An assignment is a transfer of rights that a party has under a contract to another person, called an assignee. The assigning party is called the assignor. If the obligor (person obligated to pay) 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. If the obligor does not know of the assignment and makes payments to the assignor who does not turn the money over to the assignee, the assignee cannot sue the obligor, but does have a remedy against the assignor. However, if the obligor both knows of the assignment and has been notified to make future payments to the assignee, any payments made by the obligor to the assignor have no effect and do not reduce the debt of the obligor.
The Minnesota Notice of Assignment is a legal document that serves to notify third parties of a debtor's assignment of their rights to receive payments or funds to a new party, known as the assignee. This notice is crucial in protecting the rights and interests of the assignee and ensuring that any existing debts owed to the assignor are redirected and paid directly to the assignee. In Minnesota, there are different types of Notice of Assignment, each serving a specific purpose: 1. General Notice of Assignment: This type of notice is used to inform all relevant parties, such as debtors, creditors, and other interested parties, about the assignment of rights. It serves as public notification and establishes the assignee's claim to the assigned funds or payments. 2. Notice of Assignment to Debtor: This notice is specifically directed to the debtor who owes the assigned payments or debts. It informs the debtor about the transfer of their obligations to a new party and advises them to redirect their payments to the assignee. 3. Notice of Limited Assignment: This type of notice is used when the assignment of rights is limited to a specific timeframe or a particular set of obligations. It outlines the specific terms and conditions of the limited assignment, ensuring clarity and avoiding any confusion. 4. Notice of Assignment of Accounts Receivable: This notice is used when the assignment involves accounts receivable, which are unpaid invoices or outstanding payments owed to a business. It informs the relevant parties, including debtors and creditors, about the assignment and instructs them on how to redirect future payments to the assignee. The Minnesota Notice of Assignment is an essential document in the field of finance, ensuring transparency and legal compliance when transferring rights to receive payments or funds. It establishes the assignee's rights and obligations, protects them from potential disputes, and ensures a smooth transition of monetary obligations from the assignor to the assignee.
