§ 41-09-65 — (9-403) Agreement not to assert defenses against assignee

1. In this section, "value" has the meaning provided in subsection 1 of section 41-03-29.
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
subsection 1 of section 41-03-31.
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 subsection 2 of section
41-03-31.
4. 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 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:
a. The record has the same effect as if the record included 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 included such a statement.
5. 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.
6. Except as otherwise provided in subsection 4, this section does not displace law other
than this chapter which gives effect to an agreement by an account debtor not to
assert a claim or defense against an assignee.