Assignment of Receivables Agreement

Assignment of receivables agreement – a professional template in Word format

By an assignment of receivables (cesija) agreement the existing creditor (the assignor, cedent) assigns its receivable to a new creditor (the assignee, cesionar), while the debtor (cesus) remains the same. In practice it is used when a company “sells” an unpaid invoice, when it secures its own debt with a receivable, or when it settles an obligation towards its own creditor with that receivable instead of paying in money.

Assignment of receivables is governed by the Obligations Act (Zakon o obveznim odnosima). The debtor’s consent is not required for a valid assignment, but notifying the debtor is essential in practice – until the debtor has been notified, payment to the old creditor validly discharges the debt. The template therefore contains a separate article on the notification and on how to deal with money the assignor receives after the assignment.

Key features

• Professional template – 7 articles drawn up in line with the provisions of the Obligations Act (Zakon o obveznim odnosima) on the assignment of receivables.
• Practical reliability – covers identification of the receivable, ancillary rights, the existence and the collectability of the receivable, notification of the debtor and handover of the supporting documents.
• Easy customisation – four ready-made variants of assignment in Article 3, of which you keep only the one that matches your transaction.
• Digital delivery – the DOCX file with instructions arrives by e-mail immediately after purchase, ready for printing and signing.

What the template includes

• Details of the assignor, the assignee and the debtor (name, OIB (personal identification number), address or registered office, representative)
• Article 1 – identification of the receivable with the principal amount, the legal basis (invoice or contract with a date), the maturity date and an option for default interest
• Article 2 – assignment of the receivable together with ancillary rights and the moment of transfer to the assignee
• Article 3 – four options: ordinary assignment for consideration, assignment by way of security, assignment for the purpose of performance and assignment in lieu of performance
• Article 4 – the assignor’s warranty that the receivable exists (veritet) and a provision that the assignor is not liable for its collectability, with an option to agree liability for collectability (bonitet)
• Article 5 – notification of the debtor, the deadline for sending it and the rule on payment validly made to the assignor before the notification
• Article 6 – a list of the documents evidencing the receivable and the deadline for handing them over to the assignee
• Instructions for completion explaining the difference between the four types of assignment and how to check for a contractual ban on assignment

We have explained when each type of assignment is used and why notifying the debtor matters so much in our guide ugovor o cesiji (assignment of receivables). If it is the debtor that changes rather than the creditor, the right document is the assumption of debt agreement template, and for closing a chain of debts between three parties there is the delegation of payment agreement.