1.  Notice required.  A consumer is not obligated as a cosigner, as that term is defined in section 1‑301, subsection 14‑A, with respect to a consumer credit transaction, unless, before or contemporaneously with signing any separate agreement or any writing setting forth the terms of the debtor's agreement or in the case of an open-end account or plan prior to the first extension of credit pursuant to the plan, the consumer receives a written notice conforming to the requirements of subsection 2 and the following notices required to be given to the debtor as applicable:  

2.  Form of notice.  The notice required by subsection 1 shall be clear and conspicuous and shall contain the following information:  

3.  Exception.  The notice required by this section need not be given to a seller, lessor or lender who is obligated to an assignee of his rights.  

4.  Copy of agreement.  A person entitled to notice under this section shall be given a copy of any writing setting forth the terms of the debtor's agreement and any separate agreement signed by the person entitled to the notice.  

5.  Priority for collection.  A creditor may not begin a legal action against a person entitled to notice under this section until he has exercised due diligence to collect the debt from the debtor. This subsection does not apply if the person is jointly and severally liable with respect to the transaction.  

6.  Definitions. 

7.  Application.  This section applies to all consumer credit transactions and open-end credit plans entered into after October 1, 1982.  

8.  Notice not required where cosigners given notice in conformance with certain federal regulations.  The notice described in subsection 2 is not required in any consumer credit transaction or open-end credit plan in which the creditor gives a notice to cosigners in the form set forth in regulations promulgated by the Federal Trade Commission, the Federal Reserve Board or the Federal Home Loan Bank Board.