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Can you summarize MNST 336.9-403?
UNIFORM COMMERCIAL CODE > AGREEMENT NOT TO ASSERT DEFENSES AGAINST ASSIGNEE.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, pertains to the agreement not to assert defenses against an assignee. It states that an agreement between an account debtor and an assignor not to assert any claim or defense against an assignee is enforceable under certain conditions. These conditions include the assignee taking the assignment for value, in good faith, without notice of any claim or defense, and without notice of a defense or claim in recoupment. However, this agreement does not apply to defenses that may be asserted against a holder in due course of a negotiable instrument. Additionally, in a consumer transaction, if a record does not include a required statement regarding the rights of an assignee, the account debtor may assert claims and defenses that would have been available if the statement was included. It is important to note that this document does not displace other laws that give effect to an agreement by an account debtor not to assert a claim or defense against an assignee.
Whom does it apply to?
Account debtors and assignees
What does it govern?
Agreement not to assert defenses against assignee
What are exemptions?
Defenses that may be asserted against a holder in due course of a negotiable instrument
What are the Penalties?
No penalties mentioned.
Jurisdiction
Minnesota