70A-9a-405 - Modification of assigned contract. - Utah Statutes

70A-9a-405. Modification of assigned contract.
(1) A modification of or substitution for an assigned contract is effective against anassignee if made in good faith. The assignee acquires corresponding rights under the modified orsubstituted contract. The assignment may provide that the modification or substitution is a breachof contract by the assignor. This Subsection (1) is subject to Subsections (2) through (4).
(2) Subsection (1) applies to the extent that:
(a) the right to payment or a part thereof under an assigned contract has not been fullyearned by performance; or
(b) the right to payment or a part thereof has been fully earned by performance and theaccount debtor has not received notification of the assignment under Subsection 70A-9a-406(1).
(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) This section does not apply to an assignment of a health-care-insurance receivable.

Enacted by Chapter 252, 2000 General Session