{"data":{"id":"us-ky/krs-355.9-404","jurisdiction":"us-ky","citation":"KRS 355.9-404","heading":"Rights acquired by assignee -- Claims and defenses against assignee.","body":"(1) Unless an account debtor has made an enforceable agreement not to assert defenses\nor claims, and subject to subsections (2) to (5) of this section, the rights of  an\nassignee are subject to:\n(a) All terms of the agreement between the account debtor and assignor and any\ndefense or claim in recoupment arising from the transaction that gave rise to\nthe contract; and\n(b) Any other defense or claim of the account debtor  against the assignor which\naccrues before the account debtor receives a notification of the assignment\nsigned by the assignor or the assignee.\n(2) Subject to subsection (3) of this section and except as otherwise provided in\nsubsection (4) of this section , the claim of an account debtor against an assignor\nmay be asserted against an assignee under subsection (1) of this section only to\nreduce the amount the account debtor owes.\n(3) This section is subject to law other than this article which establishes a different\nrule for an account debtor who is an individual and who incurred the obligation\nprimarily for personal, family, or household purposes.\n(4) In a consumer transaction, if a record evidences the account debtor's obligation, law\nother than this artic le requires that the record include a statement to the effect that\nthe account debtor's recovery against an assignee with respect to claims and\ndefenses against the assignor may not exceed amounts paid by the account debtor\nunder the record, and the record  does not include such a statement, the extent to\nwhich a claim of an account debtor against the assignor may be asserted against an\nassignee is determined as if the record included such a statement.\n(5) This section does not apply to an assignment of a health-care-insurance receivable.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55700","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"1f9452955c2035790261618e57b610d09a0ffcda0af202d1f0b7232b95ab5608","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-403","next":"us-ky/krs-355.9-405"},"notice":"GroundRules: Original legal text. Not legal advice."}