§490:9-405  Modification of assigned
contract.  (a)  A modification of or substitution for an assigned contract
is effective against an assignee if made in good faith.  The assignee acquires
corresponding rights under the modified or substituted contract.  The
assignment may provide that the modification or substitution is a breach of
contract by the assignor.  This subsection is subject to subsections (b)
through (d).



(b)  Subsection (a) applies to the extent that:



(1)  The right to payment or a part thereof under an
assigned contract has not been fully earned by performance; or



(2)  The right to payment or a part thereof has been
fully earned by performance and the account debtor has not received
notification of the assignment under section 490:9-406(a).



(c)  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.



(d)  This section does not apply to an
assignment of a health-care-insurance receivable. [L 2000, c 241, pt of §1]