This law clarifies that an assignment remains valid despite any fraudulent actions by the debtor or assignee. It ensures that consenting creditors retain their rights to their share of the assigned estate, allowing them to enforce these rights in court.
Assignments remain valid despite debtor's or assignee's fraud.
Consenting creditors can enforce their rights in court.
Innocent purchasers for value are exempt from this rule.
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In simple terms: Learn about Texas's FRAUD DOES NOT DEFEAT ASSIGNMENT. (a) An law, including definitions, penalties, and legal implications.. This means people must follow this rule, and breaking it can lead to criminal penalties.
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