8.9A-403 - A-403. Agreement not to assert defenses against assignee.
§ 8.9A-403. Agreement not to assert defenses against assignee.
(a) "Value." In this section, "value" has the meaning provided in §8.3A-303 (a).
(b) Agreement not to assert claim or defense. Except as otherwise provided inthis section, an agreement between an account debtor and an assignor not toassert against an assignee any claim or defense that the account debtor mayhave against the assignor is enforceable by an assignee that takes anassignment:
(1) for value;
(2) in good faith;
(3) without notice of a claim of a property or possessory right to theproperty assigned; and
(4) without notice of a defense or claim in recoupment of the type that maybe asserted against a person entitled to enforce a negotiable instrumentunder § 8.3A-305 (a).
(c) When subsection (b) not applicable. Subsection (b) does not apply todefenses of a type that may be asserted against a holder in due course of anegotiable instrument under § 8.3A-305 (b).
(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 rights of an assignee are subject to claims or defenses that theaccount debtor could assert against the original obligee, and the record doesnot include such a statement:
(1) the record has the same effect as if the record included such astatement; and
(2) the account debtor may assert against an assignee those claims anddefenses that would have been available if the record included such astatement.
(e) 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.
(f) Other law not displaced. Except as otherwise provided in subsection (d),this section does not displace law other than this title which gives effectto an agreement by an account debtor not to assert a claim or defense againstan assignee.
(1964, c. 219, § 8.9-206; 2000, c. 1007.)