Sample Notice of Assignment to Obligor
When a debtor or creditor assigns his debt or credit to a third party, by the law and government regulations, he is required to send a formal notification to his obligors in order to inform them about the change of the situation and to advise them about the further instructions of payments and responsibilities and obligations towards the assignee. This notification letter is known as the notice of assignment to obligor.
What kind of information the Notice of Assignment to Obligor Should Include:
This is a simple notification letter that either the assigner or the assignee can send to obligors. Usually the assignee sends this letter but in case the obligors don’t know about the change of the situation, they ask for some kind of verification or proof from the assignee. This is why it is important that when you send this letter, you include the names of the assigner and assignee along with the date on which you have assigned the assignment to the assignee. This letter should also include identification of the assignee, the terms and conditions on which you have assigned the assignment to the assignee and the type of assignment along with expiration or validation of the assignment in case of limited assignment and partial assignment. If you went with partial assignment, you have this responsibility of letting your obligors know about the division of responsibilities and obligations towards your obligors.
Who should send the Notice of Assignment to Obligor?
When we talk about the responsibility of sending this notice to the obligors, this obligation lies on the shoulders of either the assigner or the assignee but in most cases the assignee usually sends this notice. Although there are no boundaries or limitations about who should send this notice but as assigners free themselves from their responsibilities after assignment, it is responsibility of the assignee to inform the creditors or debtors about the change of the situation because if the obligors don’t know about the change and send the payments to the assignor, the assignee will have to go through extra trouble of asking those payments back.
Key elements to include in the Notice of Assignment to Obligor:
- Name of the person who is assigning his assets or property to a third party i.e. assigner with complete address
- Name of the third party who has been assigned with property or assets i.e. assignee with complete address
- Date when the notice of assignment is being sent to the receivers
- Reasons of assigning the assets or property to the assignee as explained by the assigner (not necessary)
- Date from which the receivers are advised to redirect their queries and payments to the assignee
- Duration of assignment or expiration of the assignment (if applicable)
- Details of responsibilities, rights and obligations of the assignee towards the receivers of the notice
- Signature of the sender of the notice i.e. assigner or assignee
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