New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    As per the Factoring Regulation Act what are the

    obligations of the debtor upon receiving a notice of assignment as referred to in section 8?
    A The debtor must provide any information requested by the assignee about the receivable but is not obligated to make any payment to the assignee Correct Answer Incorrect Answer
    B The debtor must make the payment due on an assigned receivable to the assignee but is not obligated to provide any information to the assignee Correct Answer Incorrect Answer
    C The debtor must provide any information requested by the assignee about the receivable and must make the payment due on an assigned receivable to the assignee Correct Answer Incorrect Answer
    D The debtor is not required to take any action upon receiving a notice of assignment Correct Answer Incorrect Answer
    E The debtor must only inform the assignee about the deposits or payments made to the assignor Correct Answer Incorrect Answer

    Solution

    Section 12.   Liability of debtor: Where a notice of assignment as referred to in section 8 is served, the debtor shall: (a) intimate the assignee the details of the deposits or advance or payment on account made to the assignor before the receipt of notice of assignment and also provide any other information to the assignee relating to the receivable as and when called upon by the assignee to do so; (b) not be entitled to a valid discharge of his liability in respect of assigned receivables, unless he makes the payment due on an assigned receivables to the assignee.

    Practice Next