LD 2245
pg. 286
Page 285 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 287 of 493
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LR 1087
Item 1

 
3. Consumer Account Debtors. Subsection (c) [Maine cite
subsection (3)] is new. It makes clear that the rules of this
section are subject to other law establishing special rules for
consumer account debtors.

 
4. Account Debtors on Health-Care-Insurance Receivables.
Subsection (d) [Maine cite subsection (4)] also is new. It
provides that this section does not apply to an assignment of a
heath-care-insurance receivable. The obligation of an insurer
with respect to a health-care-insurance receivable is governed by
other law.

 
§9-1406.__Discharge of account debtor; notification of

 
assignment; identification and proof of assignment;

 
restrictions on assignment of accounts, chattel paper,

 
payment intangibles, and promissory notes ineffective

 
(1)__Subject to subsections (2) through (9), an account debtor
on an account, chattel paper, or a payment intangible may
discharge its obligation by paying the assignor until, but not
after, the account debtor receives a notification, authenticated
by the assignor or the assignee, that the amount due or to become
due has been assigned and that payment is to be made to the
assignee.__After receipt of the notification, the account debtor
may discharge its obligation by paying the assignee and may not
discharge the obligation by paying the assignor.

 
(2)__Subject to subsection (8), notification is ineffective
under subsection (1):

 
(a)__If it does not reasonably identify the rights assigned;

 
(b)__To the extent that an agreement between an account
debtor and a seller of a payment intangible limits the
account debtor's duty to pay a person other than the seller
and the limitation is effective under law other than this
Article; or

 
(c)__At the option of an account debtor, if the notification
notifies the account debtor to make less than the full
amount of any installment or other periodic payment to the
assignee, even if:

 
(i)__Only a portion of the account, chattel paper or
general intangible has been assigned to that assignee;

 
(ii)__A portion has been assigned to another assignee;
or


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