Cessie
Assignment
Assignment is the transfer of a nominative claim to a third party. This is effected by a deed of assignment followed by notification to the debtor.
Assignment is a form of transfer of a receivable whereby the assignor transfers the receivable to the assignee. The transfer is effected by means of a deed and requires notification to the debtor in order to take effect vis-à-vis the debtor and third parties.
In practice, assignment is widely used in factoring, securitisation and as a security instrument. It enables creditors to liquidate their receivables without the debtor’s consent.
The rules governing assignment are laid down in Article 3:94 of the Dutch Civil Code and form an essential part of property law in the financing of undertakings.
“The supplier has assigned its claim against the customer to the bank by way of assignment.”
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