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Can you summarize NVRS 104.9403?
Uniform Commercial CodeOriginal Articles > Agreement not to assert defenses against assignee.
Short Summary
This legal document governs the enforceability of an agreement between an account debtor and an assignor not to assert any claim or defense against an assignee. The agreement is enforceable by an assignee who takes the assignment for value, in good faith, without notice of a claim of a property or possessory right to the assigned property, and without notice of a defense or claim in recoupment. However, the agreement is not enforceable with respect to defenses that may be asserted against a holder in due course of a negotiable instrument. In consumer transactions, if a record evidencing the account debtor’s obligation does not include a statement indicating that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement. This document is subject to other laws that establish different rules for account debtors who are natural persons and who incurred the obligation primarily for personal, family, or household purposes. Except for the mentioned circumstances, 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
Nevada