§ 34.1-9-406 — Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective

Wyoming § 34.1-9-406

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 9: SECURED TRANSACTIONS

Text

(a) Subject to subsections (b) through (j), an account
debtor on an account, chattel paper or a payment intangible may
discharge its obligation by paying the assignor until, but not
after, the account debtor receives a notification, authenticated
by the assignor or the assignee, that the amount due or to
become due has been assigned and that payment is to be made to
the assignee. After receipt of the notification, the account
debtor may discharge its obligation by paying the assignee and
may not discharge the obligation by paying the assignor.
(b) Subject to subsection (h), notification is ineffective
under subsection (a):
(i) If it does not reasonably identify the rights
assigned;
(ii) To the extent that an agreement between an
account debtor and a seller of a payment intangible limits the
account debtor's duty to pay a person other than the seller and
the limitation is effective under law other than this article;
or
(iii) At the option of an account debtor, if the
notification notifies the account debtor to make less than the
full amount of any installment or other periodic payment to the
assignee, even if:
(A) Only a portion of the account, chattel paper
or payment intangible has been assigned to that assignee;
(B) A portion has been assigned to another
assignee; or
(C) The account debtor knows that the assignment
to that assignee is limited.
(c) Subject to subsection (h), if requested by the account
debtor, an assignee shall seasonably furnish reasonable proof
that the assignment has been made. Unless the assignee
complies, the account debtor may discharge its obligation by
paying the assignor, even if the account debtor has received a
notification under subsection (a).
(d) Except as otherwise provided in subsection (e) and
sections 34.1-2A-303 and 34.1-9-407, and subject to subsection
(h), a term in an agreement between an account debtor and an
assignor or in a promissory note is ineffective to the extent
that it:
(i) Prohibits, restricts or requires the consent of
the account debtor or person obligated on the promissory note to
the assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the
account, chattel paper, payment intangible or promissory note;
or
(ii) Provides that the assignment or transfer or the
creation, attachment, perfection or enforcement of the security
interest may give rise to a default, breach, right of
recoupment, claim, defense, termination right of termination, or
remedy under the account, chattel paper, payment intangible or
promissory note.
(e) Subsection (d) does not apply to the sale of a payment
intangible or promissory note, other than a sale pursuant to a
disposition under W.S. 34.1-9-610 or an acceptance of collateral
under W.S. 34.1-9-620.
(f) Except as otherwise provided in sections 34.1-2A-303
and 34.1-9-407 and subject to subsections (h) and (j), a rule of
law, statute or regulation that prohibits, restricts or requires
the consent of a government, governmental body or official or
account debtor to the assignment or transfer of, or creation of
a security interest in, an account or chattel paper is
ineffective to the extent that the rule of law, statute or
regulation:
(i) Prohibits, restricts or requires the consent of
the government, governmental body or official, or account debtor
to the assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in the account
or chattel paper; or
(ii) Provides that the assignment or transfer or the
creation, attachment, perfection or enforcement of the security
interest may give rise to a default, breach, right of
recoupment, claim, defense, termination, right of termination or
remedy under the account or chattel paper.
(g) Subject to subsection (h), an account debtor may not
waive or vary its option under paragraph (b)(iii).
(h) This section is subject to law other than this article
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.
(j) This section prevails over any inconsistent provision
of an existing or future statute, rule or regulation of this
state unless the provision is contained in a statute of this
state, refers expressly to this section and states that the
provision prevails over this section. Subsection (f) of this
section does not apply to an assignment or transfer of, or the
creation, attachment, perfection or enforcement of a security
interest in, a right the transfer of which is prohibited or
restricted by any of the following statutes to the extent that
the statute is inconsistent with subsection (f) of this section:
W.S. 1-40-113, 26-15-132 and 27-14-702.
(k) Except to the extent otherwise provided in subsection
(j), this section prevails over any inconsistent provision of an
existing or future statute, rule or regulation of this state
unless the provision is contained in a statute of this state,
refers expressly to this section and states that the provision
prevails over this section.