law: Factoring Regulation Act, 2011 
  Chapter III Assignment
  
  of Receivables
  7. Assignment of
  
  receivables.-
  1.     
  
    Any
  
  assignor may, by an agreement in writing, assign any receivable due and payable
  
  to him by any debtor, to any factor, being the assignee, for a consideration as
  
  may be agreed between the assignor and the assignee and the assignor shall at
  
  the time of such assignment, disclose to the assignee any defences and right of
  
  set off that may be available to the debtor:
  Provided that if the
  
  debtor liable to pay the receivable or the business of factor is situated or
  
  established outside India, any assignment of receivable shall be subject to the
  
  provisions of the Foreign Exchange Management Act, 1999 (42 of 1999).
  1.     
  
  
  2.     
  
    On
  
  execution of agreement in writing for assignment of receivables, all the
  
  rights, remedies and any security interest created over any property exclusively
  
  to secure the due payment of receivable shall vest in the assignee and the
  
  assignee shall have an absolute right to recover such receivable and exercise
  
  all the rights and remedies of the assignor whether by way of damages or
  
  otherwise, or whether notice of assignment as provided in section 8 is given or
  
  not.
  3.     
  
    Any
  
  assignment of receivables which constitute security for repayment of any loan
  
  advanced by any Bank or other creditor and if the assignor has given notice of
  
  such encumbrance to the assignee, then on accepting assignment of such
  
  receivable, the assignee shall pay the consideration for such assignment to the
  
  Bank or the creditor, as the case may be.