Nevada § 104.9408 - Restrictions on assignment or transfer of promissory notes, health-care insurance receivables and certain general intangibles ineffective

§ 104.9408. Restrictions on assignment or transfer of promissory notes, health-care insurance receivables and certain general intangibles ineffective

1. Except as otherwise provided in subsections 2 and 5, a term in a promissory note

or in an agreement between an account debtor and a debtor which relates to a health-care-insurance

receivable or a general intangible, including a contract, permit, license or franchise,

and prohibits, restricts or requires the consent of the person obligated on the promissory

note or the account debtor to, the assignment or transfer of, or creation, attachment,

or perfection of a security interest in, the promissory note, health-care-insurance

receivable or general intangible, is ineffective to the extent that the term: (a) Would impair the creation, attachment or perfection of a security interest; or (b) Provides that the assignment or transfer, or the creation, attachment or perfection

of the security interest may give rise to a default, breach, right of recoupment,

claim, defense, termination, right of termination or remedy under the promissory note,

health-care-insurance receivable or general intangible. 2. Subsection 1 applies to a security interest in a payment intangible or promissory

note only if the security interest arises out of a sale of the payment intangible

or promissory note, other than a sale pursuant to a disposition under NRS 104.9610 or an acceptance of collateral under NRS 104.9620 . 3. Except as otherwise provided in subsection 5, a rule of law, statute, or regulation

that prohibits, restricts, or requires the consent of a government, governmental body

or official, person obligated on a promissory note, or account debtor to the assignment

or transfer of, or creation of a security interest in, a promissory note, health-care-insurance

receivable or general intangible, including a contract, permit, license or franchise

between an account debtor and a debtor, is ineffective to the extent that the rule

of law, statute or regulation: (a) Would impair the creation, attachment or perfection of a security interest; or (b) Provides that the assignment or transfer, or the creation, attachment or perfection

of the security interest may give rise to a default, breach, right of recoupment,

claim, defense, termination, right of termination or remedy under the promissory note,

health-care-insurance receivable or general intangible. 4. To the extent that a term in a promissory note or in an agreement between an account

debtor and a debtor which relates to a health-care-insurance receivable or general

intangible or a rule of law, statute, or regulation described in subsection 3 would

be effective under law other than this article but is ineffective under subsection

1 or 3, the creation, attachment or perfection of a security interest in the promissory

note, health-care-insurance receivable or general intangible: (a) Is not enforceable against the person obligated on the promissory note or the

account debtor; (b) Does not impose a duty or obligation on the person obligated on the promissory

note or the account debtor; (c) Does not require the person obligated on the promissory note or the account debtor

to recognize the security interest, pay or render performance to the secured party

or accept payment or performance from the secured party; (d) Does not entitle the secured party to use or assign the debtor's rights under

the promissory note, health-care-insurance receivable or general intangible, including

any related information or materials furnished to the debtor in the transaction giving

rise to the promissory note, health-care-insurance receivable or general intangible; (e) Does not entitle the secured party to use, assign, possess or have access to any

trade secrets or confidential information of the person obligated on the promissory

note or the account debtor; and (f) Does not entitle the secured party to enforce the security interest in the promissory

note, health-care-insurance receivable or general intangible. 5. This section does not apply to a security interest in an ownership interest in

a general partnership, limited partnership or limited-liability company. 6. In this section, “ promissory note ” includes a negotiable instrument that evidences chattel paper.