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 Kentucky Notice of Assignment is a legal document used to officially notify another party of the assignment of a right, claim, or interest in a particular asset or contract. This assignment can occur in various contexts such as personal property, real estate, or contractual agreements. In Kentucky, there are several types of Notice of Assignment that may be relevant in different situations. They include: 1. Notice of Assignment of Mortgage: This type of notice is used when a mortgage lender assigns or transfers their rights, title, and interest in a mortgage to another party such as a new lender or investor. 2. Notice of Assignment of Lease: In the case of a lease agreement, this notice informs the tenant that the landlord has transferred their rights, obligations, and interests in the lease to a new owner or management entity. 3. Notice of Assignment of Accounts Receivable: This notice is used when a business or individual sells or assigns their accounts receivable to a third party, often a factoring company, in exchange for immediate cash flow instead of waiting for the receivables to be collected. 4. Notice of Assignment of Contract: This type of notice is applicable when one party assigns their rights and obligations under a contract to another party, which allows the assignee to step into the assignor's shoes and assume the rights and benefits of the original contract. 5. Notice of Assignment of Judgment: In the event of a court judgment, this notice informs the debtor that their judgment has been assigned to another party, typically a debt buyer, who will now collect the debt on behalf of the original creditor. Regardless of the specific type, a Kentucky Notice of Assignment serves as an important legal notification that allows all relevant parties to be aware of the transfer of rights and responsibilities. It ensures transparency and safeguards the interests of the parties involved in the assignment.
