§ 41-09-66 — (9-404) Rights acquired by assignee - Claims and defenses against assignee

North Dakota § 41-09-66

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

assignee.
1. Unless an account debtor has made an enforceable agreement not to assert defenses
or claims, and subject to subsections 2 through 5, the rights of an assignee are subject
to:
a. 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
b. 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.
2. Subject to subsection 3 and except as otherwise provided in subsection 4, the claim of
an account debtor against an assignor may be asserted against an assignee under
subsection 1 only to reduce the amount the account debtor owes.
3. 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.
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 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.
5. This section does not apply to an assignment of a health care insurance receivable.