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336.9-405 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 336.9-406(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.

HIST: 2000 c 399 art 1 s 67

* NOTE: This section, as added by Laws 2000, chapter 399, *article 1, section 67, is effective July 1, 2001. Laws 2000, *chapter 399, article 1, section 130.

* NOTE: Minnesota Statutes 1998, section 336.9-405, which *reads as follows, is repealed July 1, 2001. Laws 2000, chapter *399, article 1, section 130.

* "336.9-405 Assignment of security interest; duties of *filing officer; fees.

* (1) A financing statement may disclose an assignment of a *security interest in the collateral described in the financing *statement by indication in the financing statement of the name *and address of the assignee or by an assignment itself or a copy *thereof on the face of the statement. On presentation to the *filing officer of such a financing statement the filing officer *shall mark the same as provided in section 336.9-403, clause *(4). The uniform fee for filing, indexing, and furnishing *filing data for a financing statement so indicating an *assignment shall be the same as the fee prescribed in section *336.9-403, clause (5).

* (2) A secured party of record may record an assignment of *all or a part of the secured party's rights under a financing *statement. The assignment must be filed in the place where the *original financing statement was filed. The assignment must be *signed by the secured party of record. The assignment must *state: (i) the name and address of the secured party of record *and the debtor as those items appear on the original financing *statement or the most recently filed amendment, (ii) the file *number and the date of filing of the financing statement, (iii) *the name and address of the assignee, and (iv) a description of *the collateral assigned. A copy of the assignment is sufficient *if it complies with the preceding sentence.

* On presentation to the filing officer of such a statement, *the filing officer shall mark such separate statement with the *date and hour of the filing. The filing officer shall note the *assignment on the index of the financing statement, or in the *case of a fixture filing, or a filing covering timber to be cut, *or covering minerals or the like (including oil and gas) or *accounts subject to subsection (5) of section 336.9-103. The *filing officer shall also index the assignment under the name of *the assignor as grantor and, to the extent that the law of this *state provides for indexing the assignment of a mortgage under *the name of the assignee, index the assignment of the financing *statement under the name of the assignee.

* The uniform fee for filing, indexing, and furnishing filing *data about such a statement of assignment shall be $15 for up to *two debtor names and $15 for each additional name thereafter if *the statement is in the standard form prescribed by the *secretary of state. If the statement is in a form that is not *the standard form prescribed by the secretary of state, the fee *is $20 for up to two debtor names and $20 for each additional *name thereafter. In each case where the original financing *statement was subject to subsection (5) of section 336.9-402, *the fee prescribed by section 357.18, subdivision 1, clause (1), *is also required.

* Notwithstanding the provisions of this subsection, an *assignment of record of a security interest in a fixture *contained in a mortgage effective as a fixture filing *(subsection (6) of section 336.9-402) may be made only by an *assignment of the mortgage in the manner provided by the law of *this state other than Laws 1976, chapter 135.

* (3) After the disclosure or filing of an assignment under *this section, the assignee is the secured party of record."

Official Publication of the State of Minnesota
Revisor of Statutes