(1) Except as provided in Subsection (2), parties may execute an agreement or stipulation to confess judgment before a default giving rise to an action.
(2)
(a) In an employment contract or a consumer credit contract, an agreement or stipulation to confess judgment is void if the agreement or stipulation is executed:
(i) on or after May 14, 2019; and
(ii) before a default giving rise to an action in which the judgment under the agreement or stipulation is to be confessed.
(b) To satisfy the requirements of Subsection (2)(a)(ii), the parties need only execute the agreement or stipulation after the default giving rise to the underlying action and not after any subsequent default on the agreement or stipulation.