Secured Transactions Act · s 41

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s 41Priority of interests on assignment of account receivable or non-negotiable chattel paper

(1)

The rights of an assignee of an account receivable or non-negotiable chattel paper shall be subject to —

(a)

the terms of the contract between the account debtor and the assignor and any defence or claim arising from the contract or a closely connected contract; and

(b)

any other defence or claim of the account debtor against the assignor (including a defence by way of a right of set-off) that accrues before the account debtor receives notification of the assignment.

(2)

In this section, “assignee” includes a transferee or other secured party.