Which statement correctly describes the waiver of defense clause?

• A. Any defense to collection may be asserted against any assignee.
• B. Any defense to collection must be asserted only against the original lessor, not against any assignee.
• C. It requires the lessee to waive all defenses.
• D. It prohibits assignment of the lease.

Answer: (B)

The key idea here is how a waiver of defense clause affects who can be challenged if payments are not made after a lease is assigned. This clause often means that the party receiving the lease transfer (the assignee) can collect without being subject to the defenses the lessee might have against the original lessor. Practically, any defense to payment or collection must be directed at the original lessor, not at the assignee. That keeps the assignment workable for the new lender or factor, while the lessee would need to raise any legitimate issues with the original lessor.

So the statement that best describes this is that any defense to collection must be asserted only against the original lessor, not against any assignee. The other options don’t fit: defenses aren’t allowed to be asserted against any assignee in general; the clause doesn’t require the lessee to waive all defenses, just those relevant to the assignment; and it doesn’t prohibit assignment itself.