Notice to Account Debtor of Assignment
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FAQ
For example, if a company sells goods to another company on credit, the buyer becomes the account debtor and owes the seller the amount of the purchase. Similarly, if a person takes out a loan from a bank, they become the account debtor and must repay the loan ing to the terms of the agreement.
(3) ?Account debtor? means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper. (C) Identifying the components of the obligations in reasonable detail.
Section 1309.406 Discharge of account debtor - UCC 9-406. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. (c) The account debtor knows that the assignment to that assignee is limited.
An account debtor is someone who owes an obligation by virtue of an account, chattel paper, or general intangible.
The difference between a debtor and a creditor is that the creditor is the one who lends money in a credit relationship, and the debtor is the one who borrows it.
(3) ?Account debtor? means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
Uniform Commercial Code. § 9-406. DISCHARGE OF ACCOUNT DEBTOR; NOTIFICATION OF ASSIGNMENT; IDENTIFICATION AND PROOF OF ASSIGNMENT; RESTRICTIONS ON ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT INTANGIBLES, AND PROMISSORY NOTES INEFFECTIVE.
Debtor meaning: This is money that is owed to the business. For example, where a client or a customer has received an invoice for goods and services but this has not yet been paid.
