25-9-405. 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 section.
(b) Applicability of subsection (a). - 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 G.S. 25-9-406(a).
(c) Rule for individual under other law. - 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.
(d) Inapplicability to health-care-insurance receivable. - This section does not apply to an assignment of a health-care-insurance receivable. (1945, c. 196, s. 6; 1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 25 - Uniform Commercial Code
Article 9 - Secured Transactions.
§ 25-9-102 - Definitions and index of definitions.
§ 25-9-103 - Purchase-money security interest; application of payments; burden of establishing.
§ 25-9-104 - Control of deposit account.
§ 25-9-105 - Control of electronic chattel paper.
§ 25-9-106 - Control of investment property.
§ 25-9-107 - Control of letter-of-credit right.
§ 25-9-108 - Sufficiency of description.
§ 25-9-110 - Security interests arising under Article 2 or 2A of this Chapter.
§ 25-9-201 - General effectiveness of security agreement.
§ 25-9-202 - Title to collateral immaterial.
§ 25-9-204 - After-acquired property; future advances.
§ 25-9-205 - Use or disposition of collateral permissible.
§ 25-9-206 - Security interest arising in purchase or delivery of financial asset.
§ 25-9-207 - Rights and duties of secured party having possession or control of collateral.
§ 25-9-208 - Additional duties of secured party having control of collateral.
§ 25-9-209 - Duties of secured party if account debtor has been notified of assignment.
§ 25-9-210 - Request for accounting; request regarding list of collateral or statement of account.
§ 25-9-301 - Law governing perfection and priority of security interests.
§ 25-9-302 - Law governing perfection and priority of agricultural liens.
§ 25-9-304 - Law governing perfection and priority of security interests in deposit accounts.
§ 25-9-305 - Law governing perfection and priority of security interests in investment property.
§ 25-9-306 - Law governing perfection and priority of security interests in letter-of-credit rights.
§ 25-9-307 - Location of debtor.
§ 25-9-308 - When security interest or agricultural lien is perfected; continuity of perfection.
§ 25-9-309 - Security interest perfected upon attachment.
§ 25-9-314 - Perfection by control.
§ 25-9-315 - Secured party's rights on disposition of collateral and in proceeds.
§ 25-9-316 - Effect of change in governing law.
§ 25-9-319 - Rights and title of consignee with respect to creditors and purchasers.
§ 25-9-321 - Licensee of general intangible and lessee of goods in ordinary course of business.
§ 25-9-324 - Priority of purchase-money security interests.
§ 25-9-324.1 - Priority of production-money security interests and agricultural liens.
§ 25-9-325 - Priority of security interests in transferred collateral.
§ 25-9-326 - Priority of security interests created by new debtor.
§ 25-9-327 - Priority of security interests in deposit account.
§ 25-9-328 - Priority of security interests in investment property.
§ 25-9-329 - Priority of security interests in letter-of-credit right.
§ 25-9-330 - Priority of purchaser of chattel paper or instrument.
§ 25-9-332 - Transfer of money; transfer of funds from deposit account.
§ 25-9-333 - Priority of certain liens arising by operation of law.
§ 25-9-334 - Priority of security interests in fixtures and crops.
§ 25-9-336 - Commingled goods.
§ 25-9-337 - Priority of security interests in goods covered by certificate of title.
§ 25-9-339 - Priority subject to subordination.
§ 25-9-340 - Effectiveness of right of recoupment or setoff against deposit account.
§ 25-9-341 - Bank's rights and duties with respect to deposit account.
§ 25-9-342 - Bank's right to refuse to enter into or disclose existence of control agreement.
§ 25-9-401 - Alienability of debtor's rights.
§ 25-9-402 - Secured party not obligated on contract of debtor or in tort.
§ 25-9-403 - Agreement not to assert defenses against assignee.
§ 25-9-404 - Rights acquired by assignee; claims and defenses against assignee.
§ 25-9-405 - Modification of assigned contract.
§ 25-9-409 - Restrictions on assignment of letter-of-credit rights ineffective.
§ 25-9-503 - Name of debtor and secured party.
§ 25-9-504 - Indication of collateral.
§ 25-9-506 - Effect of errors or omissions.
§ 25-9-507 - Effect of certain events on effectiveness of financing statement.
§ 25-9-508 - Effectiveness of financing statement if new debtor becomes bound by security agreement.
§ 25-9-509 - Persons entitled to file a record.
§ 25-9-510 - Effectiveness of filed record.
§ 25-9-511 - Secured party of record.
§ 25-9-512 - Amendment of financing statement.
§ 25-9-513 - Termination statement.
§ 25-9-514 - Assignment of powers of secured party of record.
§ 25-9-516 - What constitutes filing; effectiveness of filing.
§ 25-9-517 - Effect of indexing errors.
§ 25-9-518 - Claim concerning inaccurate or wrongfully filed record.
§ 25-9-520 - Acceptance, refusal to accept record, and cancellation of record.
§ 25-9-521 - Uniform form of written financing statement and amendment.
§ 25-9-522 - Maintenance and destruction of records.
§ 25-9-523 - Information from filing office.
§ 25-9-524 - Delay by filing office.
§ 25-9-526 - Filing-office rules.
§ 25-9-602 - Waiver and variance of rights and duties.
§ 25-9-603 - Agreement on standards concerning rights and duties.
§ 25-9-604 - Procedure if security agreement covers real property or fixtures.
§ 25-9-605 - Unknown debtor or secondary obligor.
§ 25-9-606 - Time of default for agricultural lien.
§ 25-9-607 - Collection and enforcement by secured party.
§ 25-9-609 - Secured party's right to take possession after default.
§ 25-9-610 - Disposition of collateral after default.
§ 25-9-611 - Notification before disposition of collateral.
§ 25-9-612 - Timeliness of notification before disposition of collateral.
§ 25-9-613 - Contents and form of notification before disposition of collateralgeneral.
§ 25-9-615 - Application of proceeds of disposition; liability for deficiency and right to surplus.
§ 25-9-616 - Explanation of calculation of surplus or deficiency.
§ 25-9-617 - Rights of transferee of collateral.
§ 25-9-618 - Rights and duties of certain secondary obligors.
§ 25-9-619 - Transfer of record or legal title.
§ 25-9-621 - Notification of proposal to accept collateral.
§ 25-9-622 - Effect of acceptance of collateral.
§ 25-9-623 - Right to redeem collateral.
§ 25-9-625 - Remedies for secured party's failure to comply with Article.
§ 25-9-626 - Action in which deficiency or surplus is in issue.
§ 25-9-627 - Determination of whether conduct was commercially reasonable.
§ 25-9-703 - Security interest perfected before effective date.
§ 25-9-704 - Security interest unperfected before effective date.
§ 25-9-705 - Effectiveness of action taken before effective date.
§ 25-9-707 - Amendment of pre-effective-date financing statement.
§ 25-9-708 - Persons entitled to file initial financing statement or continuation statement.