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Can you summarize IACO 554.9404?
UNIFORM COMMERCIAL CODE > Rights acquired by assignee claims and defenses against assignee.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the rights acquired by an assignee and the claims and defenses that can be made against the assignee. The rights of an assignee are subject to the terms of the agreement between the account debtor and assignor, as well as any defense or claim in recoupment arising from the transaction that gave rise to the contract. Additionally, any defense or claim of the account debtor against the assignor that accrues before receiving a notification of the assignment can be asserted against the assignee. However, an account debtor’s claim can only be used to reduce the amount owed to the assignee. There are exceptions to this rule for individuals who incurred the obligation primarily for personal, family, or household purposes, as well as for consumer transactions where certain statements are omitted from the record. It is important to note that this section does not apply to assignments of health care insurance receivables.
Whom does it apply to?
Account debtors and assignees
What does it govern?
Rights acquired by assignee and claims and defenses against assignee
What are exemptions?
This section does not apply to an assignment of a health care insurance receivable.
What are the Penalties?
No penalties mentioned.
Jurisdiction
Iowa