Colorado § 4-9-403 Agreement not to assert defenses against assignee

Colorado Statutes

§ 4-9-403 — Agreement not to assert defenses against assignee

Colorado·Title 04 Uniform·Art. Secured Transactions

(a)In this section, value has the meaning provided in section 4-3-303 (a).

(b)Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:

(1)For value;

(2)In good faith;

(3)Without notice of a claim of a property or possessory right to the property assigned; and

(4)Without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under section 4-3-305 (a).

(c)Subsection (b) of this section does not apply to defenses of a type that may be asserted against a holder in due course of a negotia

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(a) In this
section, value has the meaning provided in section 4-3-303 (a).

(b) Except as otherwise provided in this section, an agreement between an
account debtor and an assignor not to assert against an assignee any claim or
defense that the account debtor may have against the assignor is enforceable by an
assignee that takes an assignment:

(1) For value;

(2) In good faith;

(3) Without notice of a claim of a property or possessory right to the
property assigned; and

(4) Without notice of a defense or claim in recoupment of the type that may
be asserted against a person entitled to enforce a negotiable instrument under
section 4-3-305 (a).

(c) Subsection (b) of this section does not apply to defenses of a type that
may be asserted against a holder in due course of a negotiable instrument under
section 4-3-305 (b).

(d) In a consumer transaction, if a record evidences the account debtor's
obligation, law other than this article requires that the record include a statement
to the effect that the rights of an assignee are subject to claims or defenses that
the account debtor could assert against the original obligee, and the record does
not include such a statement:

(1) The record has the same effect as if the record included such a
statement; and

(2) The account debtor may assert against an assignee those claims and
defenses that would have been available if the record included such a statement.

(e) This section is subject to law other than this article which establishes a
different rule for an account debtor who is an individual and who incurred the
obligation primarily for personal, family, or household purposes.

(f) Except as otherwise provided in subsection (d) of this section, this section
does not displace law other than this article which gives effect to an agreement by
an account debtor not to assert a claim or defense against an assignee.

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