70A-9a-404 - Rights acquired by assignee -- Claims and defenses against assignee. - Utah Statutes

70A-9a-404. Rights acquired by assignee -- Claims and defenses against assignee.
(1) Unless an account debtor has made an enforceable agreement not to assert defenses orclaims, and subject to Subsections (2) through (5), the rights of an assignee are subject to:
(a) all terms of the agreement between the account debtor and assignor and any defenseor claim in recoupment arising from the transaction that gave rise to the contract; and
(b) any other defense or claim of the account debtor against the assignor which accruesbefore the account debtor receives a notification of the assignment authenticated by the assignoror the assignee.
(2) Subject to Subsection (3) and except as otherwise provided in Subsection (4), theclaim of an account debtor against an assignor may be asserted against an assignee underSubsection (1) only to reduce the amount the account debtor owes.
(3) This section is subject to law other than this chapter which establishes a different rulefor an account debtor who is an individual and who incurred the obligation primarily for personal,family, or household purposes.
(4) In a consumer transaction, if a record evidences the account debtor's obligation, lawother than this chapter requires that the record include a statement to the effect that the accountdebtor's recovery against an assignee with respect to claims and defenses against the assignor maynot exceed amounts paid by the account debtor under the record, and the record does not includesuch a statement, the extent to which a claim of an account debtor against the assignor may beasserted against an assignee is determined as if the record included such a statement.
(5) This section does not apply to an assignment of a health-care-insurance receivable.

Enacted by Chapter 252, 2000 General Session