Editing Assignment (law) (section)

==Liabilities and duties==
Unless the contractual agreement states otherwise, the assignee typically does not receive more rights than the assignor, and the assignor may remain liable to the original counterparty for the performance of the contract. The assignor often delegates duties in addition to rights to the assignee, but the assignor may remain ultimately responsible.

However, in the United States, there are various laws which limit the liability of the assignee, often to facilitate [[credit]], as assignees are typically lenders.<ref name=AssigneeLiability>[http://arnstein.com/attorneypublications/Ropiquet/Assignee.Liability.-.Through.the.Minefield.pdf Assignee Liability: Through the Minefield]. Arnstein & Lehr LLP.</ref> Notable examples include a provision in the [[Truth in Lending Act]]<ref>See 15 U.S.C. 1641(a).</ref> and provisions in the [[Consumer Leasing Act]] and the [[Home Ownership Equity Protection Act]].<ref name=AssigneeLiability/> The '''Assignment of Claims Act of 1940''' <ref>[https://www.govinfo.gov/content/pkg/STATUTE-54/pdf/STATUTE-54-Pg1029-2.pdf#page=1 Chapter 779: An Act to assist in the national-defense program by amending sections 3477 and 3737 of the Revised Statutes to permit the assignment of claims under public contracts], 8 October 1940, accessed 26 May 2024</ref> was passed to provide legal protection for financial institutions funding wartime [[defense contract]]s.<ref>Law Review Editors, [https://paperity.org/p/81661103/the-assignment-of-claims-act-of-1940-assignee-v-surety The Assignment of Claims Act of 1940: Assignee v. Surety], ''[[University of Chicago Law Review]]'', published 9 January 1952, accessed 26 May 2024</ref>

In other cases, the contract may be a [[negotiable instrument]] in which the person receiving the instrument may become a [[holder in due course]], which is similar to an assignee except that issues, such as lack of performance, by the assignor may not be a valid defense for the obligor.<ref name=PSTCC_HDC>[http://www.pstcc.edu/departments/lat/classes/2300/notes/chap23.htm Commercial Paper: Holder in Due Course & Defenses] {{webarchive|url=https://web.archive.org/web/20121128024402/http://www.pstcc.edu/departments/lat/classes/2300/notes/chap23.htm |date=2012-11-28}}.</ref> As a response, the United States [[Federal Trade Commission]] promulgated Rule 433, formally known as the "Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses", which "effectively abolished the [holder in due course] doctrine in consumer credit transactions".<ref name=PSTCC_HDC/> In 2012, the commission reaffirmed the regulation.<ref>[http://ftc.gov/opa/2012/05/holderrule.shtm FTC Opinion Letter Affirms Consumers' Rights under the Holder Rule] {{Webarchive|url=https://web.archive.org/web/20121106035616/http://ftc.gov/opa/2012/05/holderrule.shtm |date=2012-11-06 }}. FTC.</ref>