Montana § 30-9A-403 Agreement Not To Assert Defense Against Assignee

Montana Statutes

§ 30-9A-403 — Agreement Not To Assert Defense Against Assignee

Montana § 30-9A-403

Title 30TRADE AND COMMERCE

Ch. 9AUNIFORM COMMERCIAL CODE SECURED TRANSACTIONS

Part 4Rights of Third Parties

This text of Montana § 30-9A-403 (Agreement Not To Assert Defense Against Assignee) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 30-9A-403 (2026).

Text

30-9A-403 . Agreement not to assert defense against assignee.

(1)In this section, "value" has the meaning provided in 30-3-303 (1).

(2)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:

(a)for value;

(b)in good faith;

(c)without notice of a claim of a property or possessory right to the property assigned; and

(d)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 30-3-305 (1).

(3)Subsection (2) does not apply to defenses of a type that may be asserted against a holder in due

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30-9A-403 . Agreement not to assert defense against assignee. (1) In this section, "value" has the meaning provided in 30-3-303 (1).
(2) 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:
(a) for value;
(b) in good faith;
(c) without notice of a claim of a property or possessory right to the property assigned; and
(d) 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 30-3-305 (1).
(3) Subsection (2) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under 30-3-305 (2).
(4) In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter requires that the record provide a statement to the effect that the rights of an assignee are subject to claims or defenses that the consumer debtor could assert against the original obligee, and the record does not provide such a statement:
(a) the record has the same effect as if the record provided such a statement; and
(b) the account debtor may assert against an assignee those claims and defenses that would have been available if the record provided such a statement.
(5) This section is subject to law other than this chapter 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.
(6) Except as otherwise provided in subsection (4), this section does not displace law other than this chapter that gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.