LD 2245
pg. 284
Page 283 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 285 of 493
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LR 1087
Item 1

 
4. Consumer Account Debtors; Relationship to Federal Trade
Commission Rule. Subsections (c) and (d) [Maine cite subsections
(3) and (4)] also are new. Subsection (c) [Maine cite subsection
(3)] makes clear that the rules of this section are subject to
other law establishing special rules for consumer account debtors.
An "account debtor who is an individual" as used in subsection (c)
[Maine cite subsection (3)] includes individuals who are jointly or
jointly and severally obligated. Subsection (d) [Maine cite
subsection (4)] applies to rights evidenced by a record that is
required to contain, but does not contain, the notice set forth in
Federal Trade Commission Rule 433, 16 C.F.R. Part 433 (the "Holder-
in-Due-Course Regulations"). Under subsection (d) [Maine cite
subsection (4)], a consumer account debtor has the same right to an
affirmative recovery from an assignee of such a record as the
consumer would have had against the assignee had the record
contained the required notice.

 
5. Scope; Application to "Account Debtor." This section
deals only with the rights and duties of "account debtors"-and
for the most part only with account debtors on accounts, chattel
paper, and payment intangibles. Subsection (e) [Maine cite
subsection (5)] provides that the obligation of an insurer with
respect to a health-care-insurance receivable is governed by
other law. References in this section to an "account debtor"
include account debtors on collateral that is proceeds. Neither
this section nor any other provision of this Article, including
Sections 9-408 and 9-409 [Maine cite sections 9-1408 and 9-1409],
provides analogous regulation of the rights and duties of other
obligors on collateral, such as the maker of a negotiable
instrument (governed by Article 3), the issuer of or nominated
person under a letter of credit (governed by Article 5), or the
issuer of a security (governed by Article 8). Article 9 [Maine
cite Article 9-A] leaves those rights and duties untouched;
however, Section 9-409 [Maine cite section 9-1409] deals with the
special case of letters of credit. When chattel paper is
composed in part of a negotiable instrument, the obligor on the
instrument is not an "account debtor," and Article 3 governs the
rights of the assignee of the chattel paper with respect to the
issues that this section addresses. See, e.g., Section 3-601
(dealing with discharge of an obligation to pay a negotiable
instrument).

 
§9-1405.__Modification of assigned contract

 
(1)__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


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