Sovereign Order n° 9.819 of March 9th, 2023 relating to the assignment of professional claims instituted by Law n° 1.529 of 29 July 2022 on various economic and legal provisions (the “Law“), was published on March 17th, 2023 in the “Journal de Monaco” (the “Order“).
Article 69 of the Constitution provides that Laws and Sovereign Orders may only be enforced against third parties from the day after their publication in the “Journal de Monaco“, , the Order hence entered into force on March 18th, 2023. This note refers to the Order which implements the Law.
In order to provide some context, we invite you to read our note and comments on “Law n° 1.529 on various economic and legal provisions“, available in the “News” section of our website.
The Order states the mandatory wording that must be included in the debt assignment agreement, as referred to under Article 17(3) of the Law, and the conditions of notification of the assignment to the debtor of the assigned claim as referred to under Article 21(2) of the Law.
- With regard to the mandatory wording that must be included in the debt assignment agreement :
Article 1 of the Order provides that :
“ Pursuant to the third paragraph of Article 17 of Law n° 1.529 of 29 July 2022, referred to above, the form must include the following mandatory information:
1°) The words “deed of assignment of professional claims”;
2°) The reference the deed is subject to the provisions of Articles 17 to 23 of Law n° 1.529 of 29 July 2022, referred to above;
3°) The name or corporate name and address of the beneficiary credit institution or finance company mentioned in the first paragraph of Article 17 of Law n° 1.529 of 29 July 2022, referred to above;
4°) The designation or individualization of the assigned receivables or the elements likely to effect such designation or individualization, in particular by indicating the name and address of the debtor, the place of payment, the amount of the receivables or their valuation, and, where applicable, their maturity.
However, where the designation or individualization of the assigned claims is carried out by a computerized process that allows them to be identified, the statement may simply indicate, in addition to the information indicated in 1°), 2°) and 3°), the means by which they are identified, their number and their total amount.”
- With regard to the conditions of notification of the assignment to the debtor of the assigned claim :
Article 2 of the Order specifies that the notification of the assignment to the debtor may be made by any means which ensures evidence of the debtor’s knowledge of the notification.
Such evidence shall be established in accordance with the rules applicable to the status of the debtor of the assigned claims.
However, the same article defines the mandatory wording that must be included in the notification to the debtor of an assigned claim :
“ Under the conditions provided for in Articles 17 to 23 of Law n° 1.529 of 29 July 2022 containing various economic and legal provisions, (name of the assignor, in particular, its name or company name and address) has assigned to us the claim(s) under which you are indebted to it.
In accordance with the provisions of Article 21 of the said law, we request you to cease, with effect from the present notification, all payments in respect of this/these claim(s) to (name of assignor).
Accordingly, payment of your debt to (specify the method of payment) should be made to the order of (specify the person to whom payment should be made).”
Our team remains at your disposal to assist you and to answer your questions on the subject.