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U.S. Code as of:
01/19/04
Section 79z. Validity of contracts
(a) Waiver provisions
Any condition, stipulation, or provision binding any person to
waive compliance with any provision of this chapter or with any
rule, regulation, or order thereunder shall be void.
(b) Contract provisions in violation of chapter; actual knowledge
of violations
Every contract made in violation of any provision of this chapter
or of any rule, regulation, or order thereunder, and every contract
heretofore or hereafter made, the performance of which involves the
violation of, or the continuance of any relationship or practice in
violation of, any provision of this chapter, or any rule,
regulation, or order thereunder, shall be void (1) as regards the
rights of any person who, in violation of any such provision, rule,
regulation, or order, shall have made or engaged in the performance
of any such contract, and (2) as regards the rights of any person
who, not being a party to such contract, shall have acquired any
right thereunder with actual knowledge of the facts by reason of
which the making or performance of such contract was in violation
of any such provision, rule, regulation, or order.
(c) Validity of loans, extensions of credit and creation of liens;
actual knowledge of violations
Nothing in this chapter shall be construed (1) to affect the
validity of any loan or extension of credit (or any extension or
renewal thereof) made or of any lien created prior or subsequent to
the enactment of this chapter, unless at the time of the making of
such loan or extension of credit (or extension or renewal thereof)
or the creating of such lien, the person making such loan or
extension of credit (or extension or renewal thereof) or acquiring
such lien shall have actual knowledge of facts by reason of which
the making of such loan or extension of credit (or extension or
renewal thereof) or the acquisition of such lien is a violation of
the provisions of this chapter or any rule or regulation
thereunder, or (2) to afford a defense to the collection of any
debt or obligation or the enforcement of any lien by any person who
shall have acquired such debt, obligation, or lien in good faith
for value and without actual knowledge of the violation of any
provision of this chapter or any rule or regulation thereunder
affecting the legality of such debt, obligation, or lien.
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