§ 6A-9-404 Rights acquired by assignee;claims and defenses against assignee. – (a) Assignee's rights subject to terms, claims, and defenses;exceptions. Unless an account debtor has made an enforceable agreement notto assert defenses or claims, and subject to subsections (b) through (e), therights of an assignee are subject to:
(1) All terms of the agreement between the account debtor andassignor and any defense or claim in recoupment arising from the transactionthat gave rise to the contract; and
(2) Any other defense or claim of the account debtor againstthe assignor which accrues before the account debtor receives a notification ofthe assignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed toassignee. Subject to subsection (c) and except as otherwise provided insubsection (d), the claim of an account debtor against an assignor may beasserted against an assignee under subsection (a) only to reduce the amount theaccount debtor owes.
(c) Rule for individual under other law. This sectionis subject to law other than this chapter which establishes a different rulefor an account debtor who is an individual and who incurred the obligationprimarily for personal, family, or household purposes.
(d) Omission of required statement in consumertransaction. In a consumer transaction, if a record evidences the accountdebtor's obligation, law other than this chapter requires that the recordinclude a statement to the effect that the account debtor's recovery against anassignee with respect to claims and defenses against the assignor may notexceed amounts paid by the account debtor under the record, and the record doesnot include such a statement, the extent to which a claim of an account debtoragainst the assignor may be asserted against an assignee is determined as ifthe record included such a statement.
(e) Inapplicability to health-care-insurancereceivable. This section does not apply to an assignment of ahealth-care-insurance receivable.
§ 6A-9-404 Rights acquired by assignee;claims and defenses against assignee. – (a) Assignee's rights subject to terms, claims, and defenses;exceptions. Unless an account debtor has made an enforceable agreement notto assert defenses or claims, and subject to subsections (b) through (e), therights of an assignee are subject to:
(1) All terms of the agreement between the account debtor andassignor and any defense or claim in recoupment arising from the transactionthat gave rise to the contract; and
(2) Any other defense or claim of the account debtor againstthe assignor which accrues before the account debtor receives a notification ofthe assignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed toassignee. Subject to subsection (c) and except as otherwise provided insubsection (d), the claim of an account debtor against an assignor may beasserted against an assignee under subsection (a) only to reduce the amount theaccount debtor owes.
(c) Rule for individual under other law. This sectionis subject to law other than this chapter which establishes a different rulefor an account debtor who is an individual and who incurred the obligationprimarily for personal, family, or household purposes.
(d) Omission of required statement in consumertransaction. In a consumer transaction, if a record evidences the accountdebtor's obligation, law other than this chapter requires that the recordinclude a statement to the effect that the account debtor's recovery against anassignee with respect to claims and defenses against the assignor may notexceed amounts paid by the account debtor under the record, and the record doesnot include such a statement, the extent to which a claim of an account debtoragainst the assignor may be asserted against an assignee is determined as ifthe record included such a statement.
(e) Inapplicability to health-care-insurancereceivable. This section does not apply to an assignment of ahealth-care-insurance receivable.
§ 6A-9-404 Rights acquired by assignee;claims and defenses against assignee. – (a) Assignee's rights subject to terms, claims, and defenses;exceptions. Unless an account debtor has made an enforceable agreement notto assert defenses or claims, and subject to subsections (b) through (e), therights of an assignee are subject to:
(1) All terms of the agreement between the account debtor andassignor and any defense or claim in recoupment arising from the transactionthat gave rise to the contract; and
(2) Any other defense or claim of the account debtor againstthe assignor which accrues before the account debtor receives a notification ofthe assignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed toassignee. Subject to subsection (c) and except as otherwise provided insubsection (d), the claim of an account debtor against an assignor may beasserted against an assignee under subsection (a) only to reduce the amount theaccount debtor owes.
(c) Rule for individual under other law. This sectionis subject to law other than this chapter which establishes a different rulefor an account debtor who is an individual and who incurred the obligationprimarily for personal, family, or household purposes.
(d) Omission of required statement in consumertransaction. In a consumer transaction, if a record evidences the accountdebtor's obligation, law other than this chapter requires that the recordinclude a statement to the effect that the account debtor's recovery against anassignee with respect to claims and defenses against the assignor may notexceed amounts paid by the account debtor under the record, and the record doesnot include such a statement, the extent to which a claim of an account debtoragainst the assignor may be asserted against an assignee is determined as ifthe record included such a statement.
(e) Inapplicability to health-care-insurancereceivable. This section does not apply to an assignment of ahealth-care-insurance receivable.
