Cessio
Assignment
Cessio is the assignment of a nominative claim from one creditor (the cedent) to another party (the cessionary).
Cessio, also referred to in Dutch as cessie, is a mechanism for transferring a claim without requiring the debtor’s cooperation. The transfer is effected by means of a deed of assignment together with notice to the debtor, following which the assignee may collect the claim.
This legal institution is of particular relevance in commercial practice, as it facilitates the trading of receivables, for instance in the context of factoring, securitisation or the sale of debt portfolios. Absent assignment, creditors would not be able to transfer their claims with ease.
In practice, assignment is widely employed by banks, debt collection agencies and undertakings seeking to enhance liquidity through the sale of outstanding invoices.
“The entrepreneur has assigned its outstanding claim to the bank by way of cession in order to obtain immediate liquidity.”
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