Code of Alabama

Ala. Code § 8-5-25 (2026)

Contracts, Writings and Paper Circulated as Money Subject to Payments, Setoffs and Discounts Prior to Notice of Assignment.

✓ official Alabama Legislature (ALISON) text, current July 2026

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All contracts and writings, except such as are governed by the Uniform Commercial Code, and paper issued to circulate as money, are subject to all payments, setoffs, and discounts had or possessed against the same previous to notice of an assignment or transfer.

(Code 1852, §1531; Code 1867, §1839; Code 1876, §2100; Code 1886, §1765; Code 1896, §879; Code 1907, §5161; Code 1923, §9237; Code 1940, T. 39, §206; Acts 1965, No. 549, p. 811.)

Notes of Decisions

Cited in 1 case, 1993–1993 · leading case: Head v. S. Dev. Co., 614 So. 2d 1044 (Ala. 1993).

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Head v. S. Dev. Co., 614 So. 2d 1044 (Ala. 1993). · cites it 3× “” “The language of this statute [§ 8-5-25] is consistent with the wording of § 167(1) of the Restatement of Contracts (1932), which provides: “ ‘An assignee’s right against the obli-gor is subject to all limitations of the obligee’s right, to all absolute and temporary defenses…”

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