Section 8-1-3 Receipt or acknowledgment for collateral required. - Alabama Statutes

Section 8-1-3

Receipt or acknowledgment for collateral required.

(a) All banking, insurance and other corporations, private bankers, brokers and other persons engaged in the business of making discounts or lending money, or taking or receiving a collateral for a loan or discount, must give to the borrower, or to his agent or attorney, if demanded, a receipt or acknowledgment in writing designating or describing the collateral taken or received and stating the character of the debt, the time of its maturity and amount for the payment of which such collateral is intended as security.

(b) If negotiable bonds are taken or received as collateral, the receipt or acknowledgment must state the series number thereof if such bonds are numbered.

(Code 1886, §1785; Code 1896, §946; Code 1907, §3301; Code 1923, §6743; Code 1940, T. 9, §9.)