J. MILLARD TAWES, Governor                        935

(b) any other defense or claim of the account debtor against the
assignor which accrues before the account debtor receives notifica-
tion of the assignment.

(2)  So far as the right to payment under an assigned contract
right has not already become an account, and notwithstanding noti-
fication of the assignment, any modification of or substitution for the
contract made in good faith and in accordance with reasonable com-
mercial standards is effective against an assignee unless the account
debtor has otherwise agreed but the assignee acquires correspond-
ing rights under the modified or substituted contract. The assignment
may provide that such modification or substitution is a breach by
the assignor.

(3)  The account debtor is authorized to pay the assignor until
the account debtor receives notification that the account has been
assigned and that payment is to be made to the assignee. A notifica-
tion which does not reasonably identify the rights assigned is in-
effective. If requested by the account debtor, the assignee must
seasonably furnish reasonable proof that the assignment has been
made and unless he does so the account debtor may pay the assignor.

(4) A term, in any contract between an account debtor and an
assignor which prohibits assignment of an account or contract right
to which they are parties is ineffective.

Part 4
Filing

9—401. Place of Filing; Erroneous Filing; Removal of Collateral.—

(1) The proper place to file in order to perfect a security interest
is as follows:

(a) When the collateral is equipment used in farming operations,
or farm products, or accounts, contract rights or general intangibles
arising from or relating to the sale of farm products by a farmer, or
consumer goods then in the office of the clerk of the circuit court in the

county of the debtor's residence or if the debtor is not a resident of

this State then in the office of the clerk of the circuit court in the

county where the goods are kept, and in addition when the collateral

is crops in the office of the clerk of the circuit court in the county

where the land on which the crops are growing or to be grown is

located;

(c) in all other other cases, in the office of the State Department

Assessments and Taxation and in addition, if the debtor has a place

or places of business in only one county of this State, then also in the

office of the clerk of the circuit court of the one county in which he

has his place or places of business, if any, or if the debtor has no

place of business in this State, but resides in this State, then also

in the office of the clerk of the circuit court of the county in which he

resides.

(b) when the collateral is goods which at the time the security

interest attaches are or are to become fixtures, then in the office

where a mortgage on the real estate concerned would be filed or

recorded: