Which of the following is an illustration of the possession of tangible token rule?
A) An obligee who is owed $10,000 assigns the right of collection $5,000 each to two assignees.
B) The right of collecting a debt is recorded in the assignee's savings account passbook.
C) The assignee can re-assign the right only to a sub-assignee selected by the obligee.
D) An obligee cannot assign a right to collection of more than once.

Question

Quizplus · Accepted Answer

The possession of tangible token rule states that an assignment is valid when there is a tangible or written evidence of the assignment. In this case, recording the right of collecting a debt in the assignee's savings account passbook is a tangible evidence and illustrates the possession of tangible token rule. Choices A, C, and D do not specifically relate to the possession of tangible token rule.

Which of the Following Is an Illustration of the Possession