§ 26-1-9.1-405 — Modification of assigned contract

Indiana § 26-1-9.1-405

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) A modification of or substitution for
an assigned contract is effective against an assignee if made in good
faith. The assignee acquires corresponding rights under the modified
or substituted contract. The assignment may provide that the
modification or substitution is a breach of contract by the assignor.
This subsection is subject to subsections (b) through (d).
(b) Subsection (a) applies to the extent that:
(1) the right to payment or a part thereof under an assigned
contract has not been fully earned by performance; or
(2) the right to payment or a part thereof has been fully earned by
performance and the account debtor has not received notification
of the assignment under IC 26-1-9.1-406(a).
(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) This section does not apply to an assignment of a
health-care-insurance receivable.

Legislative History

As added by P.L.57-2000, SEC.45.