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Assignments: Paying Agent Not Liable to Assignee

In a recent opinion by the U.S. Court of Appeals for the Ninth Circuit, the court held that the account debtor's payment obligations do not extend to its agent.

26 minute read November 20, 2008 at 03:49 PM
By
Barry A. Graynor
Assignments: Paying Agent Not Liable to Assignee

Section 9406(a) of the Uniform Commercial Code provides that once an account debtor receives notification that the account has been assigned, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.

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