Texas Business & Commerce Code
§ 9.403 — AGREEMENT NOT TO ASSERT DEFENSES AGAINST ASSIGNEE
BC § 9.403Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. D. RIGHTS OF THIRD PARTIES
Statute text
View on source(a)In this section, "value" has the meaning provided in Section 3.303(a).
(b)Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:
(1)for value;
(2)in good faith;
(3)without notice of a claim of a property or possessory right to the property assigned; and
(4)without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under Section 3.305(a).
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Legislative history
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.