Printable Format16a-2-307.
History: L. 1973, ch. 85, § 24; L. 1999, ch. 107, § 14; Repealed, L. 2024, ch. 6, § 120; January 1, 2025.
KANSAS COMMENT, 2000
Under this section, no supervised loan with respect to which the amount financed is $3,000 or less may include a security interest in land. The purpose of this section is to deny the lender in a relatively small loan transaction the great leverage that results from a security interest in land. This section forbids transactions such as the second mortgage on a consumer's home taken as "back-up" collateral for a high-rate consolidation loan. This is the only limit on direct lender collateral under the U3C, except for the blanket prohibition against wage assignments in K.S.A. 16a-3-305. Much greater restrictions on taking security are imposed on consumer credit sellers and lessors. See the Kansas comment to K.S.A. 16a-3-301.
Law Review and Bar Journal References:
"The New Kansas Consumer Legislation," Barkley Clark, 42 J.B.A.K. 147, 198 (1973).
"Survey of Kansas Law: Consumer Law," John C. Maloney, 27 K.L.R. 197, 201 (1979).
"Commercial Transactions Under the New Bankruptcy Act," Paul B. Rasor, 48 J.B.A.K. 199, 211 (1979).
"The Uniform Consumer Credit Code and Real Estate Financing—A Square Peg in a Round Hole," Thomas L. Griswold, 28 K.L.R. 601, 614 (1980).
"History & Overview of the Uniform Consumer Credit Code," Ryan E. Hodge, J.K.T.L.A. Vol. XXVI, No. 3, 8 (2003).