California Commercial Code

§ 9405

COM § 9405 Effective Jan 1, 2001Div. 9 · Ch. 4

Statute 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 subdivision is subject to subdivisions (b) to (d), inclusive.

(b)Subdivision (a) applies to the extent that either of the following apply:

(1)The right to payment or a part thereof under an assigned contract has not been fully earned by performance.

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Legislative history

Repealed (by Sec. 25) and added by Stats. 2000, Ch. 1003, Sec. 26. Effective January 1, 2001. Operative July 1, 2001, by Sec. 56 of Ch. 1003.