Question

Assume that Jack, Hal, and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from Fourth National Bank to pay for it. When their first payment is due, they get a letter from Bank of North America stating that they bought the loan from Fourth National Bank. Which of the following is true?

Answer 1

Answer:

Fourth National Bank made an assignment.

Explanation:

A standard form deed of assignment under which a lender (the assignor) assigns its rights relating to a facility agreement (also known as a loan agreement) to a new lender (the assignee). Only the assignor's rights under the facility agreement (such as to receive repayment of the loan and to receive interest) are assigned. The assignor will still have to perform any obligations it has under the facility agreement.