In the case of an assignment of a thing in action, the action by the assignee is without prejudice to any set-off, or other defense existing at the time of, or before notice of, the assignment, but this section does not apply to a negotiable promissory note or bill of exchange, transferred in good faith and upon good consideration, before maturity.

SOURCE: CCP § 368.

COMMENT: In 1978, the Federal Trade Commission promulgated rules by which all state laws providing the defense of good faith assignment of such negotiable promissory notes for value were superseded by the Federal rule.

NOTE: CCP § 369, Executor, Trustee, etc., may sue without joining the persons beneficially interested, has been superseded by GRCP Rule 17.