Utah Code
Utah Code § 70A-9a-404 (2026)
Rights acquired by assignee -- Claims and defenses against assignee
✓ current as of May 2026
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Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to Subsections (2) through (5), the rights of an assignee are subject to:
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
any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment signed by the assignor or the assignee.
Subject to Subsection (3) and except as otherwise provided in Subsection (4), the claim of an account debtor against an assignor may be asserted against an assignee under Subsection (1) only to reduce the amount the account debtor owes.
This section is subject to law other than this chapter 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.
In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter 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.
This section does not apply to an assignment of a health-care-insurance receivable.
Notes of Decisions
Cited in 3
cases, 2018–2020 · leading case: Lester v. Portfolio Recovery Assocs., LLC, 324 F. Supp. 3d 1227 (N.D. Ala. 2018).
Lester v. Portfolio Recovery Assocs., LLC, 324 F. Supp. 3d 1227 (N.D. Ala. 2018). “Because the right to compel arbitration for the Plaintiff's claims is not associated with legally enforcing, filing suit, collecting, settling, or a similar action with respect to the receivable, the Court cannot hold that Utah Code Ann. § 70A-9a-404, or any other (un-cited)…”
Pounds v. Portfolio Recovery Assocs. (N.C. Ct. App. 2020). “Codified Laws § 57A-9-404(a) (2019); Utah Code Ann. § 70A-9a-404(1) (2019). PRA contends it was transferred the right to compel arbitration under this statutory - 16 - POUNDS V.”
Pounds v. Portfolio Recovery Assocs. (N.C. Ct. App. 2020). “Codified Laws § 57A-9-404(a) (2019); Utah Code Ann. § 70A-9a-404(1) (2019). PRA contends it was transferred the right to compel arbitration under this statutory - 16 - POUNDS V.”
— Utah Code § 70A-9a-404(1) — 2 cases
Pounds v. Portfolio Recovery Assocs. (N.C. Ct. App. 2020). “Codified Laws § 57A-9-404(a) (2019); Utah Code Ann. § 70A-9a-404(1) (2019). PRA contends it was transferred the right to compel arbitration under this statutory - 16 - POUNDS V.”
Pounds v. Portfolio Recovery Assocs. (N.C. Ct. App. 2020). “Codified Laws § 57A-9-404(a) (2019); Utah Code Ann. § 70A-9a-404(1) (2019). PRA contends it was transferred the right to compel arbitration under this statutory - 16 - POUNDS V.”
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