Wisconsin § 409.404 Rights acquired by assignee; claims and defenses against assignee.

Wisconsin Statutes

§ 409.404 — Rights acquired by assignee; claims and defenses against assignee.

Wisconsin § 409.404

Ch. 409Uniform commercial code — secured transactions

Subch.subch. IV of ch. 409 SUBCHAPTER IV

RIGHTS OF 3RD PARTIES

This text of Wisconsin § 409.404 (Rights acquired by assignee; claims and defenses against assignee.) is published on Counsel Stack Legal Research, covering Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Wis. Stat. § 409.404 (2026).

Text

409.404 409.404(1) (1) 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 subs.

(2)to (5) , the rights of an assignee are subject to: 409.404(1)(a) (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 409.404(1)(b) (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 authenticated by the assignor or the assignee. 409.404(2) (2) Account debtor’s claim reduces amount owed to assignee. Subject to sub.

(3)and except as otherwise provided in sub.

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409.404
409.404(1) (1) 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 subs. (2) to (5) , the rights of an assignee are subject to:
409.404(1)(a) (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
409.404(1)(b) (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 authenticated by the assignor or the assignee.
409.404(2) (2) Account debtor’s claim reduces amount owed to assignee. Subject to sub. (3) and except as otherwise provided in sub. (4) , the claim of an account debtor against an assignor may be asserted against an assignee under sub. (1) only to reduce the amount the account debtor owes.
409.404(3) (3) 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.
409.404(4) (4) 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 had included such a statement.
409.404(5) (5) Inapplicability to health care insurance receivable. This section does not apply to an assignment of a health care insurance receivable.
[Note: 409.404 Note NOTE: The above annotation cites to the pre- 2001 Wis. Act 10 version of this chapter.]