Explanatory note

These Regulations deal with contractual terms which prohibit or restrict the assignment of receivables. A receivable is a right to be paid under a contract, but various types of contract are excluded from the scope of the Regulations. The Regulations provide that terms prohibiting the assignment of a receivable or preventing the assignee from determining the validity or value of a receivable or hindering their ability to enforce a receivable have no effect.

A full regulatory impact assessment of the effect of these Regulations on the costs of business and the voluntary sector is available from the Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London, SW1H 0ET or from www.gov.uk/beis .