<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>78678</law_id><section_number>8.9A-405</section_number><catch_line>Modification of assigned contract</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="8.9A">Commercial Code &#x2014; Secured Transactions</unit><unit label="part" level="2" order_by="1" identifier="4">Rights of Third Parties</unit></structure><text>
						<section id="a"><p><span class="prefix-number">a.</span> Effect of modification on assignee. A modification of or substitution for an assigned <span class="dictionary">contract</span> is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted <span class="dictionary">contract</span>. The assignment may provide that the modification or substitution is a breach of <span class="dictionary">contract</span> by the assignor. This subsection is subject to subsections (b) through (d). <a id="paragraph-281913" class="section-permalink" href="https://vacode.org/8.9A-405/#a"><i class="fa fa-link"/></a></p></section>
						<section id="b"><p><span class="prefix-number">b.</span> Applicability of subsection (a). Subsection (a) applies to the extent that: <a id="paragraph-281914" class="section-permalink" href="https://vacode.org/8.9A-405/#b"><i class="fa fa-link"/></a></p></section>
						<section id="b1" class="indent-1"><p><span class="prefix-number">1.</span> the right to payment or a part thereof under an assigned <span class="dictionary">contract</span> has not been fully earned by performance; or <a id="paragraph-281915" class="section-permalink" href="https://vacode.org/8.9A-405/#b1"><i class="fa fa-link"/></a></p></section>
						<section id="b2" class="indent-1"><p><span class="prefix-number">2.</span> the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under &#xA7; <a class="law" title="Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective" href="/8.9A-406/">8.9A-406</a> (a). <a id="paragraph-281916" class="section-permalink" href="https://vacode.org/8.9A-405/#b2"><i class="fa fa-link"/></a></p></section>
						<section id="c"><p><span class="prefix-number">c.</span> Rule for individual under other <span class="dictionary">law</span>. This section is subject to <span class="dictionary">law</span> other than this title 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. <a id="paragraph-281917" class="section-permalink" href="https://vacode.org/8.9A-405/#c"><i class="fa fa-link"/></a></p></section>
						<section id="d"><p><span class="prefix-number">d.</span> Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a health-care-insurance receivable. <a id="paragraph-281918" class="section-permalink" href="https://vacode.org/8.9A-405/#d"><i class="fa fa-link"/></a></p></section></text><history>1964, c. 219, &#xA7; 8.9-318; 1973, c. 509; 2000, c. 1007.</history><metadata></metadata></law>
