The Factoring Regulation Act

Rights and obligations of parties to contract for assignment of receivables

Liability of debtor

Assignor to be trustee of assignee

Liability of debtor in case of an assignor being mircro or small enterprises

Principle of debtor protection

Defences and right of set off of debtor

Modification of original contract

Breach of contract


RIGHTS AND OBLIGATIONS OF PARTIES TO CONTRACT FOR ASSIGMENT OF RECEIVABLES


Notwithstanding anything to the contrary contained in any
other law for the time being in force, where a debtor makes any payment to an assignor which represents
payment due on an assigned receivable, such payment shall be deemed to be for the benefit of the
assignee, and the assignor shall be deemed to have received the amount of such payment as a trustee of
the assignee and the assignor shall make payment of such amount to the assignee.


LAWGIST

# 13 Assignor to be trustee of assignee