Section 440.9409 – Restrictions on Assignment of Letter-of-Credit Rights Ineffective.
440.9409 Restrictions on assignment of letter-of-credit rights ineffective. Sec. 9409. (1) A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit that prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary’s assignment of or creation […]
Section 440.9410 – Repealed. 2000, Act 348, Eff. July 1, 2001.
440.9410 Repealed. 2000, Act 348, Eff. July 1, 2001. Compiler’s Notes: The repealed section pertained to establishment of subscription service.
Section 440.9401 – Alienability of Debtor’s Rights.
440.9401 Alienability of debtor’s rights. Sec. 9401. (1) Except as otherwise provided in subsection (2) and sections 9406, 9407, 9408, and 9409, whether a debtor’s rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this article. (2) An agreement between the debtor and secured party that prohibits a transfer […]
Section 440.9402 – Secured Party Not Obligated on Contract of Debtor or in Tort.
440.9402 Secured party not obligated on contract of debtor or in tort. Sec. 9402. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions. History: […]
Section 440.9403 – Agreement Not to Assert Defenses Against Assignee.
440.9403 Agreement not to assert defenses against assignee. Sec. 9403. (1) As used in this section, “value” has the meaning provided in section 3303(1). (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 […]
Section 440.9404 – Rights Acquired by Assignee; Claims and Defenses Against Assignee.
440.9404 Rights acquired by assignee; claims and defenses against assignee. Sec. 9404. (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 all of the following: (a) All terms of the agreement between the […]
Section 440.9405 – Modification of Assigned Contract.
440.9405 Modification of assigned contract. Sec. 9405. (1) 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. […]
Section 440.9406 – Discharge of Account Debtor; Notification of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective.
440.9406 Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective. Sec. 9406. (1) Subject to subsections (2) through (9), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor […]
Section 440.9407 – Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor’s Residual Interest.
440.9407 Restrictions on creation or enforcement of security interest in leasehold interest or in lessor’s residual interest. Sec. 9407. (1) Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it does 1 or more of the following: (a) Prohibits, restricts, or requires the consent of […]
Section 440.9408 – Restrictions on Assignment of Promissory Notes, Health-Care-Insurance Receivables, and Certain General Intangibles Ineffective.
440.9408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective. Sec. 9408. (1) Except as otherwise provided in subsection (2) or (4), 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 […]