Section 41
Priority of interests on assignment of account receivable or non-negotiable chattel paper
ActIn forceProvision 37 of 87
Section 41
(1)
The rights of an assignee of an account receivable or non-negotiable chattel paper shall be subject to —
(a)
the terms of the contract between the account debtor and the assignor and any defence or claim arising from the contract or a closely connected contract; and
(b)
any other defence or claim of the account debtor against the assignor (including a defence by way of a right of set-off) that accrues before the account debtor receives notification of the assignment.
(2)
In this section, “assignee” includes a transferee or other secured party.