Assignment Of Receivables Under The New Czech Civil Code

The New Czech Civil Code has introduced several changes to the assignment of receivables and new instruments for such purposes.

Assignment of receivable

The New Civil Code (Act No. 89/2012 Coll., civil code, as amended; the NCC), unlike the previous one (Act No. 40/1964 Coll., civil code, as amended; the CC), does not require an agreement on the assignment of receivables to be made in writing. It can be made in oral form or implicitly. However, for legal certainty and for better proof of assignment, the written form is recommended. The assignment agreement must also identify the transferred receivables in a sufficiently specific manner.

Rights attached to the receivable

By assignment of debt, the assignee acquires also appurtenances to the debt (eg, interest, default interest and costs of enforcement of the debt) and other rights connected to the debt (including security).