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?

(a)-Fourth National Bank made an assignment.
(b)-Fourth National Bank revoke their Loan
(c)- Fourth National Bank Halted their Loan
(d)- None of these

Answer 1

The correct answer is (a)-Fourth National Bank made an assignment.

Step-by-step explanation:

Assignment means the transfer of any existing or future right, property or debt from one person to another.

The person who assigns the property is called "transferor" and the person to whom it is transferred is called "assignee".

Usually, the assignments are made from actionable claims such as book debts, insurance claims, etc.