Revised Article 9's Assignment Provisions: An Analysis

Last month's article broke the assignment provisions of Chapter 4 of Revised Article 9 into four key issues: Defenses and claims of the account debtor and what constitutes an enforceable waiver of defenses (Section 9-403) and absent a waiver, under what circumstances are the account debtor's defenses and claims cut off (Section 9-404); Modification and substitution of the assigned contract and under what circumstances are modifications and substitutions effective against the assignee (Section 9-405); Discharge of the obligation and under what circumstances can the account debtor discharge its obligation by paying the assignor or the assignee (Section 9-406(a) - (c) and (g)); and Contractual or statutory restrictions on assignment and under what circumstances can such restrictions be overridden (Sections 9-406(d)(e) and (f); 9-407; 9-408; and 9-409). This month's article will review the relevant and developing case law under Chapter 4 of Revised Article 9 and provide a checklist of "Must Do" items.

21 minute read January 06, 2006 at 09:22 AM

By

Barry A. Graynor