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Can you summarize MNST 336.9-408?
UNIFORM COMMERCIAL CODE > RESTRICTIONS ON ASSIGNMENT OF PROMISSORY NOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND CERTAIN GENERAL INTANGIBLES INEFFECTIVE.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, addresses the restrictions on the assignment of promissory notes, health-care-insurance receivables, and certain general intangibles. It states that a term in a promissory note or an agreement between an account debtor and a debtor, which prohibits, restricts, or requires consent for the assignment or transfer of the promissory note, health-care-insurance receivable, or general intangible, is ineffective if it impairs the creation, attachment, or perfection of a security interest or provides that the assignment or transfer may give rise to default or other remedies. The document also mentions that legal restrictions on assignment are generally ineffective if they impair the creation, attachment, or perfection of a security interest or provide for default or other remedies. However, it specifies that if a term or legal restriction would be effective under other laws but is ineffective under this document, it does not impose any duty or obligation on the person obligated on the promissory note or the account debtor, and the secured party cannot enforce the security interest or use the debtor’s rights or confidential information. No specific penalties or exemptions are mentioned in this document.
Whom does it apply to?
Debtors, account debtors, and persons obligated on promissory notes
What does it govern?
Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota