a description of the
boat which is the subject matter of the contract or obligation
(including the make and model), the time balance of the contract, the
number and amount of installments in which the time balance is payable
and the due date or period thereof, together with the following legend
printed or typewritten in a size equal to at least eight point bold
type:

NOTICE:

1. IF THE WITHIN STATEMENT OF YOUR TRANSACTION WITH THE SELLER IS NOT
CORRECT IN EVERY RESPECT, OR

2. IF THE BOAT DESCRIBED IN OR IN AN ENCLOSURE WITH THIS NOTICE HAS
NOT BEEN DELIVERED TO YOU BY THE SELLER OR IS NOT NOW IN YOUR
POSSESSION, OR

3. IF THE SELLER HAS NOT FULLY PERFORMED ALL OF HIS AGREEMENTS WITH
YOU: YOU MUST NOTIFY THE ASSIGNEES IN WRITING AT THE ADDRESS INDICATED
IN OR IN AN ENCLOSURE WITH THIS NOTICE WITHIN TEN DAYS FROM THE DATE OF
THE MAILING OF THIS NOTICE, OTHERWISE, YOU WILL LOSE YOUR RIGHT TO
ASSERT AGAINST THE ASSIGNEE ANY RIGHT OF ACTION OR DEFENSE ARISING OUT
OF THE SALE WHICH YOU MIGHT OTHERWISE HAVE AGAINST THE SELLER.

(b) In the absence of the buyer's default, the holder may, arbitrarily
and without reasonable cause, accelerate the maturity of any part or all
of the amount owing thereunder.

(c) A power-of-attorney is given to confess judgment in this state, or
an assignment of wages is given.

(d) The seller or holder of the contract or obligation or other person
acting on his behalf is given authority to enter upon the buyer's
premises unlawfully or to commit any breach of the peace in the
repossession of goods.

(e) The buyer waives any right of action against the seller or holder
of the contract or obligation, or other person acting on his behalf, for
any illegal act committed in the collection of payments under the
contract or obligation or in the repossession of goods.

(f) The buyer executes a power-of-attorney appointing the seller or
holder of the contract or obligation, or other person acting on his
behalf, as the buyer's agent in collection of payments under the
contract or obligation or in the repossession of goods; provided,
however, that this paragraph shall not prohibit the inclusion in a
contract or obligation of a limited power of attorney or other provision
authorizing the holder to execute in the name of the buyer any proofs of
insurance claims or losses or to endorse the name of the buyer on any
insurance settlement draft or check.

(g) The buyer relieves the seller from liability for any legal
remedies which the buyer may have against the seller under the contract
or obligation or any separate instrument executed in connection
therewith.

(h) The buyer waives any right to a trial by jury in any action or
proceeding arising out of the contract or obligation.

Any such prohibited provision shall be void but shall not otherwise
affect the validity of the contract or obligation.

3. No retail instalment contract shall contain any provision by which
the maturity of any part or all of the amount owing thereon is
accelerated where, following a default consisting solely of the failure
to make timely instalment payments and the subsequent repossession of
the goods, the buyer makes timely tender of an amount which would be
sufficient to redeem the goods in the absence of such provision.

4. Except as provided in paragraph (a) of subdivision two of this
section, the assignee of a retail installment contract or obligation
shall be subject to all claims and defenses of the buyer against the
seller arising from the sale notwithstanding any agreement to the
contrary, but the assignee's liability under this subdivision shall not
exceed the amount owing to the assignee at the time the claim or defense
is asserted against the assignee.