Assignment of credits

1. ASSIGNMENT

Perfection of assignment

⦁ An assignment of credits and other incorporeal rights shall be perfected in accordance with the provisions of Article 1475. (Article 1624, Ibid.)

Cross-referenced article/sThe contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. (Art. 1475, Ibid.)From that moment, the parties may reciprocally demand performance, subject to the provisions of the law governing the form of contracts. (Paragraph 2, Art. 1475, Ibid.)

⦁ Accessory rights included. The assignment of a credit includes all the accessory rights, such as a guaranty, mortgage, pledge or preference. (Article 1627, Ibid.)

To bind third parties

⦁ Public instrument for non-real properties; Recorded in Registry for real properties. An assignment of a credit, right or action shall produce no effect as against third person, unless it appears in a public instrument, or the instrument is recorded in the Registry of Property in case the assignment involves real property. (Article 1625, Ibid.)

2. DEBTOR IN GOOD FAITH

⦁ The debtor who, before having knowledge of the assignment, pays his creditor shall be released from the obligation. (Article 1626, Ibid.)

3. SELLER

In good faith

⦁ The seller in good faith shall be responsible for the existence and legality of the credit at the time of the sale, unless it should have been sold as doubtful; but not for the solvency of the d...

 



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