Indiana § 26-1-9.1-403 Agreement not to assert defenses against assignee

Indiana Statutes

§ 26-1-9.1-403 — Agreement not to assert defenses against assignee

Indiana § 26-1-9.1-403

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 9.1Secured Transactions

This text of Indiana § 26-1-9.1-403 (Agreement not to assert defenses against assignee) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-9.1-403 (2026).

Text

(a)As used in this section, "value" has the meaning provided in IC 26-1-3-303(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 IC 26-1-3.1-305(a).

(c)Subsection (b) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under IC

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(a) As used in this section, "value" has
the meaning provided in IC 26-1-3-303(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 IC 26-1-3.1-305(a).
(c) Subsection (b) does not apply to defenses of a type that may be
asserted against a holder in due course of a negotiable instrument under
IC 26-1-3.1-305(b).
(d) In a consumer transaction, if a record evidences the account
debtor's obligation, law other than IC 26-1-9.1 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 IC 26-1-9.1 that
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), this section does
not displace law other than IC 26-1-9.1 which gives effect to an
agreement by an account debtor not to assert a claim or defense against
an assignee.