§9-1401. Alienability of debtor's rights
103 words·~1 min read·
/me/title-11-uniform-commercial-code/9-1401·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1). Except as otherwise provided in subsection
(2)and sections 9‑1406 , 9‑1407 , 9‑1408 and 9‑1409 , whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this Article.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(2). An agreement between the debtor and secured party that prohibits a transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]