Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 4. RIGHTS OF THIRD PARTIES

11-9-405. Modification of assigned contract.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
Effect of modification on assignee. 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. This subsection is subject to subsections (b) through (d) of this Code section.#
(b)
Applicability of subsection (a) of this Code section. Subsection (a) of this Code section applies to the extent that:#
1. (1)
  The right to payment or a part thereof under an assigned contract has not been fully earned by performance; or#
2. (2)
  The right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under subsection (a) of Code Section 11-9-406.#
(c)
Rule for individual under other law. This Code 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.#
(d)
Inapplicability to health care insurance receivable. This Code section does not apply to an assignment of a health care insurance receivable.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-9-405, enacted by Ga. L. 2001, p. 362, § 1.

Law reviews

For article, “The Good Faith Purchase Idea and the Uniform Commercial Code,” see 15 Ga. L. Rev. 605 (1981).

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, page 846; merge action: carried; file SHA-256 ad397fccbf21.

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