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Can you summarize IACO 554.9403?
UNIFORM COMMERCIAL CODE > Agreement not to assert defenses against assignee.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to agreements between account debtors and assignors regarding the assertion of claims or defenses against an assignee. The document states that such agreements are enforceable by an assignee if certain conditions are met, including taking the assignment for value, in good faith, without notice of a claim or defense, and without notice of a defense or claim in recoupment. However, defenses that can be asserted against a holder in due course of a negotiable instrument are exempted from this agreement. The document also addresses the omission of a required statement in consumer transactions, stating that if a record does not include the required statement regarding the rights of an assignee, the account debtor may assert claims and defenses as if the statement were included. It further clarifies that this section is subject to other laws that establish different rules for individual account debtors who incurred the obligation primarily for personal, family, or household purposes. Overall, this document provides guidelines and exceptions for agreements not to assert claims or defenses against assignees.
Whom does it apply to?
Account debtors and assignees
What does it govern?
Agreement not to assert claim or defense against assignee
What are exemptions?
Defenses of a type that may be asserted against a holder in due course of a negotiable instrument
What are the Penalties?
No penalties mentioned.
Jurisdiction
Iowa