28-9-405. MODIFICATION OF ASSIGNED CONTRACT. (a) 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 section.
(b) Subsection (a) of this 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 section 28-9-406(a).
(c) This section is subject to law other than this chapter 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) This section does not apply to an assignment of a health care insurance receivable.
History:
[28-9-405, added 2001, ch. 208, sec. 2, p. 757.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 9 - SECURED TRANSACTIONS
Part 4 - RIGHTS OF THIRD PARTIES
Section 28-9-401 - ALIENABILITY OF DEBTOR’S RIGHTS.
Section 28-9-402 - SECURED PARTY NOT OBLIGATED ON CONTRACT OF DEBTOR OR IN TORT.
Section 28-9-403 - AGREEMENT NOT TO ASSERT DEFENSES AGAINST ASSIGNEE.
Section 28-9-404 - RIGHTS ACQUIRED BY ASSIGNEE — CLAIMS AND DEFENSES AGAINST ASSIGNEE.
Section 28-9-405 - MODIFICATION OF ASSIGNED CONTRACT.
Section 28-9-409 - RESTRICTIONS ON ASSIGNMENT OF LETTER OF CREDIT RIGHTS INEFFECTIVE.