Credit Assignment Colombia (Cesión de Crédito)

A Credit Assignment Colombia (Cesión de Crédito) is a bilateral contract through which the holder of a credit right (cedente or acreedor original) transfers that right to a third party (cesionario or nuevo acreedor), who acquires the legal standing to demand payment from the debtor (deudor cedido), governed by the Código Civil (CC) — Ley 57 de 1887 — Articles 1959 through 1968 and complemented by the Código de Comercio (CCo) — Decreto 410 de 1971 — Article 887 for commercial credit transfers. The cesión de crédito is one of the principal mechanisms for transferring obligations in the Colombian legal system, alongside the endoso of títulos valores and the subrogación regulated by CC Articles 1666 through 1671.

The constitutional framework for credit assignment in Colombia derives from Article 58 of the Constitución Política de 1991, which protects property rights — including incorporeal rights such as credit claims — and Article 333, which guarantees economic freedom and the right to engage in commercial transactions. The Corte Constitucional in Sentencia C-1008 de 2010 confirmed that credit rights constitute protected property under Article 58 and may be freely transferred within the limits of public order and good faith.

Under CC Article 1959, the cesión de crédito encompasses the transfer of the principal credit right together with all accessory rights — guarantees (garantías), privileges (privilegios), interest claims (intereses devengados y futuros), and any security interests (hipotecas, prendas) that accompany the original obligation. The transfer operates by delivery (tradición) of the título (document evidencing the credit) from the cedente to the cesionario, accompanied by a written notation (nota de traspaso) specifying the identity of the cesionario, signed by the cedente under CC Article 1959.

The critical distinction between perfection inter partes and enforceability against third parties is established by CC Article 1961: the cesión produces effects between cedente and cesionario from the moment of delivery of the título, but only becomes enforceable against the debtor (deudor cedido) and against other third parties from the moment the debtor is notified (notificación) or accepts (aceptación) the assignment. The notification must be made by the cesionario through a judicial or extrajudicial process — the Corte Suprema de Justicia, Sala de Casación Civil, in Sentencia of 15 March 2006 confirmed that extrajudicial notification is sufficient when the debtor acknowledges receipt.

For commercial credits, CCo Article 887 establishes that the cesión of commercial credits follows the civil law rules unless the credit is embodied in a título valor — in which case transfer occurs through endoso under CCo Articles 654 through 667. The Superintendencia de Sociedades supervises commercial credit transfers involving companies under its oversight, and the Superintendencia Financiera de Colombia (SFC) regulates credit assignments by financial institutions — particularly in securitisation (titularización) operations under Decreto 2555 de 2010.

The cedente is liable to the cesionario for the existence of the credit (garantía de existencia) under CC Article 1965 — meaning the cedente guarantees that the credit exists, that it belongs to the cedente, and that the cedente has legal capacity to transfer it. However, under CC Article 1965, the cedente does not guarantee the solvency of the debtor (garantía de solvencia) unless expressly agreed. When the parties agree to a cesión con garantía de solvencia, the cedente assumes liability if the debtor fails to pay.

Factoring operations in Colombia — where companies sell accounts receivable to specialised factoring entities — constitute a form of cesión de crédito regulated by Ley 1231 de 2008 and supervised by the SFC. The Cámara de Comercio provides registration services for credit assignments involving commercial establishments under CCo Article 525.

A Credit Assignment (Cesión de Crédito) Colombia is needed whenever the holder of a credit right wishes to transfer that right to a third party, enabling the new creditor to collect from the original debtor under the Código Civil Articles 1959 through 1968 and CCo Article 887. The document formalises the transfer and establishes the rights and obligations of all parties — cedente, cesionario, and deudor cedido.

The cesión de crédito is required when a creditor sells outstanding receivables to a factoring company under Ley 1231 de 2008. Colombian factoring entities supervised by the Superintendencia Financiera de Colombia (SFC) purchase commercial invoices (facturas de venta) and loan portfolios at a discount, providing immediate liquidity to the original creditor. The cesión document specifies the discount rate, the credits transferred, and the notification procedure for each debtor.

The document is needed when banks and financial institutions transfer loan portfolios as part of securitisation (titularización) operations under Decreto 2555 de 2010. The SFC requires that each credit transfer within a titularización be documented through a formal cesión that identifies the individual credits, their amounts, interest rates, and maturity dates, confirming traceability for investors in the securities backed by the transferred portfolio.

A cesión de crédito is needed when a creditor in a judicial proceeding wishes to assign the right to collect a judgment (crédito litigioso) to a third party under CC Article 1969. The Código General del Proceso (CGP — Ley 1564 de 2012) Article 68 allows the cesionario of a crédito litigioso to substitute the cedente as plaintiff in the proceeding, subject to the court's approval and notification to the opposing party.

The document is required when businesses restructure their finances and transfer credit obligations between related companies — for example, when a parent company assigns receivables owed by customers to a subsidiary as part of a corporate reorganisation. Under the Régimen de Insolvencia Empresarial (Ley 1116 de 2006), credit assignments made within the 18 months preceding an insolvency proceeding may be subject to revocatory action (acción revocatoria) by the Superintendencia de Sociedades if they prejudice the debtor's other creditors.

A cesión de crédito is needed when an individual creditor — such as a landlord owed past-due rent, a supplier owed for delivered goods, or a professional owed fees — wishes to transfer the collection right to a debt collection agency or to another party willing to pursue recovery.

A valid Credit Assignment (Cesión de Crédito) Colombia under Código Civil Articles 1959 through 1968 and CCo Article 887 must contain the following essential elements to effectively transfer the credit right from the cedente to the cesionario and confirm enforceability against the deudor cedido.

Identification of the Parties: The full legal name and cédula de ciudadanía (or NIT for legal entities) of the cedente (assignor/original creditor), the cesionario (assignee/new creditor), and the deudor cedido (debtor). For legal entities, the representante legal must be identified with their cédula and the authority documented on the Certificado de Existencia y Representación Legal issued by the Cámara de Comercio.

Description of the Credit Right: A precise description of the credit being assigned — the original contract or document giving rise to the obligation, the principal amount (valor capital), accrued and future interest, maturity date or dates, and any instalment schedule. Under CC Article 1959, the cesión encompasses the principal credit and all accessory rights unless the parties expressly exclude specific accessories.

Transfer Price and Payment Terms: The price paid by the cesionario to the cedente for the credit assignment. Credits may be assigned at par value (valor nominal), at a premium, or at a discount. In factoring operations under Ley 1231 de 2008, the discount rate reflects the time value of money and the credit risk of the deudor cedido. The cesión may also be gratuitous (a título gratuito) — equivalent to a donation of the credit right under CC Article 1443.

Accessory Rights Transferred: Explicit identification of all guarantees, security interests, and privileges that accompany the credit under CC Article 1959 — including hipotecas (mortgages), prendas (pledges), fianzas (sureties), avales (guarantee endorsements), and any personal guarantees. Where the credit is secured by a hipoteca, the cesión must be registered with the Oficina de Registro de Instrumentos Públicos (ORIP) to perfect the transfer of the mortgage lien against third parties.

Guarantee of Existence: Under CC Article 1965, the cedente warrants that the credit exists, that it belongs to the cedente, and that the cedente has legal capacity to transfer it. The parties should specify whether the cedente also guarantees the solvency of the deudor cedido (garantía de solvencia) — absent express agreement, the cedente bears no liability for the debtor's inability to pay.

Notification to the Debtor: CC Article 1961 requires that the deudor cedido be notified of the cesión for the transfer to become enforceable against the debtor and third parties. The notification should include: identification of the cesionario, the amount and description of the transferred credit, and instructions for future payments. Until notified, the debtor may validly pay the cedente under CC Article 1962.

Delivery of the Título: Under CC Article 1959, the cedente must deliver to the cesionario the original document (título) evidencing the credit — the contract, pagaré, invoice, or other instrument — with a written notation (nota de traspaso) identifying the cesionario and signed by the cedente.

Date and Place of Execution: The city and date where the cesión is executed, establishing the moment from which the transfer produces effects between cedente and cesionario.

Forms-legal.com provides this Credit Assignment (Cesión de Crédito) Colombia template as a practical starting point for formalising credit transfers. Each cesión should be reviewed by an abogado civilista or comercialista to verify compliance with CC Articles 1959 through 1968, confirm the validity of the underlying credit, confirm proper notification under CC Article 1961, and address any registration requirements with the Oficina de Registro de Instrumentos Públicos for secured credits.