§ 6A-9-405 - Modification of assigned contract. - Rhode Island Statutes

SECTION 6A-9-405

   § 6A-9-405  Modification of assignedcontract. – (a) Effect of modification on assignee. A modification of orsubstitution for an assigned contract is effective against an assignee if madein good faith. The assignee acquires corresponding rights under the modified orsubstituted contract. The assignment may provide that the modification orsubstitution is a breach of contract by the assignor. This subsection issubject 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 assignedcontract has not been fully earned by performance; or

   (2) The right to payment or a part thereof has been fullyearned by performance and the account debtor has not received notification ofthe assignment under § 6A-9-406(a).

   (c) Rule for individual under other law. This sectionis subject to law other than this chapter which establishes a different rulefor an account debtor who is an individual and who incurred the obligationprimarily for personal, family, or household purposes.

   (d) Inapplicability to health-care-insurancereceivable. This section does not apply to an assignment of ahealth-care-insurance receivable.