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§12A-9-318.
§12A-9-318.
Defenses Against Assignee; Modification of Contract After Notification
of Assignment; Term Prohibiting Assignment Ineffective; Identification
and Proof of Assignment. -
(1) Unless an account debtor has made an enforceable agreement not to
assert defenses or claims arising out of a sale or lease as provided
in Section 9-206 the rights of an assignee are subject to:
(a) all the terms of the contract between the account debtor and
assignor and any defense or claim arising therefrom; and
(b) any other defense or claim of the account debtor against the
assignor which accrues before the account debtor receives notification
of the assignment.
(2) So far as the right to payment or a part thereof under an assigned
contract has not been fully earned by performance, and notwithstanding
notification of the assignment, any modification of or substitution
for the contract made in good faith and in accordance with reasonable
commercial standards is effective against an assignee unless the
account debtor has otherwise agreed but the assignee acquires
corresponding rights under the modified or substituted contract. The
assignment may provide that such modification or substitution is a
breach by the assignor.
(3) The account debtor is authorized to pay the assignor until the
account debtor receives notification that the amount due or to become
due has been assigned and that payment is to be made to the assignee.
A notification which does not reasonably identify the rights assigned
is ineffective. If requested by the account debtor, the assignee must
seasonably furnish reasonable proof that the assignment has been made,
and unless he does so, the account debtor may pay the assignor.
(4) A term in any contract between an account debtor and an assignor
is ineffective if it prohibits assignment of an account or chattel
paper or prohibits creation of a security interest in a general
intangible for money due or to become due or requires the account
debtor's consent to such assignment or security interest.
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