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Can you summarize NHRS 382-A:12-106?
UNIFORM COMMERCIAL CODE > Discharge of Account Debtor on Controllable Account or Controllable Payment Intangible.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the discharge of obligations by account debtors on controllable accounts or controllable payment intangibles. An account debtor may discharge its obligation by paying the person having control of the controllable electronic record that evidences the account or intangible. However, if the account debtor receives a notification signed by a person that formerly had control or the person to which control was transferred, the account debtor may not discharge its obligation by paying a person that formerly had control. The notification must reasonably identify the account or intangible, notify the account debtor of the transfer of control, identify the transferee, and provide a commercially reasonable method of payment to the transferee. After receiving a compliant notification, the account debtor must discharge its obligation by paying in accordance with the notification and may not pay a person that formerly had control. The effectiveness of the notification may be subject to certain conditions, such as an agreement between the account debtor and the person with control regarding proof of transfer of control. Additionally, an account debtor may not waive or vary its rights under the notification provisions, except as provided by law for individuals in certain circumstances. No specific penalties are mentioned in this document.
Whom does it apply to?
Account debtors on controllable accounts or controllable payment intangibles
What does it govern?
Discharge of Account Debtor on Controllable Account or Controllable Payment Intangible
What are exemptions?
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 incurred the obligation primarily for personal, family, or household purposes.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
New Hampshire