Truth in Lending Act (TILA): Federal law that requires lenders to provide standardized disclosures about credit terms and costs. Must be considered when the note involves consumer credit.
Fair Credit Reporting Act (FCRA): Federal law governing the collection, dissemination, and use of consumer credit information. Relevant when credit checks are performed on the assuming party.
Equal Credit Opportunity Act (ECOA): Federal law that prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or public assistance participation.
UCC Article 3: Uniform Commercial Code provisions governing negotiable instruments, including promissory notes, their transfer, and enforcement.
UCC Article 9: Uniform Commercial Code provisions governing secured transactions, applicable if the promissory note is secured by personal property.
State Contract Laws: State-specific laws governing contract formation, validity, and enforcement, including requirements for written agreements and signatures.
State Usury Laws: State-specific laws that set maximum interest rates and regulate other lending terms that can be charged on the note.
State Recording Requirements: State-specific rules for recording or filing assumption agreements, particularly important if the note is secured by real property.
Novation Principles: Legal doctrine governing the substitution of a new obligation for an existing one, central to assumption agreements.
Statute of Frauds: Legal doctrine requiring certain types of contracts to be in writing and signed to be enforceable.
Consumer Protection Laws: State and federal laws designed to protect consumers in credit transactions, including disclosure requirements and unfair practice prohibitions.
Real Property Laws: State laws governing transactions involving real estate, relevant if the promissory note is secured by real property.
