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Can you summarize NVRS 104.9406?
Uniform Commercial CodeOriginal Articles > 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 Nevada Revised Statutes, under the Uniform Commercial CodeOriginal Articles, 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 states that an account debtor may discharge its obligation by paying the assignor until it receives a notification authenticated by the assignor or assignee, indicating that the amount due has been assigned and payment should be made to the assignee. The notification must reasonably identify the rights assigned, and the account debtor may not discharge the obligation by paying the assignor after receiving the notification. The section also allows the account debtor to request reasonable proof of assignment from the assignee, and if the assignee fails to provide proof, the account debtor may discharge its obligation by paying the assignor. Additionally, it states that certain restrictions on the assignment or transfer of accounts, chattel paper, payment intangibles, and promissory notes are ineffective, except in specific circumstances. However, this section does not apply to the assignment of health-care-insurance receivables or transfers of rights to receive payments under specific provisions of the Nevada Revised Statutes.
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 ineffective.
What are exemptions?
This section does not apply to an assignment of a health-care-insurance receivable or to a transfer of a right to receive payments pursuant to NRS 42.200 to 42.400, inclusive.
What are the Penalties?
No penalties are mentioned in this section.
Jurisdiction
Nevada