§ 554.9403

554.9403 Agreement not to assert defenses against assignee. 1. Value. In this section, 'value' has the meaning provided in section 554.3303, subsection 1. 2. Agreement not to assert claim or defense. Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assigneeany claim or defense that the account debtor may have against the assignor is enforceable byan assignee that takes an assignment: a. for value;b. in good faith;c. without notice of a claim of a property or possessory right to the property assigned; andd. 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 554.3305,subsection 1. 3. When subsection 2 not applicable. Subsection 2 does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under section554.3305, subsection 2. 4. Omission of required statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this Article requires thatthe record include a statement to the

red statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this Article requires thatthe record include a statement to the effect that the rights of an assignee are subject to claimsor defenses that the account debtor could assert against the original obligee, and the recorddoes not include such a statement: a. the record has the same effect as if the record included such a statement; andb. the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement. 5. Rule for individual under other law. 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 incurredthe obligation primarily for personal, family, or household purposes. 6. Other law not displaced. Except as otherwise provided in subsection 4, this section does not displace law other than this Article which gives effect to an agreement by an accountdebtor not to assert a claim or defense against an assignee.

rwise provided in subsection 4, this section does not displace law other than this Article which gives effect to an agreement by an accountdebtor not to assert a claim or defense against an assignee. 2000 Acts, ch 1149, §65, 185, 187 Sat Dec 23 11:02:04 2023 Iowa Code 2024, Section 554.9403 (25, 0)