California Commercial Code

§ 9406

COM § 9406 Effective Jan 1, 2024Div. 9 · Ch. 4

Statute text

(a)Subject to subdivisions (b) to (i), inclusive, and (l), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, signed by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.

(b)Subject to subdivisions (h) and (l), notification is ineffective under subdivision (a) as follows:

(1)If it does not reasonably identify the rights assigned.

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Legislative history

Amended by Stats. 2023, Ch. 210, Sec. 57. (SB 95) Effective January 1, 2024.