A valid assignment takes effect the moment it is made regardless of whether notice of the assignment is given to the other party to the contract. If the obligor 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.
Assignment of Right to Payments To: (Name of Recipient) (Address of Recipient) You are hereby notified that on (date), (Name of Assignor), of (street address, city, state, zip code), Assignor, assigned to me, as Assignee, the right of Assignor to receive payments due under an Agreement with you dated (date), for the sale of (quantity or units) of (type of goods) for $____________________. I am enclosing a copy
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