Montana Code 30-9A-403. Agreement not to assert defense against assignee
30-9A-403. Agreement not to assert defense against assignee. (1) In this section, “value” has the meaning provided in 30-3-303(1).
Terms Used In Montana Code 30-9A-403
- Account debtor: means a person obligated on an account, chattel paper, or general intangible. See Montana Code 30-9A-102
- Consumer debtor: means a debtor in a consumer transaction. See Montana Code 30-9A-102
- Consumer transaction: means a transaction to the extent that:
(i)an individual incurs an obligation primarily for personal, family, or household purposes;
(ii)a security interest secures the obligation; and
(iii)the collateral is held or acquired primarily for personal, family, or household purposes. See Montana Code 30-9A-102
- Debtor: means :
(i)a person having a property interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(ii)a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(iii)a consignee. See Montana Code 30-9A-102
- Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Montana Code 30-9A-102
- Instrument: means :
(A)a negotiable instrument; or
(B)any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment. See Montana Code 30-9A-102
- 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.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Property: means real and personal property. See Montana Code 1-1-205
(2)Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:
(a)for value;
(b)in good faith;
(c)without notice of a claim of a property or possessory right to the property assigned; and
(d)without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under 30-3-305(1).
(3)Subsection (2) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under 30-3-305(2).
(4)In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this chapter requires that the record provide a statement to the effect that the rights of an assignee are subject to claims or defenses that the consumer debtor could assert against the original obligee, and the record does not provide such a statement:
(a)the record has the same effect as if the record provided such a statement; and
(b)the account debtor may assert against an assignee those claims and defenses that would have been available if the record provided such a statement.
(5)This section is subject to law other than this chapter that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
(6)Except as otherwise provided in subsection (4), this section does not displace law other than this chapter that gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.