Title 11, Chapter 9, Section 405
( 11-9-405)
Modification of assigned contract. (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) The right to payment or a part thereof under an assigned
contract has not been fully earned by performance; or (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. |