Nebraska Court Rules That A Secured Loan Is Not An “Assignment” For Purpose Of Imposing Liability On An Account Debtor Who Fails To Respond To A Deflection Notice

LexisNexis (December 9, 2019, 10:47 AM EST) -- UCC 9-406 provides that 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 deflection notice, 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 the obligation by paying the assignor....