Effectiveness of the security right
Where the object of the security is an intangible obligation owed to
the debtor (for example, the bank’s obligations to the debtor on the debtor’s
bank accounts, the obligation of the debtor’s customers to pay for goods or
services rendered by the debtor), the required formalities for both the inter
partes and third party effectiveness of the security right can normally be met
by the simple execution of an assignment agreement signed by the debtor in
favour of the secured creditor as assignee. However, for the assignee to acquire the right to enforce an assigned claim against the assignor’s
contractual counterparty, the assignor has to notify him of the assignment so
that he knows to whom he must now fulfil his obligation