Definition of assignment

1. signing over title, rights, or other interests to another person.
2. in a letter of credit (L/C), transfer by a beneficiaryof all or part of the credit facility to another party, which must be confirmed by the advising bank.
3. writing on the back of a stock certificate transferring ownership to another holder.
4. transfer of debtor's property to creditors, called an assignment for the benefit of creditors. Transfers in the 90 days prior to a bankruptcy petition may, however, be set aside by a bankruptcy trustee.See also voidable preference.
5. option writer's notice to the Options Clearing Corp. of his intention to fulfill an offsetting buy, resulting in all assignment in favor of the seller.

transfer of rights under an insurance policy to another person or business. For example, to secure a debt, it is not uncommon for the policyowner to transfer to the creditor his rights to borrow on the cash value. Life insurance policies are freely assignable to secureloans and notes (property and casualty insurance policies are not). Creditors such as banks often have printed assignment forms on hand at the time of making loans.

transfer of rights under an insurance policy to another person or business. For example, to secure a debt, it is not uncommon for the policyowner to transfer to the creditor his rights to borrow on the cash value. Life insurance policies are freely assignable to secure loans and notes (property and casualty insurance policies are not). Creditors such as banks often have printed assignment forms on hand at the time of making loans.

the method by which a right or contract is transferred from one person to another. Contracts commonly assigned include leases, mortgages, and deeds of trust.

Example: A tenant signs an assignment giving another the rights to use the leased space.