California Commercial Code

§ 9404

COM § 9404 Effective Jan 1, 2024Div. 9 · Ch. 4

Statute text

(a)Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subdivisions (b) to (e), inclusive, the rights of an assignee are subject to both of the following:

(1)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.

(2)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.

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Legislative history

Amended by Stats. 2023, Ch. 210, Sec. 56. (SB 95) Effective January 1, 2024.