Missouri Revised Statutes
Chapter 400
Uniform Commercial Code
←400.09-405
Section 400.9-406.1
400.09-407→
August 28, 2015
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.
400.9-406. (a) Subject to subsections (b) through (i), an account
debtor on an account, chattel paper, or a payment intangible may discharge
its obligation by paying the assignor until, but not after, the account
debtor receives a notification, authenticated by the assignor or the
assignee, that the amount due or to become due has been assigned and that
payment is to be made to the assignee. After receipt of the notification,
the account debtor may discharge its obligation by paying the assignee and
may not discharge the obligation by paying the assignor.
(b) Subject to subsection (h), notification is ineffective under
subsection (a):
(1) If it does not reasonably identify the rights assigned;
(2) To the extent that an agreement between an account debtor and a
seller of a payment intangible limits the account debtor's duty to pay a
person other than the seller and the limitation is effective under law
other than this article; or
(3) At the option of an account debtor, if the notification notifies
the account debtor to make less than the full amount of any installment or
other periodic payment to the assignee, even if:
(A) Only a portion of the account, chattel paper, or general
intangible has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that assignee is
limited.
(c) Subject to subsection (h), if requested by the account debtor, an
assignee shall seasonably furnish reasonable proof that the assignment has
been made. Unless the assignee complies, the account debtor may discharge
its obligation by paying the assignor, even if the account debtor has
received a notification under subsection (a).
(d) Except as otherwise provided in subsection (e) and sections
400.2A-303 and 400.9-407, and subject to subsection (h), a term in an
agreement between an account debtor and an assignor or in a promissory note
is ineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of the account
debtor or person obligated on the promissory note to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a
security interest in, the account, chattel paper, payment intangible, or
promissory note; or
(2) Provides that the assignment or transfer or the creation,
attachment, perfection, or enforcement of the security interest may give
rise to a default, breach, right of recoupment, claim, defense,
termination, right of termination, or remedy under the account, chattel
paper, payment intangible, or promissory note.
(e) Subsection (d) does not apply to the sale of a payment intangible
or promissory note, other than a sale pursuant to a disposition under
section 400.9-610 or an acceptance of collateral under section 400.9-620.
(f) Except as otherwise provided in sections 400.2A-303 and
400.9-407, and subject to subsections (h) and (i), a rule of law, statute,
or regulation, that prohibits, restricts, or requires the consent of a
government, governmental body or official, or account debtor to the
assignment or transfer of, or creation of a security interest in, an
account or chattel paper is ineffective to the extent that the rule of law,
statute, or regulation:
(1) Prohibits, restricts, or requires the consent of the government,
governmental body or official, or account debtor to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a
security interest in, the account or chattel paper; or
(2) Provides that the assignment or transfer or the creation,
attachment, perfection, or enforcement of the security interest may give
rise to a default, breach, right of recoupment, claim, defense,
termination, right of termination, or remedy under the account or chattel
paper.
(g) Subject to subsection (h), an account debtor may not waive or
vary its option under subsection (b)(3).
(h) 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.
(i) This section does not apply to an assignment of a
health-care-insurance receivable.
(j) This section prevails over any inconsistent provisions of any
statutes, rules, and regulations.
(L. 1963 p. 503 § 9-406, A.L. 1965 p. 595, A.L. 1978 S.B. 755, A.L.
1988 S.B. 583, A.L. 2001 S.B. 288, A.L. 2002 S.B. 895, A.L. 2013
H.B. 212)
2002
2001
1991
2002
400.9-406. (a) Subject to subsections (b) through (i), an account
debtor on an account, chattel paper, or a payment intangible may discharge
its obligation by paying the assignor until, but not after, the account
debtor receives a notification, authenticated by the assignor or the assignee,
that the amount due or to become due has been assigned and that payment is to
be made to the assignee. After receipt of the notification, the account
debtor may discharge its obligation by paying the assignee and may not
discharge the obligation by paying the assignor.
(b) Subject to subsection (h), notification is ineffective under
subsection (a):
(1) If it does not reasonably identify the rights assigned;
(2) To the extent that an agreement between an account debtor and a
seller of a payment intangible limits the account debtor's duty to pay a
person other than the seller and the limitation is effective under law other
than this article; or
(3) At the option of an account debtor, if the notification notifies the
account debtor to make less than the full amount of any installment or other
periodic payment to the assignee, even if:
(A) Only a portion of the account, chattel paper, or general intangible
has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that assignee is
limited.
(c) Subject to subsection (h), if requested by the account debtor, an
assignee shall seasonably furnish reasonable proof that the assignment has
been made. Unless the assignee complies, the account debtor may discharge its
obligation by paying the assignor, even if the account debtor has received a
notification under subsection (a).
(d) Except as otherwise provided in subsection (e) and sections
400.2A-303 and 400.9-407, and subject to subsection (h), a term in an
agreement between an account debtor and an assignor or in a promissory note
is ineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of the account debtor
or person obligated on the promissory note to the assignment or transfer of,
or the creation, attachment, perfection, or enforcement of a security
interest in, the account, chattel paper, payment intangible, or promissory
note; or
(2) Provides that the assignment or transfer or the creation,
attachment, perfection, or enforcement of the security interest may give rise
to a default, breach, right of recoupment, claim, defense, termination, right
of termination, or remedy under the account, chattel paper, payment
intangible, or promissory note.
(e) Subsection (d) does not apply to the sale of a payment intangible or
promissory note.
(f) Except as otherwise provided in sections 400.2A-303 and 400.9-407,
and subject to subsections (h) and (i), a rule of law, statute, or
regulation, that prohibits, restricts, or requires the consent of a
government, governmental body or official, or account debtor to the
assignment or transfer of, or creation of a security interest in, an account
or chattel paper is ineffective to the extent that the rule of law, statute,
or regulation:
(1) Prohibits, restricts, or requires the consent of the government,
governmental body or official, or account debtor to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a
security interest in, the account or chattel paper; or
(2) Provides that the assignment or transfer or the creation,
attachment, perfection, or enforcement of the security interest may give rise
to a default, breach, right of recoupment, claim, defense, termination, right
of termination, or remedy under the account or chattel paper.
(g) Subject to subsection (h), an account debtor may not waive or vary
its option under subsection (b)(3).
(h) 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.
(i) This section does not apply to an assignment of a
health-care-insurance receivable.
(j) This section prevails over any inconsistent provisions of any
statutes, rules, and regulations.
2001
400.9-406. (a) Subject to subsections (b) through (i), an account
debtor on an account, chattel paper, or a payment intangible may discharge
its obligation by paying the assignor until, but not after, the account
debtor receives a notification, authenticated by the assignor or the
assignee, that the amount due or to become due has been assigned and that
payment is to be made to the assignee. After receipt of the notification,
the account debtor may discharge its obligation by paying the assignee and
may not discharge the obligation by paying the assignor.
(b) Subject to subsection (h), notification is ineffective under
subsection (a):
(1) If it does not reasonably identify the rights assigned;
(2) To the extent that an agreement between an account debtor and a
seller of a payment intangible limits the account debtor's duty to pay a
person other than the seller and the limitation is effective under law
other than this article; or
(3) At the option of an account debtor, if the notification notifies
the account debtor to make less than the full amount of any installment or
other periodic payment to the assignee, even if:
(A) Only a portion of the account, chattel paper, or general
intangible has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that assignee is
limited.
(c) Subject to subsection (h), if requested by the account debtor, an
assignee shall seasonably furnish reasonable proof that the assignment has
been made. Unless the assignee complies, the account debtor may discharge
its obligation by paying the assignor, even if the account debtor has
received a notification under subsection (a).
(d) Except as otherwise provided in subsection (e) and sections
400.2A-303 and 400.9-407, and subject to subsection (h), a term in an
agreement between an account debtor and an assignor or in a promissory note
is ineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of the account
debtor or person obligated on the promissory note to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a
security interest in, the account, chattel paper, payment intangible, or
promissory note; or
(2) Provides that the creation, attachment, perfection, or
enforcement of the security interest may give rise to a default, breach,
right of recoupment, claim, defense, termination, right of termination, or
remedy under the account, chattel paper, payment intangible, or promissory
note.
(e) Subsection (d) does not apply to the sale of a payment intangible
or promissory note.
(f) Except as otherwise provided in sections 400.2A-303 and 400.9-
407, and subject to subsections (h) and (i), a rule of law, statute, or
regulation, that prohibits, restricts, or requires the consent of a
government, governmental body or official, or account debtor to the
assignment or transfer of, or creation of a security interest in, an
account or chattel paper is ineffective to the extent that the rule of law,
statute, or regulation:
(1) Prohibits, restricts, or requires the consent of the government,
governmental body or official, or account debtor to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a
security interest in, the account or chattel paper; or
(2) Provides that the creation, attachment, perfection, or
enforcement of the security interest may give rise to a default, breach,
right of recoupment, claim, defense, termination, right of termination, or
remedy under the account or chattel paper.
(g) Subject to subsection (h), an account debtor may not waive or
vary its option under subsection (b)(3).
(h) 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.
(i) This section does not apply to an assignment of a health-care-
insurance receivable.
(j) This section prevails over any inconsistent provisions of any
statutes, rules, and regulations.
1991
400.9-406. A secured party of record may by his signed
statement release all or a part of any collateral described in a
filed financing statement. The statement of release is
sufficient if it contains a description of the collateral being
released, the name and address of the debtor, the name and
address of the secured party, and the file number of the
financing statement. A statement of release signed by a person
other than the secured party of record must be accompanied by a
separate written statement of assignment signed by the secured
party of record and complying with subsection (2) of section
400.9-405, including payment of the required fee. Upon
presentation of such a statement of release to the filing officer
he shall mark the statement with the hour and date of filing and
shall note the same upon the margin of the index of the filing of
the financing statement. The uniform fee for filing and noting
such a statement of release shall be four dollars if the
statement is of the standard size prescribed by the secretary of
state and otherwise shall be six dollars, plus one dollar per
page for attachments.
Top
Missouri General Assembly
Copyright © Missouri Legislature, all rights reserved.