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Factor Of Receivables Failed To Give Adequate Notice Of Assignment To Account Debtor

LexisNexis (March 1, 2017, 12:29 PM EST) -- Codifying basic contract assignment principles, UCC 9-406(a) provides:

An account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee.  After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge...
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