The rights of an obligor are not affected by an order assigning the right to payment until notice of the order is received by the obligor. For the purpose of this section, "obligor" means the person who is obligated to make payments to the judgment debtor or who may become obligated to make payments to the judgment debtor depending upon future developments.
§ 708.540.Obligor's Rights Not Affected Until Notice of Order Received
Title 9. Enforcement of Judgments · Division 2 · Chapter 6. Miscellaneous Creditors' Remedies · Article 6. Assignment Order · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 708.540 protects an obligor, meaning anyone who owes or may come to owe payments to the judgment debtor, from being affected by an assignment order until that obligor receives notice of the order.
Full Text of § 708.540
Plain-English Summary
This short section protects the person on the other end of the assigned payment stream, the obligor, defined here as whoever pays or might eventually have to pay the debtor. Until that obligor receives notice that a court has ordered the payment right assigned, the obligor's rights and obligations remain unaffected.
In practice, this means an obligor who pays the debtor directly, not yet knowing about the assignment order, has not violated the order. The rule puts the burden on the creditor to make sure notice reaches the obligor before relying on the assignment to redirect payments.
Frequently Asked Questions
Who counts as an obligor under this section?
The person obligated to pay the judgment debtor, or who may become obligated to pay depending on future developments.
When does an assignment order start affecting the obligor?
Only once the obligor receives notice of the order, not before.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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