Ky. Rev. Stat. » Chapter 371
Kentucky Revised Statutes

Ky. Rev. Stat. § 371.040 (2026)

Bonds, bills and notes assignable -- Effect of assignment

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All bonds, bills or notes for money or property are assignable so as to vest the right of action in the assignee; but, except in the case of negotiable instruments, the assignment shall not impair the right to any defense, discount or set-off that the defendant has and might have used against the original obligee, or any intermediate assignor, before the defendant received notice of the assignment. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 474.

Notes of Decisions
Cited in 1 case, 1960–1960 · leading case: Walter J. Hieb Sand & Gravel, Inc. v. Universal C. I. T. Credit Corp., 332 S.W.2d 619 (Ky. Ct. App. 1960).
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Walter J. Hieb Sand & Gravel, Inc. v. Universal C. I. T. Credit Corp., 332 S.W.2d 619 (Ky. Ct. App. 1960). “In Kentucky it is provided by statute, KRS 371.040, that an “assignment shall not impair the right to any defense, discount or set-off that the defendant has and might have used against the original obligee, or any intermediate assignor, before the defendant received notice of…”
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