Illinois Compiled Statutes
810 ILCS 5/9-403 (2026)
Agreement not to assert defenses against assignee
✓ current as of May 2026
Find cases:
SyfertCases citing this section
IL-ILGAilga.gov
JustiaChapter on Justia
CornellLII Search
CasesGoogle Scholar
(810 ILCS 5/9-403)
(from Ch. 26, par. 9-403)
Sec. 9-403.
Agreement not to assert defenses against assignee.
(a) "Value." In this Section, "value" has the meaning provided in
Section 3-303(a).
(b) Agreement not to assert claim or defense. Except as
otherwise provided in this Section, an agreement between an account debtor and
an
assignor not to assert against an assignee any claim or defense that the
account
debtor may have against the assignor is enforceable by an assignee that takes
an
assignment:
(1) for value;
(2) in good faith;
(3) without notice of a claim of a property or | possessory right to the property assigned; and |
(4) without notice of a defense or claim in | recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under Section 3-305(a). |
(c) When subsection (b) not applicable. Subsection (b) does not
apply to defenses of a type that may be asserted against a holder in due course of a
negotiable instrument under Section 3-305(b).
(d) Omission of required statement in consumer transaction. In
a consumer transaction, if a record evidences the account debtor's obligation, law
other than this Article requires that the record include a statement to the effect that
the rights of an assignee are subject to claims or defenses that the account debtor
could assert against the original obligee, and the record does not include such a
statement:
(1) the record has the same effect as if the record | included such a statement; and |
(2) the account debtor may assert against an assignee | those claims and defenses that would have been available if the record included such a statement. |
(e) Rule for individual under other law. 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.
(f) Other law not displaced. Except as otherwise provided in
subsection (d), this Section does not displace law other than this Article which
gives effect to an agreement by an account debtor not to assert a claim or
defense
against an assignee.
(Source: P.A. 90-300, eff. 1-1-98; 91-357, eff. 7-29-99; 91-893, eff.
7-1-01.)
Notes of Decisions
Cited in 3
cases (1 in the last 5 years), 2002–2022 · leading case: In Re Billingsley, 290 B.R. 345 (Bankr. C.D. Ill. 2002).
In Re Billingsley, 290 B.R. 345 (Bankr. C.D. Ill. 2002). “There were a number of ways for Niemerg to perfect its security interest in the stock: (1) possession, see 810 ILCS 5/8 — 104(a)(1) and 810 ILCS 5/8-301(a)(l); (2) filing a financing statement, see 810 ILCS 5/9-401 and 810 ILCS 5/9-403; (3) levying against the stock, see 735…”
IFC Credit Corp. v. United Bus. & Indus. Fed. Credit Union, 474 F. Supp. 2d 956 (N.D. Ill. 2006). “810 ILCS 5/9-403(b). In Walter E. Heller & Co.”
White v. Funeral Fin. Sys., Ltd, 2022 IL App (1st) 201385-U (Ill. App. Ct. 2022). “810 ILCS 5/9-403(2) (West 2000). To be clear, White never became a lien creditor before 2004.”
— 810 ILCS 5/9-403(2) — 1 case
White v. Funeral Fin. Sys., Ltd, 2022 IL App (1st) 201385-U (Ill. App. Ct. 2022). “810 ILCS 5/9-403(2) (West 2000). To be clear, White never became a lien creditor before 2004.”
— 810 ILCS 5/9-403(b) — 1 case
IFC Credit Corp. v. United Bus. & Indus. Fed. Credit Union, 474 F. Supp. 2d 956 (N.D. Ill. 2006). “810 ILCS 5/9-403(b). In Walter E. Heller & Co.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.
|