What is an assignment?

An assignment is a change in the debt relationship on the part of the creditor. An assignment is also referred to as an assignment. It is the exchange of the creditor without changing the debtor and also without changing the content of the assignment. An assignment always has an asset and is significant both as a means of payment and as a hedge. The transferring creditor is also referred to as the assignor. If he transfers the assignment, he loses all claims to it. The creditor received, also known as the assignee, acquires all claims. This also includes all rights and ancillary rights belonging to this assignment. The legal definition of the term assignment under civil law can be found in §398 of the Civil Code.

Admissibility and effect

All receivables are assignable provided they are sufficiently specified. Receivables are not transferable,
– if the assignment is excluded by an agreement with the debtor
– if the assignment cannot take place without a change in the content of the claim
– if the claim is unseizable
– if the assignment is prohibited by law.
With the assignment, the claim with all its security and preferential rights is transferred to the new creditor. Even after the assignment, the debtor is entitled to all objections against the new creditor which he had against the old creditor.
Assignments can generally be divided into two forms.

Silent and open assignment

The assignment may be made in a silent or open form. The silent assignment takes place without informing the debtor, so that the old creditor can continue to demand payments from the debtor. The assignee is then entitled to demand the benefits received from the old creditor. As a rule, this is done by means of a direct debit authorization.
The open Assignment goes hand in hand with informing the debtor. Thus, in the case of open assignment, the new creditor can transfer the benefit directly to the new creditor.

Protection provisions for the debtor

An assignment contains some protective provisions for the debtor. So this
– with a claim, which he has against the old creditor, also against the new creditor.
– set off payments made to the old creditor in ignorance of the assignment against payments made to the new creditor.
– he must accept the assignment even if it has not taken place or has not taken place in an effective manner but only if the assignment has been notified to the debtor
The creditor may demand proof of the assignment in the knowledge of the new creditor. If this does not occur, the debtor is entitled to refuse performance. Likewise, notices of termination of the claim or reminders for the claim by the new creditor are invalid. However, the debtor must reject them immediately. If the old creditor has notified the debtor of the assignment, it is not necessary to produce a document.

assignment for security

In most cases they are used to secure bank loans.
Such assignments are made by way of security and are colloquially referred to as assignment by way of security. The lenders are therefore usually a bank or credit institution. They conclude a security agreement with the borrower, which is a contractual relationship under the law of obligations. The assignment by way of security thus includes the assignment of a claim to the lender for his security. The borrower acts as the transferred creditor while the bank or credit institution is the received creditor.