400.9-408. Restrictions on assignment of promissory notes, health care insurance receivables, and certain general intangibles ineffective.

MISSOURI STATUTES AND CODES

400.9-408. Restrictions on assignment of promissory notes, health care insurance receivables, and certain general intangibles ineffective.

Restrictions on assignment of promissory notes, health care insurancereceivables, and certain general intangibles ineffective.

400.9-408. (a) Except as otherwise provided in subsection (b), aterm in a promissory note or in an agreement between an account debtor anda debtor which relates to a health-care-insurance receivable or a generalintangible, including a contract, permit, license, or franchise, and whichterm prohibits, restricts, or requires the consent of the person obligatedon the promissory note or the account debtor to, the assignment or transferof, or creation, attachment, or perfection of a security interest in, thepromissory note, health-care-insurance receivable, or general intangible,is ineffective to the extent that the term:

(1) Would impair the creation, attachment, or perfection of asecurity interest; or

(2) Provides that the assignment or transfer or the creation,attachment, or perfection of the security interest may give rise to adefault, breach, right of recoupment, claim, defense, termination, right oftermination, or remedy under the promissory note, health-care-insurancereceivable, or general intangible.

(b) Subsection (a) applies to a security interest in a paymentintangible or promissory note only if the security interest arises out of asale of the payment intangible or promissory note.

(c) A rule of law, statute, or regulation that prohibits, restricts,or requires the consent of a government, governmental body or official,person obligated on a promissory note, or account debtor to the assignmentor transfer of, or creation of a security interest in, a promissory note,health-care-insurance receivable, or general intangible, including acontract, permit, license, or franchise between an account debtor and adebtor, is ineffective to the extent that the rule of law, statute, orregulation:

(1) Would impair the creation, attachment, or perfection of asecurity interest; or

(d) To the extent that a term in a promissory note or in an agreementbetween an account debtor and a debtor which relates to ahealth-care-insurance receivable or general intangible or a rule of law,statute, or regulation described in subsection (c) would be effective underlaw other than this article but is ineffective under subsection (a) or (c),the creation, attachment, or perfection of a security interest in thepromissory note, health-care-insurance receivable, or general intangible:

(1) Is not enforceable against the person obligated on the promissorynote or the account debtor;

(2) Does not impose a duty or obligation on the person obligated onthe promissory note or the account debtor;

(3) Does not require the person obligated on the promissory note orthe account debtor to recognize the security interest, pay or renderperformance to the secured party, or accept payment or performance from thesecured party;

(4) Does not entitle the secured party to use or assign the debtor'srights under the promissory note, health-care-insurance receivable, orgeneral intangible, including any related information or materialsfurnished to the debtor in the transaction giving rise to the promissorynote, health-care-insurance receivable, or general intangible;

(5) Does not entitle the secured party to use, assign, possess, orhave access to any trade secrets or confidential information of the personobligated on the promissory note or the account debtor; and

(6) Does not entitle the secured party to enforce the securityinterest in the promissory note, health-care-insurance receivable, orgeneral intangible.

(e) This section prevails over any inconsistent provisions of anystatutes, rules, and regulations.