State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-9-404

§25‑9‑404.  Rights acquired by assignee; claims and defenses againstassignee.

(a)        Assignee's rightssubject to terms, claims, and defenses; exceptions. – Unless an account debtorhas made an enforceable agreement not to assert defenses or claims, and subjectto subsections (b) through (e) of this section, the rights of an assignee aresubject to:

(1)        All terms of theagreement between the account debtor and assignor and any defense or claim inrecoupment arising from the transaction that gave rise to the contract; and

(2)        Any other defense orclaim of the account debtor against the assignor which accrues before theaccount debtor receives a notification of the assignment authenticated by theassignor or the assignee.

(b)        Account debtor'sclaim reduces amount owed to assignee. – Subject to subsection (c) of thissection and except as otherwise provided in subsection (d) of this section, theclaim of an account debtor against an assignor may be asserted against anassignee under subsection (a) of this section only to reduce the amount theaccount debtor owes.

(c)        Rule for individualunder other law. – This section is subject to law other than this Article whichestablishes a different rule for an account debtor who is an individual and whoincurred the obligation primarily for personal, family, or household purposes.

(d)        Omission ofrequired statement in consumer transaction. – In a consumer transaction, if arecord evidences the account debtor's obligation, law other than this Articlerequires that the record include a statement to the effect that the accountdebtor's recovery against an assignee with respect to claims and defensesagainst the assignor may not exceed amounts paid by the account debtor underthe record, and the record does not include such a statement, the extent towhich a claim of an account debtor against the assignor may be asserted againstan assignee is determined as if the record included such a statement.

(e)        Inapplicability tohealth‑care‑insurance receivable. – This section does not apply toan assignment of a health‑care‑insurance receivable. (1945,c. 196, s. 6; 1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169,s. 1.)

State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-9-404

§25‑9‑404.  Rights acquired by assignee; claims and defenses againstassignee.

(a)        Assignee's rightssubject to terms, claims, and defenses; exceptions. – Unless an account debtorhas made an enforceable agreement not to assert defenses or claims, and subjectto subsections (b) through (e) of this section, the rights of an assignee aresubject to:

(1)        All terms of theagreement between the account debtor and assignor and any defense or claim inrecoupment arising from the transaction that gave rise to the contract; and

(2)        Any other defense orclaim of the account debtor against the assignor which accrues before theaccount debtor receives a notification of the assignment authenticated by theassignor or the assignee.

(b)        Account debtor'sclaim reduces amount owed to assignee. – Subject to subsection (c) of thissection and except as otherwise provided in subsection (d) of this section, theclaim of an account debtor against an assignor may be asserted against anassignee under subsection (a) of this section only to reduce the amount theaccount debtor owes.

(c)        Rule for individualunder other law. – This section is subject to law other than this Article whichestablishes a different rule for an account debtor who is an individual and whoincurred the obligation primarily for personal, family, or household purposes.

(d)        Omission ofrequired statement in consumer transaction. – In a consumer transaction, if arecord evidences the account debtor's obligation, law other than this Articlerequires that the record include a statement to the effect that the accountdebtor's recovery against an assignee with respect to claims and defensesagainst the assignor may not exceed amounts paid by the account debtor underthe record, and the record does not include such a statement, the extent towhich a claim of an account debtor against the assignor may be asserted againstan assignee is determined as if the record included such a statement.

(e)        Inapplicability tohealth‑care‑insurance receivable. – This section does not apply toan assignment of a health‑care‑insurance receivable. (1945,c. 196, s. 6; 1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169,s. 1.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-9-404

§25‑9‑404.  Rights acquired by assignee; claims and defenses againstassignee.

(a)        Assignee's rightssubject to terms, claims, and defenses; exceptions. – Unless an account debtorhas made an enforceable agreement not to assert defenses or claims, and subjectto subsections (b) through (e) of this section, the rights of an assignee aresubject to:

(1)        All terms of theagreement between the account debtor and assignor and any defense or claim inrecoupment arising from the transaction that gave rise to the contract; and

(2)        Any other defense orclaim of the account debtor against the assignor which accrues before theaccount debtor receives a notification of the assignment authenticated by theassignor or the assignee.

(b)        Account debtor'sclaim reduces amount owed to assignee. – Subject to subsection (c) of thissection and except as otherwise provided in subsection (d) of this section, theclaim of an account debtor against an assignor may be asserted against anassignee under subsection (a) of this section only to reduce the amount theaccount debtor owes.

(c)        Rule for individualunder other law. – This section is subject to law other than this Article whichestablishes a different rule for an account debtor who is an individual and whoincurred the obligation primarily for personal, family, or household purposes.

(d)        Omission ofrequired statement in consumer transaction. – In a consumer transaction, if arecord evidences the account debtor's obligation, law other than this Articlerequires that the record include a statement to the effect that the accountdebtor's recovery against an assignee with respect to claims and defensesagainst the assignor may not exceed amounts paid by the account debtor underthe record, and the record does not include such a statement, the extent towhich a claim of an account debtor against the assignor may be asserted againstan assignee is determined as if the record included such a statement.

(e)        Inapplicability tohealth‑care‑insurance receivable. – This section does not apply toan assignment of a health‑care‑insurance receivable. (1945,c. 196, s. 6; 1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169,s. 1.)