Assignment of Credit Chile (Cesión de Crédito)

Assignment of Credit Chile (Cesión de Crédito) is a legal transaction governed by Código Civil Arts. 1901–1914 by which a creditor (cedente / assignor) transfers the right to collect a monetary claim or other credit right against a debtor (deudor cedido) to a third party (cesionario / assignee), who acquires all the rights and privileges attached to the assigned credit. The Cesión de Crédito is one of three forms of cession regulated under Title XXV of Book IV of the Código Civil — alongside cesión de derechos litigiosos (Art. 1911–1914) and cesión de derechos hereditarios (Arts. 1909–1910) — and represents the standard mechanism for the commercial transfer of receivables and credit rights in Chile.

The legal framework for the Cesión de Crédito in Chile rests within Book IV of the Código Civil (promulgated by Ley 1.831 of 1855, coordinated by Decreto con Fuerza de Ley N° 1 of 2000 of the Ministerio de Justicia y Derechos Humanos). Art. 1901 establishes the foundational rule: the cedente transfers the credit to the cesionario by delivery (entrega) of the written title (título) documenting the credit, whether that title is a contrato de mutuo, factura, pagaré, letra de cambio, or other written instrument. Art. 1902 provides that the cession is not opposable (oponible) against the deudor cedido or against third parties until the deudor cedido has been notified of the cession by the cesionario, or has acknowledged the cession — notification is the critical perfection step that binds the debtor to pay the cesionario rather than the cedente.

The Comisión para el Mercado Financiero (CMF) regulates the commercial application of credit assignments in the Chilean financial system. Factoring companies (empresas de factoring) — which are the most frequent users of credit assignment mechanisms in Chile — acquire accounts receivable (facturas por cobrar, créditos comerciales) from businesses through Cesiones de Crédito under Código Civil Arts. 1901–1914 and Ley 19.983 de 2004 on the negotiability of invoices (la factura como título ejecutivo). The CMF supervises factoring companies under the Ley 21.000 of 2017 that created the CMF as the successor to the Superintendencia de Bancos e Instituciones Financieras (SBIF). Banks regulated under the Ley General de Bancos (DFL N° 3) also routinely assign loan portfolios and credit rights between institutions.

The Ley 19.983 of 2004 introduced a parallel mechanism for the assignment of commercial invoices (facturas de compraventa y de servicios) as negotiable instruments — under Art. 5 of Ley 19.983, a factura can be transferred by endorsement (cesión mediante endoso) on the back of the invoice itself, without requiring a separate written deed. For non-factura credits — loans (mutuos), promissory notes (pagarés) not transferred by endorsement, judicial judgments, and other contractual rights — the full Cesión de Crédito procedure under Código Civil Arts. 1901–1914 applies.

The Corte Suprema de Chile has established through consistent case law — including Rol N° 4.892-2019 — that the cedente guarantees the existence (existencia) of the credit at the time of cession under Art. 1907 of the Código Civil, but does not guarantee the solvency (solvencia) of the deudor cedido unless expressly stipulated. This cedente warranty limitation is a critical commercial consideration: the cesionario bears the risk that the debtor may be insolvent or may successfully assert defences against payment, unless the cedente expressly warrants the debtor's creditworthiness. The Cesión de Crédito operates as a título derivativo — the cesionario acquires no greater rights than the cedente possessed at the time of assignment, and the deudor cedido may assert against the cesionario all defences (excepciones) that were available against the cedente under Art. 1905 of the Código Civil.

An Assignment of Credit Chile is needed whenever a creditor wishes to transfer the right to collect an outstanding monetary claim to a third party — whether to monetise receivables immediately, to satisfy an obligation owed to the cesionario, or to restructure a credit portfolio.

The document is required when a business (proveedor / supplier) holds outstanding invoices (facturas por cobrar) and wishes to sell these receivables to a factoring company (empresa de factoring) regulated by the CMF for immediate liquidity. Under Código Civil Arts. 1901–1902, the supplier executes a Cesión de Crédito assigning the factura rights to the factoring company, which then collects directly from the original debtor. The factoring company must notify the deudor cedido of the cession to perfect the assignment and ensure the debtor pays the cesionario rather than the original creditor.

A Cesión de Crédito is essential when a creditor holds a loan receivable (cartera de crédito) and wishes to sell or transfer this portfolio to another financial institution, investor, or securitisation vehicle. Banks regulated under the Ley General de Bancos (DFL N° 3) routinely assign mortgage portfolios (carteras hipotecarias) and consumer loan receivables to Fondo de Inversión (investment fund) vehicles regulated by the CMF under Ley 20.712 (Ley Única de Fondos) for securitisation purposes.

The document is needed when a natural person creditor — who has lent money to a third party evidenced by a contrato de mutuo or Confesión de Deuda — wishes to transfer the right to collect that loan to another party, for example as payment in kind (dación en pago) to settle a separate obligation, or as a gift (donación) to a family member. Under Código Civil Art. 1901, delivery of the written credit instrument to the cesionario effects the transfer between the parties, and subsequent notification to the deudor cedido perfects the cession against the debtor.

Businesses undergoing insolvency proceedings under Ley 20.720 (Ley de Reorganización y Liquidación de Empresas y Personas) may need to execute Cesiones de Crédito to assign receivables as part of a reorganisation plan (acuerdo de reorganización) approved by the Superintendencia de Insolvencia y Reemprendimiento (SIR). The SIR oversees insolvency proceedings and the assignment of assets in liquidation under the Ley 20.720 framework.

A valid Assignment of Credit Chile under Código Civil Arts. 1901–1914 must contain the following elements to be effective between the parties and opposable against the deudor cedido and third parties.

Identification of the Cedente (Assignor): Full legal name, RUT (Rol Único Tributario assigned by the Servicio de Impuestos Internos, SII), cédula de identidad number issued by the Servicio de Registro Civil e Identificación, and domicile. For legal entities — Sociedad Anónima (SA) under Ley 18.046, Sociedad por Acciones (SpA) under Código de Comercio Arts. 424–446, or Sociedad de Responsabilidad Limitada (SRL) under Ley 3.918 — the razón social, RUT, Registro de Comercio inscription details, and the name and authority of the signing representative must be stated.

Identification of the Cesionario (Assignee): Same identification elements as the cedente. For CMF-regulated factoring companies, the regulatory authorisation number and supervising entity (CMF) should be referenced. For investment funds (Fondos de Inversión) under Ley 20.712, the fund's RUT, registered name, and managing administradora de fondos (AFI) must be identified.

Identification of the Deudor Cedido (Assigned Debtor): Full legal name, RUT, and domicile of the debtor whose obligation is being assigned. The deudor cedido is not a party to the cession agreement but is directly affected — once notified, the debtor must pay the cesionario and not the cedente. The document should reference any prior instruments (contract number, invoice numbers, pagaré folio) identifying the obligation owed by the deudor cedido.

Description of the Assigned Credit: A precise description of the credit right being assigned — its legal basis (contrato de mutuo, facturas de compraventa under Ley 19.983, sentencia judicial, pagaré endorsed in blank, or other instrument), the original amount, accrued interest, and the current outstanding balance at the date of cession. Under Art. 1906 of the Código Civil, the cession includes all privileges (privilegios), guarantees (cauciones), and accessories (accesorios) attached to the credit — mortgage security (hipoteca), pledge (prenda), personal guarantees (fianza), and penalty clauses — unless expressly excluded.

Consideration (Precio de la Cesión): The agreed price or consideration for the cession — whether a monetary amount in CLP or UF paid by the cesionario to the cedente (as in a factoring or portfolio sale transaction), a non-monetary equivalent (dación en pago or novación), or a statement that the cession is gratuitous (a título gratuito, as in a donation or inheritance advance). For factoring transactions, the price typically reflects the face value of the assigned invoices discounted by the factoring fee (tasa de descuento) and interest for the period until maturity, in compliance with Ley 18.010 interest rate limits.

Cedente's Warranty Under Art. 1907: An express statement of the warranty provided by the cedente — whether the cedente warrants only the existence (existencia) of the credit at the time of cession (the default warranty under Art. 1907), or additionally warrants the solvency (solvencia) of the deudor cedido. The cedente's default warranty is limited to existence: if the assigned credit does not exist (e.g., the underlying contract was void), the cedente must indemnify the cesionario. The cedente does not warrant that the debtor will pay (i.e., solvency risk is borne by the cesionario) unless the cession deed includes an express solvency guarantee — this distinction is critical for factoring transactions.

Delivery of the Written Title (Entrega del Título): Under Código Civil Art. 1901, the cession is perfected between cedente and cesionario by delivery of the written title documenting the credit. The cession deed should confirm that the original title document — the contrato de mutuo, original factura, pagaré, or other written instrument — is being delivered to the cesionario simultaneously with or immediately after execution of the cession deed.

Notification to the Deudor Cedido (Notificación al Deudor): Under Código Civil Art. 1902, the cession is not opposable against the deudor cedido or third parties until the deudor cedido has been notified by the cesionario or has acknowledged the cession. The cession deed should include a formal notification clause to be delivered to the deudor cedido — ideally by carta certificada (registered mail), notarial notification, or personal delivery with acknowledgement of receipt — specifying the assigned credit amount, the cesionario's identity, and the instruction to make all future payments to the cesionario. Failure to notify means the deudor cedido validly discharges the debt by paying the original cedente.

Transfer of Ancillary Rights: Confirmation that the cession transfers all ancillary rights attached to the credit under Art. 1906 of the Código Civil — including any mortgage (hipoteca) registered at the Conservador de Bienes Raíces, pledge (prenda), personal surety (fianza), or penalty clause. For mortgage-backed loans, a separate anotación marginal at the Conservador de Bienes Raíces is required to reflect the cession of the underlying credit.

forms-legal.com provides this Assignment of Credit Chile template as a reference for cedentes and cesionarios in Chilean commercial practice. For high-value credit portfolio assignments, CMF-regulated factoring transactions, securitisation vehicles under Ley 20.712, and mortgage-backed credit assignments requiring Conservador de Bienes Raíces registration, the document should be reviewed and executed by a licensed abogado with expertise in Chilean credit law and the Código Civil.