Maine Revised Statutes Title 11 Sec. 9-1408 – Restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles ineffective
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(1). Except as otherwise provided in subsection (2), a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license or franchise, and which term prohibits, restricts or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment or perfection of a security interest in, the promissory note, health-care-insurance receivable or general intangible, is ineffective to the extent that the term:
(a). Would impair the creation, attachment or perfection of a security interest; or [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible. [PL 2001, c. 471, Pt. A, §16 (AMD); PL 2001, c. 471, Pt. A, §18 (AFF).]
[PL 2001, c. 471, Pt. A, §16 (AMD); PL 2001, c. 471, Pt. A, §18 (AFF).]
Terms Used In Maine Revised Statutes Title 11 Sec. 9-1408
- Account: includes health-care-insurance receivables. See Maine Revised Statutes Title 11 Sec. 9-1102
- Account debtor: means a person obligated on an account, chattel paper or general intangible. See Maine Revised Statutes Title 11 Sec. 9-1102
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Collateral: includes :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Contract: A legal written agreement that becomes binding when signed. Debtor: means :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102General intangible: includes payment intangibles and software. See Maine Revised Statutes Title 11 Sec. 9-1102 Health-care-insurance receivable: means an interest in or claim under a policy of insurance that is a right to payment of a monetary obligation for health-care goods or services provided or to be provided. See Maine Revised Statutes Title 11 Sec. 9-1102 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. Payment intangible: means a general intangible under which the account debtor's principal obligation is a monetary obligation. See Maine Revised Statutes Title 11 Sec. 9-1102 Promissory note: means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds. See Maine Revised Statutes Title 11 Sec. 9-1102 Secured party: means :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Statute: A law passed by a legislature.
(2). Subsection (1) applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note, other than a sale pursuant to a disposition under section 9?1610 or acceptance of collateral under section 9?1620.
[PL 2013, c. 317, Pt. A, §19 (AMD).]
(3). A rule of law, statute or regulation that prohibits, restricts or requires the consent of a government, governmental body or official, person obligated on a promissory note, or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable or general intangible, including a contract, permit, license or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute or regulation:
(a). Would impair the creation, attachment or perfection of a security interest; or [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible. [PL 2001, c. 471, Pt. A, §17 (AMD); PL 2001, c. 471, Pt. A, §18 (AFF).]
[PL 2001, c. 471, Pt. A, §17 (AMD); PL 2001, c. 471, Pt. A, §18 (AFF).]
(4). To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or general intangible or a rule of law, statute or regulation described in subsection (3) would be effective under law other than this Article but is ineffective under subsection (1) or (3), the creation, attachment or perfection of a security interest in the promissory note, health-care-insurance receivable or general intangible:
(a). Is not enforceable against the person obligated on the promissory note or the account debtor; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). Does not impose a duty or obligation on the person obligated on the promissory note or the account debtor; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c). Does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party or accept payment or performance from the secured party; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(d). Does not entitle the secured party to use or assign the debtor’s rights under the promissory note, health-care-insurance receivable or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable or general intangible; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(e). Does not entitle the secured party to use, assign, possess or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(f). Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable or general intangible. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1999, c. 699, §A2 (NEW). PL 1999, c. 699, §A4 (AFF). PL 2001, c. 471, §§A16,17 (AMD). PL 2001, c. 471, §A18 (AFF). PL 2013, c. 317, Pt. A, §19 (AMD).