Ohio § 1309.405 Modification of assigned contract - UCC 9-405

Ohio Statutes

§ 1309.405 — Modification of assigned contract - UCC 9-405

Ohio § 1309.405

Title 13Commercial Transactions

Ch. 1309Secured Transactions

This text of Ohio § 1309.405 (Modification of assigned contract - UCC 9-405) is published on Counsel Stack Legal Research, covering Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ohio Rev. Code Ann. § 1309.405 (2026).

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 division is subject to divisions (B) to (D) of this section.

(B)Division (A) of this section 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 division (A) of section1309.406of the Revised Code.

(C)This section is subject to l

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(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 division is subject to divisions (B) to (D) of this section.

(B) Division (A) of this section 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 division (A) of section1309.406of the Revised Code.

(C) 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.

(D) This section does not apply to an assignment of a health-care-insurance receivable.