A valid assignment takes effect the moment it is made regardless of whether notice of the assignment is given to the other party to the contract. If the obligor is notified that there has been an assignment and that any money due must be paid to the assignee, the obligor's obligation can only be discharged by making payment to the assignee. In other words, payment to the assignor would not satisfy the contract after notice.
Title: Understanding the Kentucky Notice of Assignment by Assignee of Right to Payments Introduction: The Kentucky Notice of Assignment by Assignee of Right to Payments is a legal document used to formalize the transfer of a debtor's rights to receive payments to a third party or an assignee. By issuing this notice, the assignee notifies the debtor and any other interested parties of the change in payment recipient. In Kentucky, there are two main types of Notice of Assignment by Assignee of Right to Payments: voluntary assignments and assignments for the benefit of creditors. 1. Voluntary Assignment by Assignee of Right to Payments: A voluntary assignment occurs when a debtor willingly assigns their rights to future payments to an assignee. This type of assignment is usually done as part of a contractual agreement or to facilitate debt restructuring. The Notice of Assignment by Assignee of Right to Payments is crucial in providing notice to the debtor's obliged (the party responsible for making the payments) so that payments can be redirected to the assignee. 2. Assignment for the Benefit of Creditors: An assignment for the benefit of creditors is a type of assignment made by a debtor who is unable to repay their debts. In this scenario, the debtor voluntarily assigns their right to future payments to an assignee, who will then use the proceeds to satisfy the debtor's outstanding obligations to creditors. The assignee will distribute the payments according to a predetermined plan approved by the court. The Notice of Assignment by Assignee of Right to Payments is crucial in informing the obliged and the creditors about the assignment, directing them to make payments directly to the assignee. Key Elements in the Notice of Assignment by Assignee of Right to Payments: 1. Assignee Information: The notice includes the assignee's name, address, contact details, and relevant identification or registration numbers. 2. Debtor Information: It provides details about the debtor, including their name, address, and relevant identification or account numbers. 3. Obliged Information: The notice identifies the obliged(s) responsible for making the payments and provides their name, contact details, and payment instructions to redirect future payments to the assignee. 4. Effective Date: The notice mentions the date when the assignment becomes effective, ensuring that payments made after that date are directed to the assignee. 5. Governing Law: The notice states that the assignment is governed by Kentucky law, establishing the jurisdiction for any legal disputes or concerns related to the assignment. Conclusion: The Kentucky Notice of Assignment by Assignee of Right to Payments is an essential legal document facilitating the transfer of a debtor's right to receive payments to an assignee. Whether it is a voluntary assignment or an assignment for the benefit of creditors, creditors, debtors, and obliges need to be familiar with the contents of this notice to comply with the assignment and direct payments accordingly.
