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This entry was published on 2014-09-22
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Modification of Assigned Contract
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 9, PART 4
Section 9--405. Modification of Assigned Contract.

(a) Effect of modification on assignee. A modification of or
substitution for an assigned contract is effective against an assignee
if made in good faith. The assignee acquires corresponding rights under
the modified or substituted contract. The assignment may provide that
the modification or substitution is a breach of contract by the
assignor. This subsection is subject to subsections (b) through (d).

(b) Applicability of subsection (a). Subsection (a) applies to the
extent that:

(1) the right to payment or a part thereof under an assigned

contract has not been fully earned by performance; or

(2) the right to payment or a part thereof has been fully earned

by performance and the account debtor has not received

notification of the assignment under Section 9--406(a).

(c) Rule for individual under other law. 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.

(d) Inapplicability to health-care-insurance receivable. This section
does not apply to an assignment of a health-care-insurance receivable.