Iowa § 554.9403 Agreement not to assert defenses against assignee

Iowa Statutes

§ 554.9403 — Agreement not to assert defenses against assignee

Iowa § 554.9403

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.9403 (Agreement not to assert defenses against assignee) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.9403 (2026).

Text

1.Value. In this section, “value” has the meaning provided in section 554.3303, subsection 1.

2.Agreementnottoassertclaimordefense. Exceptasotherwiseprovidedinthissection, 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:

a.for value;

b.in good faith;

c.without notice of a claim of a property or possessory right to the property assigned; and

d.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 554.3305, subsection 1.

3.When subsection 2 not applicable. Subsection 2 does not apply to defenses of a type that may

Free access — add to your briefcase to read the full text and ask questions with AI

1. Value. In this section, “value” has the meaning provided in section 554.3303,
subsection 1.
2. Agreementnottoassertclaimordefense. Exceptasotherwiseprovidedinthissection,
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:
a. for value;
b. in good faith;
c. without notice of a claim of a property or possessory right to the property assigned; and
d. 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 554.3305,
subsection 1.
3. When subsection 2 not applicable. Subsection 2 does not apply to defenses of a type
that may be asserted against a holder in due course of a negotiable instrument under section
554.3305, subsection 2.
4. Omission of required statement in consumer transaction. 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:
a. the record has the same effect as if the record included such a statement; and
b. theaccountdebtormayassertagainstanassigneethoseclaimsanddefensesthatwould
have been available if the record included such a statement.
5. Ruleforindividualunderotherlaw. ThissectionissubjecttolawotherthanthisArticle
whichestablishesadifferentruleforanaccountdebtorwhoisanindividualandwhoincurred
the obligation primarily for personal, family, or household purposes.
6. Other law not displaced. Except as otherwise provided in subsection 4, 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.