The UCC 9-406(c) Proof of Assignment subsection refers to subsection (h). It states the following:
9-406(h): "This section is subject to law other than this article 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"
My question is twofold. 1) What law(s) is subsection (h) referring to? AND 2) Does that law override the proof of assignment subsection when seeking to prove assignments?
You have entered into the UCC which is the Uniform Commercial Code for other readers. The UCC can get very complex. I don't want to give too much background, but I think that it will help you understand the answer to your question. The UCC was promulgated by a bunch of smart business men and attorneys. It is not recognized as federal law and it is only recognized as state law if that particular state has adopted it. Some states have adopted the UCC in its entirety and others have adopted some version of it (most states).
I imagine we are talking about Utah as you are here in St. George.
The first questions you need to ask to make sure the answer you are requesting is relevant to you is whether Utah has adopted Article 9 of the UCC and also whether they have adopted the most recent version of article 9 of the UCC. There have been two major revisions for article 9 in the last 30 years. The first was in 1999 and the second was in 2010. Utah did not adopt the 2010 amendments when they came out. It does seem though, that they have adopted a majority of it including the amendments made to Article 9, but there are slight differences. I give this history only to make you aware of complex nature of your question and depending on what you really want to know, your question may solicit a completely irrelevant response although it may be accurate.
If however you are not worried about Utah specific Law and this question is about the most recent version of the Uniform Commercial Code then your answer could be different.
I am assuming you want the law relevant to Utah and I will proceed to answer your question based on that assumption.
UCC Article 9 deals with secure transactions. Basically transactions that backed by something other than faith that the debtor will will pay it back. Section 4 of Article 9 deals with the rights of third parties in secure transactions. When reading statutes it is necessary to pay attention to the section headings otherwise you may think something applies and it won't. Section 406 in the rights of third parties deals with 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.
Utah Code Section 70A-9a-406(8) (note how it is not "h" as formatted in the UCC). States, "This section is subject to law other than this chapter 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." (but has the exact same wording).
Thanks for hanging with me. Now to answer your question directly, "What law(s) is subsection  referring to?
Debtors may incur debt from a variety of transactions. If two members of the same LLC have an operating agreement and which says, if partner A wants out then partner B has to buy Partner A which has effectively made Partner B a debtor to Partner A. If in the operating agreement it also governs who Partner A is able to make that assignment to, then the laws of the contract or more accurately the common law of being able to make a contract how you want it will govern that transaction not the laws of UCC as adopted by the State of Utah. There are other laws that deal with injuries relating to health care medical malpractice that govern who can take on another
s debt. There are also laws that deal with special needs trusts that deal with who can take and receive assignments. The language in this section is very broad because the application of UCC 9-406 is also very broad and covers many area of law.
This brings me to answer your second question, and the answer to that has to be, "it depends". I would have to know the circumstances of the transaction whether or not some of these other areas of law say something about that transaction.
I hope this helps. Sorry for the lengthy response.
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