2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 94 - Rights of Third Parties
Section 9405 - Modification of assigned contract

     § 9405.  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 9406(a)
        (relating to discharge of account debtor; effect of
        notification).
        (c)  Rule for individual under other law.--This section is
     subject to law other than this division 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.