KRS 355.9-405: Modification of assigned contract.

(1) 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 (2) to (4) of this section.

(2) Subsection (1) of this section applies to the extent that:

(a) The right to payment or a part thereof under an assigned contract h as not been

fully earned by performance; or

(b) 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

KRS 355.9-406(1).

(3) This section is subject to law ot her 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.

(4) This section does not apply to an assignment of a health-care-insurance receivable.