400.9-403. Agreement not to assert defenses against assignee. - Missouri Statutes

Agreement not to assert defenses against assignee.

400.9-403. (a) In this section, "value" has the meaning provided insection 400.3-303(a).

(b) Except as otherwise provided in this section, an agreementbetween an account debtor and an assignor not to assert against an assigneeany claim or defense that the account debtor may have against the assignoris enforceable by an assignee that takes an assignment:

(1) For value;

(2) In good faith;

(3) Without notice of a claim of a property or possessory right tothe property assigned; and

(4) Without notice of a defense or claim in recoupment of the typethat may be asserted against a person entitled to enforce a negotiableinstrument under section 400.3-305(a).

(c) Subsection (b) does not apply to defenses of a type that may beasserted against a holder in due course of a negotiable instrument undersection 400.3-305(b).

(d) In a consumer transaction, if a record evidences the accountdebtor's obligation, law other than this article requires that the recordinclude a statement to the effect that the rights of an assignee aresubject to claims or defenses that the account debtor could assert againstthe original obligee, and the record does not 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 claimsand defenses that would have been available if the record included such astatement.

(e) This section is subject to law other than this article whichestablishes a different rule for an account debtor who is an individual andwho incurred the obligation primarily for personal, family, or householdpurposes.

(f) Except as otherwise provided in subsection (d), this section doesnot displace law other than this article which gives effect to an agreementby an account debtor not to assert a claim or defense against an assignee.

(L. 1963 p. 503 § 9-403, A.L. 1965 p. 595, A.L. 1978 S.B. 755, A.L. 1988 S.B. 583, A.L. 2001 S.B. 288)

Effective 7-01-01