§ 9-405. 9-405
186 words·~1 min read·
/us/ucc/a9/s9-405A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)[Effect of modification on assignee.] A modification of or substitution for an assigned contract is effective against an assignee if made in good faith . The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subsections
(b)through (d).
(b)[Applicability of subsection (a).] Subsection
(a)applies to the extent that:
(1)the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or
(2)the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under Section 9-406(a) .
(c)[Rule for individual under other law.] This section is subject to law other than this article which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
(d)[Inapplicability to health-care-insurance receivable.] This section does not apply to an assignment of a health-care-insurance receivable .