The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 9-405)
-
§ 9—405. Modification of assigned contract
(a) 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) of this section.
(b) Subsection (a) of this section 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 subsection 9—406(a) of this title.
(c) 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) This section does not apply to an assignment of a health care insurance receivable. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)