§ 554.9404 — Rights acquired by assignee — claims and defenses against assignee

Iowa § 554.9404

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Assignee’s rights subject to terms, claims, and defenses — exceptions. Unless an
account debtor has made an enforceable agreement not to assert defenses or claims, 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 defense
or 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 accrues
before the account debtor receives a notification of the assignment signed by the assignor or
the assignee.
2. Account debtor’s claim reduces amount owed to assignee. Subject to subsection 3
and except as otherwise provided in subsection 4, the claim of an account debtor against an
assignor may be asserted against an assignee under subsection 1 only to reduce the amount
the account debtor owes.
3. Ruleforindividualunderotherlaw. ThissectionissubjecttolawotherthanthisArticle
whichestablishesadifferentruleforanaccountdebtorwhoisanindividualandwhoincurred
the obligation primarily for personal, family, or household purposes.
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 account debtor’s recovery against an
assignee with respect to claims and defenses against the assignor may not exceed amounts
paidbytheaccountdebtorundertherecord,andtherecorddoesnotincludesuchastatement,
the extent to which a claim of an account debtor against the assignor may be asserted against
an assignee is determined as if the record included such a statement.

5. Inapplicability to health care insurance receivable. This section does not apply to an
assignment of a health care insurance receivable.