Sample Notice of Assignment

Many people want to know if it is possible to keep the assignment secret from their clients i.e. debtors or creditors but you should understand that it is required by the law that when a debtor or a creditor assigns his accounts payable or receivable to a third party, he has to inform his clients about the change of the situation or else, legal action will be taken against him. Please download and study these Assignment Forms to make sure you have selected and downloaded the most relevant Assignment Form for your requirements.

An alternate for this notice not to be sent is only possible for big corporations and multinational or international organizations that fulfill certain criteria and other than that, all the assigners are legally required to inform their clients. Even if the assigners don’t inform their clients and customers about the change, the assignee has to contact these clients and customers at some point and ask them to redirect their payments and queries toward the assignee. This is why it is better that as soon you go through the process of assignment, you send this notice to your creditors or debtors and ask them to contact the new assignee and direct their payments to him.

Key Elements to Include in the Notice of Assignment:

• 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 for 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

Here is a preview of a Free Sample Sample Notice of Assignment created as a fillable PDF Form,

Here is the download link for this Sample Notice of Assignment,

Example of a Notice of Assignment:

[Assignor’s Name]
[Assignor’s Address]
[City, State, ZIP Code]
[Phone Number]
[Email Address]

[Date]

[Assignee’s Name]
[Assignee’s Address]
[City, State, ZIP Code]

[Debtor’s Name]
[Debtor’s Address]
[City, State, ZIP Code]

Subject: Notice of Assignment of Rights for Account Number [Account Number]

Dear [Debtor’s Name],

We are writing to inform you that, effective [Effective Date], [Assignor’s Name] has assigned all of its rights and interests in the [Type of Rights/Obligations, e.g., loan agreement, contract, etc.] related to account number [Account Number] to [Assignee’s Name].

As a result of this assignment, all future payments and correspondence related to this account should be directed to [Assignee’s Name] at the following address:

[Assignee’s Name]
[Assignee’s Address]
[City, State, ZIP Code]
[Phone Number]
[Email Address]

Please update your records accordingly and ensure that all future payments and communications are sent to [Assignee’s Name] starting from [Effective Date]. If you have any questions regarding this assignment or need additional information, please feel free to contact [Assignee’s Name] at [Assignee’s Phone Number] or [Assignee’s Email Address].

We appreciate your prompt attention to this matter and thank you for your cooperation.

Sincerely,

[Assignor’s Name]
[Signature]
[Title]

[Assignor’s Name]

Uses and Importance of a Notice of Assignment:

1. Legal Requirement:
   • In many jurisdictions, notifying relevant parties of an assignment is a legal requirement to ensure the transfer is recognized and enforceable.
2. Transparency:
   • Provides clarity and transparency to all parties involved, ensuring they are aware of the new arrangements and their respective obligations.
3. Continuity:
   • Ensures that there is no disruption in payments, communications, or other obligations under the assigned rights.
4. Record Keeping:
   • Helps maintain accurate records of the assignment and provides a reference document for future inquiries or disputes.
5. Dispute Prevention:
   • Reduces the risk of disputes by clearly outlining the new arrangements and providing instructions on how to proceed.

A Notice of Assignment is a crucial document in the assignment process, ensuring that all parties are properly informed and that the transition is smooth and legally binding.