The effect of restrictions on assignment on attempts to grant charges

Paul MacMahon

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: It remains unclear whether and how a no-assignment clause affects the grant of a charge over a contractual right. This article examines the question as a question of contractual construction, arguing that a no-assignment clause should not be read to prevent the grant of a charge, but should be understood to protect the obligor from enforcement actions by the chargee. The article cautions courts against strained constructions of contractual language now that legislation has addressed the perceived need to protect receivables financing. Courts should, moreover, adopt a standardised approach to interpretation of restrictions on assignment rather than look too closely at the particular context of each clause.

JEL-codes: F3 G3 (search for similar items in EconPapers)
Date: 2026-04-12
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Published in Butterworths Journal of International Banking and Financial Law, 12, April, 2026. ISSN: 0269-2694

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