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Can you summarize NHRS 382-A:9-406?
UNIFORM COMMERCIAL CODE > Discharge of Account Debtor; Notification of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), governs the discharge of account debtors, notification of assignment, identification and proof of assignment, and restrictions on the assignment of accounts, chattel paper, payment intangibles, and promissory notes. It establishes that an account debtor can discharge its obligation by paying the assignor until it receives a notification signed by the assignor or assignee stating that the amount due has been assigned and payment should be made to the assignee. The section also outlines circumstances where the notification is ineffective, such as when it does not reasonably identify the rights assigned or when it notifies the account debtor to make less than the full amount of any payment to the assignee. Additionally, it states that an assignee must provide reasonable proof of assignment if requested by the account debtor. The section further specifies that terms in agreements or promissory notes that prohibit or restrict the assignment or transfer of accounts, chattel paper, payment intangibles, or promissory notes are generally ineffective. However, certain sales and legal restrictions on assignment may be exempted. The section also addresses the inapplicability of certain subsections to controllable accounts or controllable payment intangibles.
Whom does it apply to?
Account debtors, assignors, and assignees involved in the assignment of accounts, chattel paper, payment intangibles, and promissory notes.
What does it govern?
Discharge of Account Debtor; Notification of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes
What are exemptions?
This section does not apply to an assignment of a health-care-insurance receivable or a claim or right to receive compensation for injuries or sickness or benefits under a special needs trust.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire