§ 8.9A-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 not to assertdefenses or claims, and subject to subsections (b) through (e), the rights ofan assignee are subject to:
(1) all terms of the agreement between the account debtor and assignor andany defense or claim in recoupment arising from the transaction that gaverise to the contract; and
(2) any other defense or claim of the account debtor against the assignorwhich accrues before the account debtor receives a notification of theassignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed to assignee. Subject tosubsection (c) and except as otherwise provided in subsection (d), the claimof an account debtor against an assignor may be asserted against an assigneeunder subsection (a) only to reduce the amount the account debtor owes.
(c) Rule for individual under other law. This section is subject to law otherthan this title which establishes a different rule for an account debtor whois an individual and who incurred the obligation primarily for personal,family, or household purposes.
(d) Omission of required statement in consumer transaction. In a consumertransaction, if a record evidences the account debtor's obligation, law otherthan this title requires that the record include a statement to the effectthat the account debtor's recovery against an assignee with respect to claimsand defenses against the assignor may not exceed amounts paid by the accountdebtor under the record, and the record does not include such a statement,the extent to which a claim of an account debtor against the assignor may beasserted against an assignee is determined as if the record included such astatement.
(e) Inapplicability to health-care-insurance receivable. This section doesnot apply to an assignment of a health-care-insurance receivable.
(1964, c. 219, § 8.9-318; 1973, c. 509; 2000, c. 1007.)
§ 8.9A-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 not to assertdefenses or claims, and subject to subsections (b) through (e), the rights ofan assignee are subject to:
(1) all terms of the agreement between the account debtor and assignor andany defense or claim in recoupment arising from the transaction that gaverise to the contract; and
(2) any other defense or claim of the account debtor against the assignorwhich accrues before the account debtor receives a notification of theassignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed to assignee. Subject tosubsection (c) and except as otherwise provided in subsection (d), the claimof an account debtor against an assignor may be asserted against an assigneeunder subsection (a) only to reduce the amount the account debtor owes.
(c) Rule for individual under other law. This section is subject to law otherthan this title which establishes a different rule for an account debtor whois an individual and who incurred the obligation primarily for personal,family, or household purposes.
(d) Omission of required statement in consumer transaction. In a consumertransaction, if a record evidences the account debtor's obligation, law otherthan this title requires that the record include a statement to the effectthat the account debtor's recovery against an assignee with respect to claimsand defenses against the assignor may not exceed amounts paid by the accountdebtor under the record, and the record does not include such a statement,the extent to which a claim of an account debtor against the assignor may beasserted against an assignee is determined as if the record included such astatement.
(e) Inapplicability to health-care-insurance receivable. This section doesnot apply to an assignment of a health-care-insurance receivable.
(1964, c. 219, § 8.9-318; 1973, c. 509; 2000, c. 1007.)
§ 8.9A-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 not to assertdefenses or claims, and subject to subsections (b) through (e), the rights ofan assignee are subject to:
(1) all terms of the agreement between the account debtor and assignor andany defense or claim in recoupment arising from the transaction that gaverise to the contract; and
(2) any other defense or claim of the account debtor against the assignorwhich accrues before the account debtor receives a notification of theassignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed to assignee. Subject tosubsection (c) and except as otherwise provided in subsection (d), the claimof an account debtor against an assignor may be asserted against an assigneeunder subsection (a) only to reduce the amount the account debtor owes.
(c) Rule for individual under other law. This section is subject to law otherthan this title which establishes a different rule for an account debtor whois an individual and who incurred the obligation primarily for personal,family, or household purposes.
(d) Omission of required statement in consumer transaction. In a consumertransaction, if a record evidences the account debtor's obligation, law otherthan this title requires that the record include a statement to the effectthat the account debtor's recovery against an assignee with respect to claimsand defenses against the assignor may not exceed amounts paid by the accountdebtor under the record, and the record does not include such a statement,the extent to which a claim of an account debtor against the assignor may beasserted against an assignee is determined as if the record included such astatement.
(e) Inapplicability to health-care-insurance receivable. This section doesnot apply to an assignment of a health-care-insurance receivable.
(1964, c. 219, § 8.9-318; 1973, c. 509; 2000, c. 1007.)
