Missouri Laws 408.560 – Unenforceable provisions in note or credit contract
The following provisions when contained in any note or credit contract or the contract of any guarantor of a credit transaction shall be void and unenforceable:
(1) A power of attorney to confess judgment;
Terms Used In Missouri Laws 408.560
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Missouri Laws 1.020
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Property: includes real and personal property. See Missouri Laws 1.020
(2) An assignment of wages;
(3) A waiver or limitation of any exemption given by law to the borrower exempting the borrower’s property from attachment or execution, except insofar as the waiver or limitation applies to property in which the lender has been granted a security interest to secure the credit transaction;
(4) A security interest in consumer goods which are identified only as a general class of goods, such as “household goods” or “furniture”; and
(5) A waiver of any right of action against the lender or his assignee or other person acting on behalf of the lender in the collection of payments under the contract or in the repossession of goods.