Can an assignment be signed electronically?

Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are satisfied.

When is notarization required?

Notarization depends on state law and the type of claim. Some jurisdictions or payers require notarized acknowledgements for recordation or payment; check local rules before execution.

Must I notify the obligor of the assignment?

Notice is not always legally required but is best practice to avoid double payment and ensure obligor remits to the assignee. Certain statutes or contracts may mandate notice.

What if the assignor lacked authority to assign?

Assignments executed without proper authority risk being void or voidable; confirm corporate resolutions, power of attorney, or assignment rights before accepting an assignment.

How do I correct a defective assignment?

Prepare a corrective assignment or ratification signed by authorized parties, document consideration if necessary, and re-notify the obligor; consult counsel for material disputes.

Is a digital signature required instead of an e-signature?

Not usually. A cryptographic digital signature offers stronger non-repudiation, but U.S. law accepts a broad range of electronic signatures unless a specific regulation requires PKI or digital certificates.

Electronic Signature
Templates
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Assignment of Claims

Assignment of Claims

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ASSIGNMENT OF CLAIMS – CORPORATION

(N.D.S. § 35-27-27)

Prepared by, recording requested by
and return to:

Name:

Company:

Address:

City: Zip:

State:

Phone:

Fax:

---------Above this Line for Official Use Only----------

COMES NOW, , a as a representative of

corporation who has provided labor or materials for the improvement of the property located at and described as

and would state as follows:

1. On or about the day of , 20 the undersigned lien claimant,

of the following address

filed a Verified Notice of Intention to Claim Mechanic's Lien regarding the above described property in the amount of $

2. Said lien and the right to recover therefore under the provisions of N.D.S. § 35-27-01 et seq., are hereby expressly assigned to

of the following mailing address,

3. This assignment vests in the assignee all rights and remedies herein given, subject to all defenses that might have been interposed if such assignment had not been made.

This the day of , 20

Signature

Type or Print Name

Attest: Secretary

Title

Corporation

STATE OF NORTH DAKOTA

COUNTY OF

The foregoing instrument was acknowledged before me this day of

20 by (name of

officer or agent and title of officer or agent) of

(name of corporation acknowledging), a (state or
place of incorporation) corporation, on behalf of the corporation.

My Commission Expires:

Notary Public

Printed Name:

Assignment of Claims Page 1 of 2

Assignment of Claims Page 2 of 2

What an Assignment of Claims Is and what it does

An Assignment of Claims is a written instrument that transfers the right to pursue, collect, or enforce a specific claim from one party (the assignor) to another (the assignee). It typically identifies the parties, describes the claim or account being assigned, notes any consideration, states the effective date, and specifies governing law. Assignments are used for receivables, insurance subrogation, contract claims, and settlement rights. Proper form and execution help ensure the assignee has standing to enforce the assigned claim and reduce disputes about ownership or authority.

Why documenting an assignment matters

A clear Assignment of Claims establishes who has legal authority to pursue recovery, receive settlement proceeds, or enforce remedies. It reduces ambiguity about ownership, supports enforcement in litigation or collection, and creates a record for lenders, insurers, and courts when rights change hands.

Who typically prepares and signs assignments

Typical parties who complete an Assignment of Claims include creditors, assignees, insurers, collection agencies, and attorneys handling transfer of receivables or causes of action.

Commercial creditors and finance companies transferring receivables to third-party buyers or factors.
Insurance carriers assigning subrogation or subrogated claims to vendors or other carriers.
Law firms and funders assigning proceeds or funding interests related to contingency fees or settlements.

Typical signatories and their roles

Claims Manager

A claims manager operates for the assignor, verifies claim details and any underlying documentation, and signs as the authorized representative to transfer collection rights to the assignee.

Assignee Representative

A collections or legal representative for the assignee accepts assignment terms, confirms consideration or payment, and signs to acknowledge receipt of rights and authority to enforce or collect the assigned claim.

Essential security and compliance safeguards

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit trail: Detailed timestamps and IP address logging

HIPAA (when needed): BAA required for PHI-containing assignments

Authentication: Multi-factor or SMS code options available

Record retention: Secure storage with tamper-evident logs

Access controls: Role-based permissions and SSO support

Step-by-step: completing an Assignment of Claims

Follow these sequential steps to prepare, execute, and deliver a valid Assignment of Claims.

01

Prepare draft: Describe the claim fully and specify consideration terms.
02

Review authority: Confirm signatory authority and corporate approvals.
03

Execute: Obtain signatures, dates, and notarization if required.
04

Notify parties: Deliver notice to obligor/payer and record if applicable.

How electronic completion and delivery work

The typical e-sign workflow maps directly to assignment execution and helps track each step for audit and enforcement.

Upload document: Sender uploads the assignment to the eSignature platform.
Place fields: Add signature, date, and initial fields for each party.
Add signers: Specify signer order and authentication level.
Collect signatures: Signers receive links and sign; audit trail is recorded.

Configuring an online assignment workflow

Recommended workflow settings help maintain legal validity and streamline delivery for high-volume assignments.

Field	Configuration
Authentication method	Email link, SMS code, or stronger KBA where required
Conditional fields	Use to show clauses only when relevant
Template reuse	Save a template for repeated assignment types
Notifications	Enable signer and receiver email confirmations

Platform and file requirements for e-submission

Verify file formats, authentication, and any compliance addenda before sending assignments electronically.

File formats: PDF, DOCX, or HTML recommended
Integrations: CRM and storage connectors available
Audit requirements: Tamper-evident audit trail required

Common timing and notice expectations

Timing for delivery, notice, and recording affects enforceability and the obligor’s payment obligations.

Effective Date and Delivery:

Assignment becomes effective on the stated date or delivery to assignee.

Notice to Debtor:

Prompt notice to the obligor prevents dual payment and clarifies payee.

Recordation (if applicable):

Record assignments where statutes require to protect priority rights.

Statute of Limitations:

Note any running limitation periods for enforcement or tolling effects.

Accounting and Reporting:

Update receivables and notify accounting teams for tax reporting.

Key milestones from draft to enforcement

Track these sequential milestones to ensure the Assignment of Claims is actionable and enforceable.

01

Draft and Internal Approval

Finalize language and obtain corporate or client approvals before execution.

02

Execution and Notarization

Collect signatures and notarize if payer or jurisdiction requires.

03

Notice to Obligor

Deliver written notice to the debtor or payer of the assignment.

04

Recordation or Filing

File or record the assignment when statutory priority or public notice is needed.

How an Assignment compares with similar instruments

Compare assignment features with novation to choose the proper mechanism for transferring rights or obligations.

Criteria	Assignment	Novation
Effect on obligor	no change	liability transfers
Consent required	usually no	required from obligor
Primary use	transfer collection rights	replace contract party
Typical consequence	assignee enforces	obligor released

Typical eSignature vendor comparison for assignments

Compare starting price and common eSignature features relevant to executing Assignment of Claims documents; signNow appears first for vendor alignment and feature parity.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Common preparation errors to avoid

Using informal descriptions instead of precise identifiers (invoice numbers, contract IDs) leads to disputes over which claims were assigned.
Failing to confirm signatory authority or corporate approval can result in a void or challengeable assignment.
Neglecting to notify the obligor or payer promptly can create double-payment risk and collection complications.
Overlooking governing law, consideration statements, or ambiguous release language creates litigation exposure and delays enforcement.

Legal and practical consequences of a flawed assignment

Unenforceability: May be unenforceable

Double payment risk: Obligor may pay original party

Priority loss: Failing to record can impair priority

Tax reporting issues: Incorrect payee info triggers withholding

Counterclaims exposure: Assignee inherits potential defenses

Regulatory breaches: HIPAA or state rules may be violated

Real-world assignment scenarios and outcomes

Two concise examples show how assignments are used in practice and the operational steps that followed.

Commercial Receivable Transfer

A mid-size supplier assigned a pool of receivables to a factor to improve cash flow

Factor paid discounted consideration and obtained receivable lists
The assignment included precise invoice IDs and notice to debtors, enabling prompt collections and accounting updates without dispute.

Insurance Subrogation Assignment

An insurer assigned subrogation rights to a specialist for a large casualty claim

Specialist agreed to pursue recovery for a contingency fee
The assignment included proof of loss, policy references, and a confidentiality addendum so evidence could be pursued efficiently.

Frequently asked questions about assignments

Answers to common questions about validity, signature methods, notice, and how to correct common errors when assigning claims.

Need help? Contact support

Can an assignment be signed electronically?
Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are satisfied.
When is notarization required?
Notarization depends on state law and the type of claim. Some jurisdictions or payers require notarized acknowledgements for recordation or payment; check local rules before execution.
Must I notify the obligor of the assignment?
Notice is not always legally required but is best practice to avoid double payment and ensure obligor remits to the assignee. Certain statutes or contracts may mandate notice.
What if the assignor lacked authority to assign?
Assignments executed without proper authority risk being void or voidable; confirm corporate resolutions, power of attorney, or assignment rights before accepting an assignment.
How do I correct a defective assignment?
Prepare a corrective assignment or ratification signed by authorized parties, document consideration if necessary, and re-notify the obligor; consult counsel for material disputes.
Is a digital signature required instead of an e-signature?
Not usually. A cryptographic digital signature offers stronger non-repudiation, but U.S. law accepts a broad range of electronic signatures unless a specific regulation requires PKI or digital certificates.

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