(b) Except as otherwise provided in this section, an agreement between an account
debtor and an assignor not to assert against an assignee any claim or defense that
the account debtor may have against the assignor is enforceable by an assignee that
takes an assignment:
(1) For value;
(2) In good faith;
(3) Without notice of a claim of a property or possessory right to the property assigned;
(4) Without notice of a defense or claim in recoupment of the type that may be asserted
against a person entitled to enforce a negotiable instrument under section 490:3-305(a).
(c) Subsection (b) does not apply to defenses of a type that may be asserted against
a holder in due course of a negotiable instrument under section 490:3-305(b).
(d) In a consumer transaction, if a record evidences the account debtor's obligation,
law other than this article requires that the record include a statement to the effect
that the rights of an assignee are subject to claims or defenses that the account
debtor could assert against the original obligee, and the record does not include
such a statement:
(1) The record has the same effect as if the record included such a statement; and
(2) The account debtor may assert against an assignee those claims and defenses that
would have been available if the record included such a statement.
(e) This section is subject to law other than this article which establishes a different
rule for an account debtor who is an individual and who incurred the obligation primarily
for personal, family, or household purposes.
(f) Except as otherwise provided in subsection (d), this section does not displace
law other than this article which gives effect to an agreement by an account debtor
not to assert a claim or defense against an assignee.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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