Mississippi Code

Miss. Code Ann. § 75-9-404 (2026)

Rights acquired by assignee; claims and defenses against assignee

✓ current as of July 2026

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(a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:
- (1) All terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and
- (2) Any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.

(b) Subject to subsection (c) and except as otherwise provided in subsection (d), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) only to reduce the amount the account debtor owes.

(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) 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 account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.

(e) This section does not apply to an assignment of a health-care-insurance receivable.

Former 1972 Code § 75-9-404 [Codes, 1942, § 41A:9-404; Laws, 1966, ch. 316, § 9-404; Laws, 1977, ch. 452, § 27; Laws, 1978, ch. 401, § 1; Laws, 1985, ch. 381, § 2, eff. 7/1/1985] is now found in comparable provisions enacted at § 75-9-513 by Laws, 2001, ch. 495, § 1. Present § 75-9-404 was derived from former 1972 Code § 75-9-318 [Codes, 1942, § 41A:9-318; Laws, 1966, ch. 316, § 9-318; Laws, 1977, ch. 452, § 23, eff. 4/1/1978] and was enacted by Laws, 2001, ch. 495, § 1, eff. 1/1/2002.

Notes of Decisions

Cited in 2 cases, 2016–2016 · leading case: Guar. Bank & Trust Co. v. Agrex, Incorporat, 820 F.3d 790 (5th Cir. 2016).

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Guar. Bank & Trust Co. v. Agrex, Incorporat, 820 F.3d 790 (5th Cir. 2016). · cites it 7× “FGDI argues that, instead of the FSA, Miss. Code Ann. § 75-9-404 governs the instant case, under which FGDI argues that its set-off rights take priority over Guaranty’s PMSI.”

Guar. Bank & Trust Co. v. Agrex, Incorporat (5th Cir. 2016). · cites it 8× “FGDI argues that, instead of the FSA, Miss. Code Ann. § 75-9-404 governs the instant case, under which FDGI argues that its set-off rights take priority over Guaranty’s PMSI.”

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