Legal provisions on transfer of creditor's rights by trust companies

The Law on Transfer of Creditor's Rights of Trust Companies stipulates that the transfer of creditor's rights is a civil legal act in which the creditor transfers all or part of his rights in the contract to others. According to Article 546 of the Civil Code, if a creditor transfers his creditor's rights without notifying the debtor, the transfer is not effective for the debtor. This article clearly points out that China adopts the principle of notification on the issue of the effectiveness of the assignment of creditor's rights to the debtor. Where the creditor transfers its rights, it only needs to notify the debtor, which is effective for the debtor.

According to article 545 of the Civil Code

A creditor who transfers his creditor's rights may transfer all or part of his creditor's rights to a third party, except in any of the following circumstances:

(a) according to the nature of the creditor's rights shall not be transferred;

(two) according to the agreement of the parties shall not be transferred;

(3) It shall not be transferred according to law.

If the parties agree that the non-monetary creditor's rights cannot be transferred, they may not confront a bona fide third party. If the parties agree that the creditor's rights are not transferable, they may not oppose a third party.

legal ground

Article 546th of the Civil Code of People's Republic of China (PRC) * * * Creditor's right is notified to transfer the creditor's right. If the debtor is not notified, the assignment is invalid to the debtor. The notice of assignment of creditor's rights shall not be revoked, except with the consent of the transferee.