(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 division is subject to divisions (B) to (D) of this section.
(B) Division (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 division (A) of section 1309.406 of the Revised Code.
(C) This section is subject to law other than this chapter that 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.
Effective Date: 07-01-2001
Section: Previous 1309.340 1309.341 1309.342 1309.401 1309.402 1309.403 1309.404 1309.405 1309.406 1309.407 1309.408 1309.409 1309.501 1309.502 1309.503 NextLast modified: October 10, 2016