§ 554.9404

554.9404 Rights acquired by assignee — claims and defenses against assignee. 1. Assignee’s rights subject to terms, claims, and defenses — exceptions. Unless an account debtor has made an enforceable agreement not to assert defenses or claims, andsubject to subsections 2 through 5, the rights of an assignee are subject to: a. 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; and b. any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by theassignor or the assignee. 2. Account debtor’s claim reduces amount owed to assignee. Subject to subsection 3 and except as otherwise provided in subsection 4, the claim of an account debtor against anassignor may be asserted against an assignee under subsection 1 only to reduce the amountthe account debtor owes. 3. 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

ule 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. 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 effect that the account debtor’s recovery against anassignee with respect to claims and defenses against the assignor may not exceed amountspaid by the account debtor under the record, and the record does not include such a statement,the extent to which a claim of an account debtor against the assignor may be asserted againstan assignee is determined as if the record included such a statement. 5. Inapplicability to health care insurance receivable. This section does not apply to an assignment of a health care insurance receivable. 2000 Acts, ch 1149, §66, 185, 187Referred to in §539.1, 539.2, 539.3, 554.9109 Sat Dec 23 11:02:05 2023 Iowa Code 2024, Section 554.9404 (26, 0)