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Can you summarize NVRS 104.9404?
Uniform Commercial CodeOriginal Articles > Rights acquired by assignee; claims and defenses against assignee.
Short Summary
This section of the Nevada Revised Statutes, under the Uniform Commercial CodeOriginal Articles, governs the rights acquired by an assignee and the claims and defenses that can be made against the assignee. The rights of an assignee are subject to the terms of the agreement between the account debtor and assignor, as well as any defense or claim in recoupment arising from the transaction that gave rise to the contract. Additionally, any defense or claim of the account debtor against the assignor that accrues before receiving a notification of the assignment can be asserted against the assignee. However, the claim of an account debtor against an assignor can only be asserted against an assignee to reduce the amount owed. This section is subject to other laws that establish different rules for account debtors who are natural persons and incurred the obligation primarily for personal, family, or household purposes. In consumer transactions, if a record evidences the account debtor’s obligation and does not include a required statement regarding recovery against an assignee, the claim against the assignor is determined as if the statement were included. This section does not apply to assignments of health-care-insurance receivables.
Whom does it apply to?
Account debtors and assignees
What does it govern?
Rights acquired by assignee; claims and defenses against assignee
What are exemptions?
This section does not apply to an assignment of a health-care-insurance receivable.
What are the Penalties?
No penalties mentioned.
Jurisdiction
Nevada