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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

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(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).

Legislative history

Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.

Source: Texas Business & Commerce Code § 9.403 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.