Indiana § 26-1-9.1-404 Rights acquired by assignee; claims and defenses against assignee

Indiana Statutes

§ 26-1-9.1-404 — Rights acquired by assignee; claims and defenses against assignee

Indiana § 26-1-9.1-404

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 9.1Secured Transactions

This text of Indiana § 26-1-9.1-404 (Rights acquired by assignee; claims and 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 § 26-1-9.1-404 (2026).

Text

(a)Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:

(1)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

(2)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.

(b)Subject to subsection (c) and except as otherwise provided in subsection (d), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) only to reduce the amount the account debtor owes.

(c)T

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(a) Unless an account debtor has made an
enforceable agreement not to assert defenses or claims, and subject to
subsections (b) through (e), the rights of an assignee are subject to:
(1) 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
(2) 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.
(b) Subject to subsection (c) and except as otherwise provided in
subsection (d), the claim of an account debtor against an assignor may
be asserted against an assignee under subsection (a) only to reduce the
amount the account debtor owes.
(c) 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.
(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 account debtor's recovery
against an assignee with respect to claims and defenses against the
assignor may not exceed amounts paid by the account debtor under the
record, and the record does not include such a statement, 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.
(e) This section does not apply to an assignment of a
health-care-insurance receivable.