2006 New York Code - Modification Of Assigned Contract

 
  Section 9--405. Modification of Assigned Contract.
    (a) Effect   of   modification  on  assignee.  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 (b) through (d).
    (b) Applicability of subsection (a). Subsection  (a)  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 Section 9--406(a).
    (c) Rule for individual under other law. This section  is  subject  to
  law  other  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.
    (d) Inapplicability  to health-care-insurance receivable. This section
  does not apply to an assignment of a health-care-insurance receivable.