Idaho State Statutes - Idaho Attorney Directory

RIGHTS ACQUIRED BY ASSIGNEE -- CLAIMS AND DEFENSES AGAINST
ASSIGNEE. (a) Unless an account debtor has made an enforceable agreement not
to assert defenses or claims, and subject to subsections (b) through (e) of
this section, the rights of an assignee are subject to:
(1) All terms of the agreement between the account debtor and assignor
and any defense or claim in recoupment arising from the transaction that
gave rise to the contract; and
(2) Any other defense or claim of the account debtor against the assignor
which accrues before the account debtor receives a notification of the
assignment authenticated by the assignor or the assignee.
(b) Subject to subsection (c) of this section and except as otherwise
provided in subsection (d) of this section, the claim of an account debtor
against an assignor may be asserted against an assignee under subsection (a)
of this section only to reduce the amount the account debtor owes.
(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) In a consumer transaction, if a record evidences the account debtor's
obligation, law other than this chapter requires that the record include a
statement to the effect that the account debtor's recovery against an assignee
with respect to claims and defenses against the assignor may not exceed
amounts paid by the account debtor under the record, and the record does not
include such a statement, the extent to which a claim of an account debtor
against the assignor may be asserted against an assignee is determined as if
the record included such a statement.
(e) This section does not apply to an assignment of a health care
insurance receivable.

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