California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2b — Automobile Sales Finance Act, Section 2983.5
(a) An assignee of the seller’s right is subject to all equities and defenses of the buyer against the seller, notwithstanding an agreement to the contrary, but the assignee’s liability may not exceed the amount of the debt owing to the assignee at the time of the assignment.
(b) The assignee shall have recourse against the seller to the extent of any liability incurred by the assignee pursuant to this section regardless of whether the assignment was with or without recourse.
Notes
Establishes that an assignee of a seller’s rights takes subject to all buyer equities and defenses against the seller despite contrary agreement, but limits the assignee’s liability to the debt owed to the assignee at assignment. Requires the assignee to have recourse against the seller for liability incurred under this rule whether the assignment was with or without recourse.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2983.5 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2b/section-2983-5