Louisiana § 10:9-404 Rights acquired by assignee; claims and defenses against assignee

Louisiana Statutes

§ 10:9-404 — Rights acquired by assignee; claims and defenses against assignee

Louisiana·Title 10 Commercial Laws

§9-404. Rights acquired by assignee; claims and defenses against assignee

(a)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 (b) through (e) of this Section, 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 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)Account debtor's claim reduces amount owed to assignee. Subject to Subsection

(c)and except as

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§9-404. Rights acquired by assignee; claims and defenses against assignee
(a) 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 (b) through (e) of this Section, 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 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) Account debtor's claim reduces amount owed to assignee. 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) Rule for individual under other law. This Section is subject to law other than this
Chapter which 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) Omission of required statement in consumer transaction. In a consumer
transaction, if a record evidences the account debtor's obligation, law other than this Chapter
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) Inapplicability to health-care-insurance receivable. This Section does not apply
to an assignment of a health-care-insurance receivable.
{{NOTE: SEE ACTS 1988, NO. 528, §5.}}

Louisiana § 10:9-404 (Rights acquired by assignee; claims and defenses against assignee) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 1995, No. 1201, §3, eff. June 29, 1995; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.