[{"data":1,"prerenderedAt":527},["ShallowReactive",2],{"document-assignment-of-money-due-D387":3},{"document":4,"label":24,"preview":11,"thumb":25,"thumb600":26,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":27,"breadcrumb":31,"related":39,"customDescModule":184,"customdescription":6,"mdFm":185,"mdProseHtml":526},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":23},"ASSIGNMENT OF MONEY DUE For good and valuable consideration, the undersigned hereby assigns, transfers and delivers to [NAME] (the \"Assignee\"), all sums due or which shall become due and owing to the undersigned from [YOUR COMPANY NAME] (the \"Assignor\") by reason of a certain agreement dated [DATE] by and between the undersigned. Signed under seal this [DAY] day of [MONTH], [YEAR]. Witness Assignor Notice of the above assignment is hereby acknowledged on [MONTH], [YEAR]. Obligor ",null,"Assignment of Money Due","1",30,"doc","https://templates.business-in-a-box.com/imgs/1000px/assignment-of-money-due-D387.png","https://templates.business-in-a-box.com/imgs/250px/387.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#387.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":17,"url":18},"assignment money due","Assignment of Money Due Template","https://templates.business-in-a-box.com/imgs/400px/387.png","https://templates.business-in-a-box.com/imgs/600px/387.png",[28,16,19,22],{"label":29,"url":30},"Templates","/templates/",[32,33,36],{"label":29,"url":30},{"label":34,"url":35},"Legal Agreements","/templates/business-legal-agreements/",{"label":37,"url":38},"Transfers Terminations & Releases","/templates/transfers-terminations-and-releases/",[40,44,48,52,56,60,64,68,72,76,80,84,88,103,122,138,155,170],{"label":41,"url":42,"thumb":43,"extension":10},"Money Back Guarantee","/template/money-back-guarantee-D13025","https://templates.business-in-a-box.com/imgs/250px/13025.png",{"label":45,"url":46,"thumb":47,"extension":10},"Anti Money Laundering Policy","/template/anti-money-laundering-policy-D13481","https://templates.business-in-a-box.com/imgs/250px/13481.png",{"label":49,"url":50,"thumb":51,"extension":10},"Due Diligence Requisition List","/template/due-diligence-requisition-list-D469","https://templates.business-in-a-box.com/imgs/250px/469.png",{"label":53,"url":54,"thumb":55,"extension":10},"Assignment of Shares","/template/assignment-of-shares-D324","https://templates.business-in-a-box.com/imgs/250px/324.png",{"label":57,"url":58,"thumb":59,"extension":10},"Assignment","/template/assignment-D942","https://templates.business-in-a-box.com/imgs/250px/942.png",{"label":61,"url":62,"thumb":63,"extension":10},"By-Law Approving Borrowing of Money","/template/by-law-approving-borrowing-of-money-D79","https://templates.business-in-a-box.com/imgs/250px/79.png",{"label":65,"url":66,"thumb":67,"extension":10},"Due Diligence Report","/template/due-diligence-report-D13515","https://templates.business-in-a-box.com/imgs/250px/13515.png",{"label":69,"url":70,"thumb":71,"extension":10},"Absolute Assignment and Transfer of Loans","/template/absolute-assignment-and-transfer-of-loans-D413","https://templates.business-in-a-box.com/imgs/250px/413.png",{"label":73,"url":74,"thumb":75,"extension":10},"Assignment and Transfer of Stock Certificate","/template/assignment-and-transfer-of-stock-certificate-D323","https://templates.business-in-a-box.com/imgs/250px/323.png",{"label":77,"url":78,"thumb":79,"extension":10},"Assignment Agreement","/template/assignment-agreement-D12542","https://templates.business-in-a-box.com/imgs/250px/12542.png",{"label":81,"url":82,"thumb":83,"extension":10},"Assignment for Deed","/template/assignment-for-deed-D974","https://templates.business-in-a-box.com/imgs/250px/974.png",{"label":85,"url":86,"thumb":87,"extension":10},"Assignment of Copyright","/template/assignment-of-copyright-D755","https://templates.business-in-a-box.com/imgs/250px/755.png",{"description":89,"descriptionCustom":6,"label":90,"pages":91,"size":92,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":98,"keywords":97,"url":102},"NOVATION AGREEMENT This Novation Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR FULL NAME] (the \"First Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [THIRD PARTY NAME] (the \"Third Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] WHEREAS the First Party and the Second Party have come into agreement to extinguish the original contract and supplement it with a new one. WHEREAS the Third Party takes up the rights and obligations of the First or Second Party, as defined in the new contract. WHEREAS the First and Second Party agree and consent to the Third Party assuming all liability and obligations in respect of the Contract from the Effective Date (as defined below). NOW THEREFORE, in consideration of the premises and of the mutual agreements contained in this Agreement, the Parties hereto agree as follows: NOVATION As of the Effective Date, the First or Second Party transfers to the Third Party all of its rights, benefits and obligations under the Contract, including: [LIST RIGHTS, BENEFITS AND OBLIGATIONS BEING TRANSFERRED TO THIRD PARTY] The Third Party agrees to perform and comply with the Contract and to be bound by its terms in every way as if the Third Party were the original Party to the Contract in place of the First or Second Party. The Third Party accepts their liability under the Contract in place of the liability of the First or Second Party. RELEASE OF OBLIGATIONS AND LIABILITIES From the Effective Date, the First Party and the Second Party release and discharge each other from all future obligations to the other under this Agreement, including: [LIST RIGHTS, BENEFITS AND OBLIGATIONS BEING RELEASED] Nothing in this Agreement shall affect or prejudice any claim or demand that the First Party may have against the Second Party or the Second Party against the First Party with respect to matters occurring prior to the Effective Date. PAYMENTS FALLING DUE The First Party shall pay the Second Party any sums under the Contract falling due for payment before the Effective Date, in accordance with the payment terms set out in the Contract. For the avoidance of doubt, the due date in respect of any payment referred to in clauses 3.1 shall be determined in accordance with the terms of the Contract","Novation Agreement","4",513,"https://templates.business-in-a-box.com/imgs/1000px/novation-agreement-D12890.png","https://templates.business-in-a-box.com/imgs/250px/12890.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12890.xml",{"title":97,"description":6},"novation agreement",[99,101],{"label":34,"url":100},"business-legal-agreements",{"label":34,"url":100},"/template/novation-agreement-D12890",{"description":104,"descriptionCustom":6,"label":105,"pages":106,"size":107,"extension":10,"preview":108,"thumb":109,"svgFrame":110,"seoMetadata":111,"parents":112,"keywords":120,"url":121},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[113,115,117],{"label":17,"url":114},"finance-accounting",{"label":20,"url":116},"business-loan",{"label":118,"url":119},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":123,"descriptionCustom":6,"label":124,"pages":91,"size":92,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":130,"keywords":129,"url":137},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":129,"description":6},"secured lumpsum promissory note agreement",[131,134],{"label":132,"url":133},"Business Plan Kit","business-plan-kit",{"label":135,"url":136},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",{"description":139,"descriptionCustom":6,"label":140,"pages":8,"size":141,"extension":10,"preview":142,"thumb":143,"svgFrame":144,"seoMetadata":145,"parents":146,"keywords":153,"url":154},"BILL OF SALE This Bill of Sale (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Seller\") , a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BUYER NAME] (the \"Buyer\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] For good and valuable consideration, the Seller hereby sells and transfers possession of the following goods in their present condition and location to the Buyer, and its successors and assigns forever, the following described goods [DETAILED LIST OF GOODS]. Seller warrants and represents that he/she has good title to said property, full authority to sell and transfer same and that said goods and chattels are being sold free and clear of all liens, encumbrances, liabilities and adverse claims, of every nature and description.","Bill of Sale",29,"https://templates.business-in-a-box.com/imgs/1000px/bill-of-sale-D1229.png","https://templates.business-in-a-box.com/imgs/250px/1229.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1229.xml",{"title":6,"description":6},[147,150],{"label":148,"url":149},"Sales & Marketing","sales-marketing",{"label":151,"url":152},"Marketing & Sales Contracts","marketing-sales-contracts","bill sale","/template/bill-of-sale-D1229",{"description":156,"descriptionCustom":6,"label":157,"pages":8,"size":92,"extension":10,"preview":158,"thumb":159,"svgFrame":160,"seoMetadata":161,"parents":163,"keywords":168,"url":169},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: demand for extension of payment date Dear [Contact name], This will acknowledge our telephone conversation of this date. As was stated in our letter dated [Date], we should be receiving our financing by [Date].","Demand for Extension of Payment Date","https://templates.business-in-a-box.com/imgs/1000px/demand-for-extension-of-payment-date-D444.png","https://templates.business-in-a-box.com/imgs/250px/444.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#444.xml",{"title":162,"description":6},"demand for extension of payment date",[164,165],{"label":17,"url":114},{"label":166,"url":167},"Administration","business-administration","demand for extension payment date","/template/demand-for-extension-of-payment-date-D444",{"description":171,"descriptionCustom":6,"label":172,"pages":173,"size":92,"extension":10,"preview":174,"thumb":175,"svgFrame":176,"seoMetadata":177,"parents":179,"keywords":178,"url":183},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":178,"description":6},"loan agreement",[180,181,182],{"label":17,"url":114},{"label":20,"url":116},{"label":20,"url":116},"/template/loan-agreement-D417",false,{"seo":186,"reviewer":199,"legal_disclaimer":203,"quick_facts":204,"at_a_glance":206,"personas":210,"variants":235,"glossary":262,"clauses":299,"how_to_fill":344,"common_mistakes":385,"faqs":410,"industries":438,"comparisons":455,"diy_vs_lawyer":469,"jurisdictions":482,"related_template_ids_curated":503,"schema":513,"classification":514},{"meta_title":187,"meta_description":188,"primary_keyword":189,"secondary_keywords":190},"Assignment Of Money Due Template (Free Word)","Free assignment of money due template to legally transfer a debt or payment right to a third party. Download in Word, edit online, or export as PDF. Free Word and PDF download.","assignment of money due template",[191,192,193,194,195,196,197,198],"assignment of money due","debt assignment agreement","assignment of receivables template","assignment of payment rights","assignment of money due form","debt transfer agreement template","assignment agreement template word","accounts receivable assignment",{"name":200,"credential":201,"reviewed_date":202},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":205,"legal_review_recommended":203,"signature_required":203,"notarization_required":184},"medium",{"what_it_is":207,"when_you_need_it":208,"whats_inside":209},"An Assignment of Money Due is a legally binding document through which one party (the Assignor) transfers their right to receive a specific debt or payment from a third party (the Debtor) to another party (the Assignee). This free Word download gives you a professionally structured template you can edit online and export as PDF — covering the full transfer of payment rights, notice obligations, and representations in a single document.\n","Use it when a business or individual wants to sell, pledge, or transfer their right to collect a specific outstanding payment — for example, selling an account receivable to a factoring company, satisfying a debt obligation by redirecting what a third party owes you, or transferring settlement proceeds to a creditor.\n","Identification of all three parties (Assignor, Assignee, and Debtor), a precise description of the debt being assigned, consideration paid for the assignment, representations and warranties, notice-to-debtor requirements, and governing law. The document creates an enforceable transfer of payment rights from the moment both parties execute it.\n",[211,215,219,223,227,231],{"title":212,"use_case":213,"icon_asset_id":214},"Small business owners","Selling outstanding invoices to a factoring company to unlock immediate cash","persona-small-business-owner",{"title":216,"use_case":217,"icon_asset_id":218},"Creditors and lenders","Transferring a debtor's outstanding balance to a collection agency or debt buyer","persona-creditor",{"title":220,"use_case":221,"icon_asset_id":222},"Freelancers and consultants","Redirecting an unpaid client invoice to satisfy a personal debt obligation","persona-freelancer",{"title":224,"use_case":225,"icon_asset_id":226},"Finance and accounting managers","Formalizing the transfer of accounts receivable as part of a financing arrangement","persona-finance-manager",{"title":228,"use_case":229,"icon_asset_id":230},"Attorneys and legal professionals","Documenting an assignment of settlement or judgment proceeds on behalf of a client","persona-attorney",{"title":232,"use_case":233,"icon_asset_id":234},"Business acquisition teams","Transferring outstanding receivables from a sold business unit to the buyer","persona-operations-director",[236,240,244,247,251,255,258],{"situation":237,"recommended_template":238,"slug":239},"Selling a portfolio of invoices to a factoring company on a recurring basis","Invoice Factoring Agreement","invoice-D12538",{"situation":241,"recommended_template":242,"slug":243},"Transferring all accounts receivable as part of a business sale","Bill of Sale (Business Assets)","bill-of-sale-D1229",{"situation":245,"recommended_template":77,"slug":246},"Assigning rights under a broader contract, not just a payment right","assignment-agreement-D12542",{"situation":248,"recommended_template":249,"slug":250},"Directing a debtor to pay a third party on a one-time informal basis","Payment Direction Letter","letter-of-direction-payment-of-acquisition-price-D5196",{"situation":252,"recommended_template":253,"slug":254},"Formally acknowledging the debtor's consent to the assignment","Acknowledgment of Assignment","acknowledgment-of-notification-of-lease-transfer-D1130",{"situation":256,"recommended_template":90,"slug":257},"Assigning rights and delegating obligations under a contract simultaneously","novation-agreement-D12890",{"situation":259,"recommended_template":260,"slug":261},"Securing a loan using outstanding receivables as collateral without transferring ownership","Accounts Receivable Pledge Agreement","repurchase-of-accounts-receivable-agreement-D290",[263,266,269,272,275,278,281,284,287,290,293,296],{"term":264,"definition":265},"Assignor","The party who currently holds the right to receive a payment and transfers that right to the Assignee.",{"term":267,"definition":268},"Assignee","The party who receives the transferred right to collect the debt or payment from the Debtor.",{"term":270,"definition":271},"Debtor","The third party who owes the original payment and is obligated to pay the Assignee after notice of the assignment.",{"term":273,"definition":274},"Consideration","The value exchanged for the assignment — typically a cash payment, debt forgiveness, or another form of agreed value.",{"term":276,"definition":277},"Notice of Assignment","A formal written notification sent to the Debtor informing them that the payment right has been transferred and directing future payments to the Assignee.",{"term":279,"definition":280},"Accounts Receivable","Money owed to a business by its customers for goods or services already delivered — a common subject of assignment transactions.",{"term":282,"definition":283},"Absolute Assignment","A full and unconditional transfer of the payment right to the Assignee, with no reversionary interest retained by the Assignor.",{"term":285,"definition":286},"Conditional Assignment","A transfer of payment rights that takes effect only when a specified event occurs, such as the Assignor's default on a loan.",{"term":288,"definition":289},"Non-Assignment Clause","A provision in the original contract between the Assignor and Debtor that prohibits or restricts transfer of the payment right to a third party.",{"term":291,"definition":292},"Recourse vs. Non-Recourse Assignment","In a recourse assignment, the Assignor remains liable if the Debtor fails to pay; in a non-recourse assignment, the Assignee bears the risk of non-payment.",{"term":294,"definition":295},"Perfection","The legal steps required — such as filing a UCC-1 financing statement in the US — to establish the Assignee's priority claim over the assigned receivable against other creditors.",{"term":297,"definition":298},"Chose in Action","A legal term for an intangible personal property right that can be enforced through a legal action, such as the right to collect a debt — the core subject matter of an assignment of money due.",[300,305,310,314,319,324,329,334,339],{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Parties identification","Names and identifies the Assignor, Assignee, and Debtor with their full legal names, addresses, and entity types, and states the date of the agreement.","This Assignment of Money Due ('Agreement') is entered into as of [DATE] by and between [ASSIGNOR FULL LEGAL NAME], a [STATE] [ENTITY TYPE] ('Assignor'), and [ASSIGNEE FULL LEGAL NAME], a [STATE] [ENTITY TYPE] ('Assignee'). The party who owes the assigned amount is [DEBTOR FULL LEGAL NAME] ('Debtor').","Omitting the Debtor's legal name and address. Without this, the notice of assignment cannot be properly served, and the Debtor may continue paying the Assignor, potentially defeating the purpose of the transfer.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Description of the assigned debt","Precisely identifies the specific debt or payment right being assigned — referencing the underlying contract, invoice, or obligation, the original amount, and any accrued interest.","Assignor hereby assigns to Assignee all right, title, and interest in and to the sum of $[AMOUNT] currently owed by Debtor to Assignor pursuant to [Invoice No. / Contract dated / Agreement titled] [REFERENCE], dated [DATE], including any accrued interest at [RATE]% per annum.","Using a vague description such as 'all amounts owed' without referencing a specific invoice or contract. Ambiguity about which debt is assigned creates disputes about scope and can render the assignment unenforceable.",{"name":273,"plain_english":311,"sample_language":312,"common_mistake":313},"States what the Assignee pays or provides in exchange for receiving the payment right — ensuring the contract is supported by valid consideration under contract law.","In consideration of the payment of $[PURCHASE PRICE] from Assignee to Assignor, the receipt and sufficiency of which is hereby acknowledged, Assignor agrees to the assignment set out herein.","Writing 'for good and valuable consideration' without specifying the actual amount. Courts in several jurisdictions scrutinize assignments with no stated consideration, particularly in insolvency or fraudulent-transfer disputes.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Representations and warranties of the Assignor","The Assignor confirms that the debt is valid and outstanding, that they have the right to assign it, that it has not been previously assigned or pledged, and that no defenses or counterclaims are known to exist.","Assignor represents and warrants that: (a) the assigned debt is valid, subsisting, and unpaid in the amount stated; (b) Assignor has full authority to assign the debt; (c) the debt has not been previously assigned, pledged, or encumbered; and (d) Assignor is not aware of any defense, counterclaim, or offset the Debtor may assert.","Omitting a warranty that the debt has not been previously pledged as loan collateral. An assignment of a receivable already securing a bank loan can expose the Assignee to losing the right to collect if the bank's security interest is perfected.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Notice to Debtor","Requires the Assignor to deliver a written notice of assignment to the Debtor within a specified timeframe, directing future payments to the Assignee, and confirming that payment to the Assignor after notice will not discharge the Debtor's obligation.","Assignor shall deliver written notice of this assignment to Debtor within [NUMBER] business days of execution, in the form attached as Exhibit A. Following receipt of such notice, Debtor shall make all payments directly to Assignee. Payment made to Assignor after notice is delivered shall not constitute valid discharge of the Debtor's obligation.","Failing to specify a deadline for delivering the notice. Without a deadline, the Assignor may delay notification indefinitely, allowing the Debtor to continue paying the Assignor — funds the Assignor may no longer have by the time a dispute arises.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Recourse or non-recourse election","Explicitly states whether the Assignor guarantees payment if the Debtor defaults (recourse) or whether the Assignee assumes all risk of non-collection (non-recourse).","This assignment is made [WITH / WITHOUT] recourse. [If with recourse: In the event Debtor fails to pay any assigned amount within [X] days of its due date, Assignor shall, upon written demand from Assignee, promptly pay such amount to Assignee.]","Leaving recourse versus non-recourse unaddressed. When the clause is silent, courts may imply recourse or non-recourse based on the jurisdiction's default rule — often the opposite of what the parties intended.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Assignor's obligation to cooperate","Requires the Assignor to take all reasonable steps to assist the Assignee in collecting the debt — including executing further documents, providing records, and supporting legal proceedings if the Debtor defaults.","Assignor agrees to cooperate fully with Assignee in enforcing collection of the assigned debt, including executing any further instruments, providing copies of invoices and correspondence, and joining as a party to any legal proceedings initiated by Assignee at Assignee's cost and request.","No cooperation clause at all. If the Debtor disputes the debt or refuses to pay, the Assignee may need the Assignor to produce records or testify — without a contractual obligation to cooperate, the Assignor has no incentive to assist after receiving their consideration.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing law and jurisdiction","Specifies which jurisdiction's law governs the interpretation and enforcement of the assignment, and identifies the courts where disputes will be resolved.","This Agreement shall be governed by and construed in accordance with the laws of the State of [STATE / PROVINCE / COUNTRY], without regard to its conflict of laws principles. Any dispute arising hereunder shall be resolved exclusively in the courts of [COUNTY / CITY], [STATE].","Choosing a governing law that differs from the jurisdiction where the Debtor is located. Some jurisdictions require the assignment to comply with local law to be enforceable against the Debtor, regardless of the governing-law clause between the Assignor and Assignee.",{"name":340,"plain_english":341,"sample_language":342,"common_mistake":343},"Entire agreement and amendment","Confirms that the written document is the complete agreement between Assignor and Assignee on the subject matter, and that modifications must be in writing and signed by both parties.","This Agreement constitutes the entire agreement between the parties with respect to the assignment of the debt described herein and supersedes all prior negotiations, representations, and agreements. No amendment shall be effective unless made in writing and signed by both parties.","Omitting this clause when the assignment was negotiated by email. Prior email exchanges can be introduced as contractual terms without an entire-agreement clause, creating ambiguity about the true scope of the Assignor's representations.",[345,350,355,360,365,370,375,380],{"step":346,"title":347,"description":348,"tip":349},1,"Identify all three parties with legal names","Enter the full registered legal name, address, and entity type for the Assignor, Assignee, and Debtor. Confirm the Debtor's current mailing address — this is where the notice of assignment must be sent.","Pull the Debtor's name directly from the original contract or invoice to ensure it matches exactly — a discrepancy can give the Debtor grounds to dispute the validity of the notice.",{"step":351,"title":352,"description":353,"tip":354},2,"Describe the assigned debt precisely","Reference the specific invoice number, contract date, or agreement title that created the debt. State the exact outstanding balance and any accrued interest rate. Attach a copy of the underlying document as an exhibit.","If multiple invoices are being assigned together, list each one in a numbered schedule attached to the agreement rather than describing them in the body — this keeps the main document clean and makes future disputes easier to resolve.",{"step":356,"title":357,"description":358,"tip":359},3,"State the consideration clearly","Enter the actual dollar amount the Assignee is paying for the right to collect the debt, or describe another form of consideration such as debt forgiveness. Avoid 'nominal' consideration of $1 for assignments of material value — it can attract fraudulent-transfer scrutiny.","If the assignment is being used to satisfy a separate obligation the Assignor owes the Assignee, describe that offset clearly as the consideration rather than leaving it implied.",{"step":361,"title":362,"description":363,"tip":364},4,"Complete the representations and warranties block","Confirm each warranty is accurate before signing: the debt is genuinely outstanding, it has not been pledged or previously assigned, and you are not aware of any disputes or setoffs the Debtor may raise.","Run a UCC lien search (US) or equivalent in your jurisdiction before executing — if the receivable is already collateral for a bank loan, you cannot validly assign it without the lender's consent.",{"step":366,"title":367,"description":368,"tip":369},5,"Set the notice deadline and prepare the notice document","Enter the number of business days within which notice must be delivered to the Debtor after execution — 5 business days is standard. Draft the notice letter (Exhibit A) at the same time you complete the agreement so it is ready to send immediately.","Send the notice by a trackable method — certified mail, courier, or email with read receipt — and retain proof of delivery. The date the Debtor receives notice is the date from which their obligation to pay the Assignee begins.",{"step":371,"title":372,"description":373,"tip":374},6,"Elect recourse or non-recourse and complete the applicable clause","Decide whether the Assignor will guarantee payment if the Debtor defaults. If recourse, specify the number of days after the due date before the Assignee can demand payment from the Assignor. If non-recourse, state it explicitly.","Non-recourse assignments typically command a lower purchase price because the Assignee bears the credit risk — price the consideration accordingly.",{"step":376,"title":377,"description":378,"tip":379},7,"Sign before delivering notice to the Debtor","Both the Assignor and Assignee must sign the agreement before the notice is delivered. The signed agreement is the foundation of the Assignee's right to collect — notice without an executed agreement behind it is legally ineffective.","Use a timestamped electronic signature so the execution date is independently verifiable if the Debtor later claims the notice was premature.",{"step":381,"title":382,"description":383,"tip":384},8,"Retain executed copies and file any required security interest","Both parties should retain a fully executed copy. In the US, if the assigned receivable is material and the Assignee wants priority over other creditors, file a UCC-1 financing statement in the Assignor's state of organization.","Set a calendar reminder for the UCC-1 continuation filing deadline — financing statements lapse after 5 years if not renewed, which could subordinate the Assignee's claim in an insolvency.",[386,390,394,398,402,406],{"mistake":387,"why_it_matters":388,"fix":389},"Assigning a receivable that is already pledged as loan collateral","If the Assignor's bank holds a perfected security interest in the receivable, the Assignee's claim is subordinate and may be wiped out in the Assignor's insolvency — even if the assignment was validly executed.","Conduct a UCC lien search (or equivalent in your jurisdiction) before signing. If a prior security interest exists, obtain written consent and a subordination or release from the secured lender before proceeding.",{"mistake":391,"why_it_matters":392,"fix":393},"Delivering notice to the Debtor before the agreement is fully signed","Notice sent before execution is legally premature — the Assignee has no enforceable right to the payment yet, and the Debtor can argue they had no valid obligation to redirect payment.","Always complete the signing process first. Use electronic signature tools that timestamp execution, then send the notice immediately after both signatures are confirmed.",{"mistake":395,"why_it_matters":396,"fix":397},"Using a vague debt description with no reference to source documents","A description like 'all amounts owed by Debtor to Assignor' creates scope disputes — the Debtor may claim the assignment covers more or less than was intended, or that a specific invoice was not included.","Reference every specific invoice number, contract date, and outstanding amount. Attach copies of the source documents as exhibits and reference them in the body of the agreement.",{"mistake":399,"why_it_matters":400,"fix":401},"Failing to address what happens if the Debtor raises a setoff or counterclaim","A Debtor who has a valid claim against the Assignor can typically assert it as a defense against the Assignee — reducing or eliminating the assigned amount the Assignee can collect.","Include a representation from the Assignor that no known offsets or counterclaims exist, and consider a recourse obligation requiring the Assignor to indemnify the Assignee if a setoff reduces the collected amount.",{"mistake":403,"why_it_matters":404,"fix":405},"Omitting the cooperation clause","If the Debtor disputes the debt, the Assignee may need the Assignor's records, testimony, or formal joinder in a lawsuit. Without a contractual duty to cooperate, the Assignor can refuse after pocketing the consideration.","Include an explicit cooperation clause requiring the Assignor to provide records, execute further documents, and support enforcement proceedings at the Assignee's reasonable request and cost.",{"mistake":407,"why_it_matters":408,"fix":409},"Not specifying recourse versus non-recourse","When the agreement is silent, courts in different jurisdictions apply different default rules — some imply recourse, others non-recourse — meaning one party will be bound by an outcome they did not anticipate.","State the election explicitly in the agreement: 'This assignment is made with recourse' or 'This assignment is made without recourse.' Never leave credit-risk allocation to implication.",[411,414,417,420,423,426,429,432,435],{"question":412,"answer":413},"What is an assignment of money due?","An assignment of money due is a legal document through which a creditor (the Assignor) transfers their right to collect a specific outstanding debt or payment to a third party (the Assignee). Once the assignment is executed and the Debtor is notified, the Debtor is legally obligated to pay the Assignee rather than the original creditor. It is commonly used in invoice factoring, debt sales, and situations where a creditor wants to satisfy their own obligations by redirecting what a third party owes them.\n",{"question":415,"answer":416},"What is the difference between an assignment of money due and a novation?","An assignment of money due transfers only the Assignor's right to receive payment — the underlying contract between the Assignor and Debtor remains in place, and the Assignor may still retain other obligations under it. A novation substitutes an entirely new party into the original contract, replacing the Assignor's rights and obligations completely with the new party's, and requires the Debtor's consent. Use an assignment when you want to transfer a payment right only; use a novation when you want to exit the original contract entirely.\n",{"question":418,"answer":419},"Does the Debtor need to consent to an assignment of money due?","Generally, no — in most jurisdictions a creditor can assign their right to receive payment without the Debtor's consent, provided the original contract does not contain a non-assignment clause. However, the Debtor must be formally notified of the assignment before they are obligated to pay the Assignee. If the underlying contract prohibits assignment, the Assignor should obtain written consent from the Debtor before proceeding, or the assignment may be unenforceable.\n",{"question":421,"answer":422},"What happens if the Debtor pays the Assignor after notice of assignment?","Once the Debtor receives proper written notice of the assignment, payment to the Assignor no longer discharges the Debtor's obligation to the Assignee in most jurisdictions. The Debtor can be required to pay again — this time to the Assignee — and would need to pursue recovery from the Assignor separately. For this reason, the notice clause and the Assignor's duty not to accept further payments should be clearly stated in the agreement.\n",{"question":424,"answer":425},"What is the difference between recourse and non-recourse assignment?","In a recourse assignment, the Assignor guarantees that the Debtor will pay — if the Debtor defaults, the Assignee can demand payment from the Assignor. In a non-recourse assignment, the Assignee accepts the credit risk and cannot pursue the Assignor if the Debtor fails to pay. Non-recourse assignments typically sell at a steeper discount because the buyer bears full collection risk. The agreement must explicitly state which type applies.\n",{"question":427,"answer":428},"Do I need to register or file an assignment of money due?","In many jurisdictions, an assignment is effective between the parties without registration. However, to establish priority over other creditors — particularly in an insolvency — additional steps may be required. In the United States, filing a UCC-1 financing statement in the Assignor's state of organization perfects the Assignee's security interest. In the UK, an equitable assignment is valid without registration, but a legal assignment requires written notice to the Debtor. Requirements vary by jurisdiction, so legal review is recommended for high-value assignments.\n",{"question":430,"answer":431},"Can an assignment of money due be challenged as a fraudulent transfer?","Yes. If the Assignor transferred the payment right for less than fair value while insolvent, or with intent to defraud creditors, a bankruptcy trustee or court can void the assignment. To reduce this risk, pay consideration that reflects the commercial value of the receivable, document the transaction clearly, and avoid assignments made shortly before financial distress. Courts look at timing, consideration adequacy, and the Assignor's financial condition at the time of transfer.\n",{"question":433,"answer":434},"What is a non-assignment clause and how does it affect this agreement?","A non-assignment clause in the original contract between the Assignor and Debtor prohibits the Assignor from transferring their rights without the Debtor's consent. If such a clause exists, assigning the receivable without consent may constitute a breach of the original contract and could render the assignment unenforceable against the Debtor. Always review the underlying contract before executing an assignment, and obtain written consent from the Debtor if a restriction applies.\n",{"question":436,"answer":437},"Is a lawyer required to prepare an assignment of money due?","For straightforward single-invoice assignments between domestic parties, a well-drafted template is typically sufficient. Legal review is recommended when the assigned amount is substantial, when the underlying contract contains complex terms or restrictions, when cross-border parties are involved, or when the Assignor is in financial difficulty and fraudulent transfer risk is present. A one-hour review by a commercial lawyer typically costs $200–$400 and is worthwhile for assignments above $25,000.\n",[439,443,447,451],{"industry":440,"icon_asset_id":441,"specifics":442},"Financial Services","industry-fintech","Banks and finance companies use assignment of money due documents to sell loan receivables, transfer debt portfolios, and formalize participation agreements between lenders.",{"industry":444,"icon_asset_id":445,"specifics":446},"Construction and Trades","industry-construction","Contractors assign progress-payment receivables to secure short-term financing, and subcontractors redirect payment claims to material suppliers to satisfy outstanding supply invoices.",{"industry":448,"icon_asset_id":449,"specifics":450},"Professional Services","industry-professional-services","Law firms, consultants, and agencies assign client invoices to factoring companies or use assignment to redirect settlement proceeds to satisfy obligations owed to third-party creditors.",{"industry":452,"icon_asset_id":453,"specifics":454},"Retail and Wholesale","industry-retail","Wholesalers and distributors assign trade receivables to improve cash flow, commonly through revolving factoring arrangements that require a standardized assignment document for each batch of invoices.",[456,459,462,465],{"vs":77,"vs_template_id":457,"summary":458},"assignment-agreement-D13573","A general assignment agreement transfers a broad set of contractual rights — not just payment rights — from one party to another, including performance obligations, licences, and other benefits. An assignment of money due is narrower in scope, covering only the right to receive a specific outstanding payment. Use the general assignment when you need to transfer an entire contractual position; use this document when the only thing changing hands is a debt.",{"vs":90,"vs_template_id":460,"summary":461},"novation-agreement-D13574","A novation substitutes a new party entirely into the original contract, extinguishing the original party's rights and obligations and replacing them with the new party's. An assignment of money due transfers only the collection right — the Assignor remains a party to the original contract. Novation requires the Debtor's consent; assignment generally does not. Use novation when you want a complete exit from the original agreement.",{"vs":105,"vs_template_id":463,"summary":464},"promissory-note-D386","A promissory note is a standalone instrument in which a borrower promises to repay a specific sum to a named payee — it creates the debt. An assignment of money due transfers an already-existing right to collect a debt from one party to another. A promissory note can itself be endorsed and transferred, but that process is governed by negotiable instruments law rather than a separate assignment document.",{"vs":466,"vs_template_id":467,"summary":468},"Debt Settlement Agreement","debt-settlement-agreement-D13586","A debt settlement agreement resolves a dispute between a creditor and debtor by agreeing on a reduced amount to settle and discharge the obligation. An assignment of money due does not modify or settle the debt — it transfers the right to collect the full original amount to a new party. Use a settlement agreement when you want to close out a debt at less than face value; use this document when you want to transfer who collects it.",{"use_template":470,"template_plus_review":474,"custom_drafted":478},{"best_for":471,"cost":472,"time":473},"Single-invoice assignments between domestic parties where the amount is under $25,000 and no prior liens or restrictions exist","Free","15–30 minutes",{"best_for":475,"cost":476,"time":477},"Assignments over $25,000, transactions involving non-assignment clauses in the underlying contract, or cross-border parties","$200–$500","1–2 days",{"best_for":479,"cost":480,"time":481},"Bulk receivable sales, assignments in connection with secured financing, insolvency-adjacent transactions, or regulated industry receivables","$800–$3,000+","3–7 days",[483,488,493,498],{"code":484,"name":485,"flag_asset_id":486,"note":487},"us","United States","flag-us","Article 9 of the Uniform Commercial Code governs the assignment of most accounts receivable in commercial transactions. To obtain priority over competing creditors, the Assignee should file a UCC-1 financing statement in the Assignor's state of organization. Non-assignment clauses in the underlying contract are generally enforceable, though UCC §9-406 overrides such clauses for assignments of accounts in commercial transactions. State law varies on formality requirements.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"ca","Canada","flag-ca","Assignment of debts is governed provincially — Ontario's Assignments and Preferences Act and similar statutes in other provinces apply. Written notice to the Debtor is required for the assignment to be effective against them. In Quebec, assignment of a claim (cession de créance) is governed by the Civil Code of Quebec, which requires that notice be given to the debtor for the assignment to become enforceable against third parties. Priority between competing assignees is generally determined by the order of notice delivery.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"uk","United Kingdom","flag-uk","Under the Law of Property Act 1925, a legal assignment of a debt must be absolute (not by way of charge), in writing, and formally notified in writing to the Debtor to be effective at law. An equitable assignment is valid without written notice but gives the Assignee fewer enforcement rights. The Assignee takes the receivable subject to any equities — including defences or setoffs — the Debtor had against the Assignor at the time of notice.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"eu","European Union","flag-eu","The EU's 2021 Regulation on the law applicable to the third-party effects of assignments of claims (effective 2023) harmonises which national law determines enforceability against third parties — generally the law of the Assignor's habitual residence. Individual member states retain their own formality and priority rules. In France, assignment of a business receivable (cession de créances professionnelles, or Dailly assignment) requires a special form and bank involvement. Germany's Abtretung is flexible but subject to non-assignment clauses in the underlying contract.",[246,257,504,505,243,506,507,508,509,510,511,512],"promissory-note-D434","secured-lumpsum-promissory-note-agreement-D13041","demand-for-extension-of-payment-date-D444","loan-agreement-D417","accounts-receivable-D308","general-release-and-settlement-agreement-D12554","letter-of-intent_acquisition-of-business-D5197","personal-guarantee-D405","purchase-order-D1411",{"emit_how_to":203,"emit_defined_term":203},{"primary_folder":100,"secondary_folder":515,"document_type":516,"industry":517,"business_stage":518,"tags":519,"confidence":525},"transfers-terminations-and-releases","agreement","general","all-stages",[520,521,522,523,524],"legal","contract","assignment","money-due","debt-transfer",0.95,"\u003Ch2>What is an Assignment of Money Due?\u003C/h2>\n\u003Cp>An \u003Cstrong>Assignment of Money Due\u003C/strong> is a legally binding document through which a creditor (the Assignor) formally transfers their right to collect a specific outstanding debt or payment to a third party (the Assignee). Once the document is executed and written notice is delivered to the person or business that owes the money (the Debtor), that Debtor is legally obligated to direct all payments to the Assignee rather than the original creditor. The assignment does not create a new debt — it changes who is entitled to collect an existing one, transferring both the right to receive payment and the standing to pursue legal remedies if the Debtor defaults.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written assignment, an oral or informal arrangement to redirect a payment has no legal force — the Debtor has no clear obligation to pay anyone other than the original creditor, and disputes over who is owed what become difficult and expensive to resolve. Businesses that assign receivables informally also risk having their right challenged in the Assignor's insolvency, because undocumented transfers are the first targets of fraudulent-transfer scrutiny. A properly executed Assignment of Money Due establishes the Assignee's priority claim, provides the Debtor with unambiguous payment instructions, and creates an enforceable paper trail that protects all three parties. For factoring arrangements, debt sales, or any transaction where cash flow depends on collecting a third party's payment, this document is the foundational instrument that makes the transfer legally effective and commercially secure.\u003C/p>\n",1781186013977]