Iowa Code 554.9405 – Modification of assigned contract
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Terms Used In Iowa Code 554.9405
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Rule: includes "regulation". See Iowa Code 4.1
554.9405 Modification of assigned contract.
1. 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 2 through 4.
2. Applicability of subsection 1. Subsection 1 applies to the extent that:
a. the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or
b. 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 § 554.9406, subsection 1.
3. 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.
4. Inapplicability to health care insurance receivable. This section does not apply to an assignment of a health care insurance receivable.
2000 Acts, ch 1149, §67, 185, 187
Referred to in §539.1, 539.2, 539.3
1. 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 2 through 4.
2. Applicability of subsection 1. Subsection 1 applies to the extent that:
a. the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or
b. 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 § 554.9406, subsection 1.
3. 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.
4. Inapplicability to health care insurance receivable. This section does not apply to an assignment of a health care insurance receivable.
2000 Acts, ch 1149, §67, 185, 187
Referred to in §539.1, 539.2, 539.3