Montana Code 30-9A-404. Rights acquired by assignee — claim and defenses against assignee
30-9A-404. Rights acquired by assignee — claim and defenses against assignee. (1) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (2) through (5), the rights of an assignee are subject to:
Terms Used In Montana Code 30-9A-404
- Account debtor: means a person obligated on an account, chattel paper, or general intangible. 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
- Contract: A legal written agreement that becomes binding when signed.
- 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
- 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. 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.
(a)all terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and
(b)any other defense or claim of the account debtor against the assignor that accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.
(2)Subject to subsection (3) and except as otherwise provided in subsection (4), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (1) only to reduce the amount the account debtor owes.
(3)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.
(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 account debtor’s recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not provide such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record provided such a statement.
(5)This section does not apply to an assignment of a health-care-insurance receivable.