Source: http://www.narf.org/nill/Codes/MN_chippewa_leech_lake/T9_C4.html
Timestamp: 2014-10-24 15:24:39
Document Index: 328860453

Matched Legal Cases: ['§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 104', '§ 1396', '§ 9', '§ 9']

Title 9. Secured Transactions Ordinance Chapter 4. Rights of Third Parties TITLE 9-401. ALIENABILITY OF DEBTORS RIGHTS
LLOjibwe JCT9 STO § 9-401
Whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this ordinance; however, an agreement between a debtor and secured party which prohibits a transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect. This section is subject to Title 9-404, which invalidates certain legal and contractual restrictions on transferability that generally would be effective under other law. Effective July 1, 2010. Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-401, LLOjibwe JCT9 STO § 9-401 LLOjibwe JCT9 STO § 9-402
The existence of a security interest or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions. Effective July 1, 2010. Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-402, LLOjibwe JCT9 STO § 9-402
LLOjibwe JCT9 STO § 9-403
9-403. Rights of Assignee
(a) Waiver-of-defense clauses; limitations thereon. 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 in good faith, and for value as defined in the law governing negotiable instruments, except as to claims or defenses that may be asserted against a holder in due course of a negotiable instrument. However, such an agreement is not enforceable if (1) the agreement relates to an obligation incurred on account of a sale or lease of goods or services; (2) the account debtor seeks or acquires the goods or services primarily for personal, family or household use; and (3) the assignor, in the ordinary course of its business, sells or leases goods or services to consumers. (b) Parallel rule for negotiable instruments. If a negotiable promissory note represents an obligation incurred on account of a sale or lease of goods or service, and the issuer seeks or acquires the goods or services primarily for personal, family or household use, and the payee, in the ordinary course of its business, sells or leases goods or services to consumers, then the issuer may assert any claims and defenses against a person entitled to enforce the note, including a holder in due course. (c) Assignee's rights subject to terms, claims and defenses. Except to the extent an agreement to the contrary is enforceable under subsection (a), the rights of an assignee are subject to reduction of the amount owed by reason of all terms of the contract between the account debtor and assignor, 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 adequate notification of the assignment signed by the assignor or the assignee. This subsection does not apply to the assignee of a health-care-insurance receivable. (d) Discharge of account debtor or party to instrument. An account debtor or party to a negotiable promissory note may discharge its obligation by paying the assignor or person formerly entitled to enforce the note until, but not after, such account debtor or party receives: (1) adequate notification that performance is to be rendered to the assignee or transferee, signed (A) in the case of an account debtor, by the assignor or assignee, and (B) in the case of a negotiable promissory note, by the transferor or transferee; and (2) if requested by such account debtor or party, reasonable proof of the assignment or transfer. In the case of an account debtor, discharge under this subsection is effective notwithstanding an otherwise enforceable agreement not to assert claims or defenses. In the case of a party to a negotiable promissory note, discharge under this subsection is effective against a holder in due course. (e) Modifications of contract. A modification of or substitution for an assigned contract is effective against an assignee to the extent provided by law other than this ordinance. Effective July 1, 2010. Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-403, LLOjibwe JCT9 STO § 9-403
LLOjibwe JCT9 STO § 9-404
9-404. Restrictions on Assignment
(a) Commercially harmful restrictions on alienation invalid. A commercially harmful restriction on alienation (subsections (b), (c) and (d)) of property is invalid. (b) Commercially harmful defined for certain transactions. In an assignment of accounts other than health-care-insurance receivables, an assignment of chattel paper, an assignment of payment intangibles that is not a sale, or a transfer of promissory notes that is not a sale, the term “commercially harmful restriction on alienation” means a term in an agreement between an account debtor and an assignor, or in a promissory note, to the extent that it (1) prohibits, restricts, or requires the consent of the account debtor or person obligated on the promissory note, to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the affected property; or (2) provides that such an assignment, transfer, creation, attachment, perfection, or enforcement may give rise to a default or remedy. (c)(1) Commercially harmful defined less broadly for other transactions. In an assignment of a health-care-insurance receivable, a sale of promissory notes, a sale of payment intangibles, or a security interest in other general intangibles (including a contract, permit, or license, or franchise) that is not a sale, the term “commercially harmful restriction on alienation” has the same meaning as in subsection (b) except that the references to enforcement of a security interest appearing in subsection (b)(1) and (2) are excluded. (2) Limitation on effect in such other transactions. To the extent a commercially harmful restriction on alienation under paragraph (c)(1) would otherwise be effective under law other than this ordinance, the creation, attachment, or perfection of the security interest: (A) does not impose a duty or obligation on the account debtor or person obligated on the promissory note; (B) is not enforceable against the account debtor or person obligated on the promissory note; and (C) does not entitle the secured party to: (i) use the debtor's rights in or to the property; (ii) have access to trade secrets or confidential information of the account debtor or person obligated on the promissory note; or (iii) enforce the security interest. (d) Rule of law as commercially harmful restriction. In addition to the meanings set forth in subsections (b) and (c), the term “commercially harmful restriction on alienation” includes a rule of law to the extent that it (1) requires the consent of a governmental body or official to the assignment or transfer of, or actions described in subsection (b) or (c), as applicable, regarding a security interest in, the property; or (2) has any of the effects of a commercially harmful restriction on alienation as defined in subsection (b) or (c), as applicable. (e) Deferral to consumer law; inapplicability. This section is subject to any different rule in other law for a consumer. In addition, this section does not apply to an assignment of (1) a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2), as the same may be amended from time to time; (2) a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. § 1396p(d)(4), as the same may be amended from time to time. (3) a structured settlement payment right; or (4) a right to payment of winnings in a lottery or other game of chance regulated by law other than this ordinance. Effective July 1, 2010. Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-404, LLOjibwe JCT9 STO § 9-404