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This entry was published on 2014-09-22
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SECTION 47-E
Vacating of an assignment, by order of a court
Personal Property (PEP) CHAPTER 41, ARTICLE 3-A
§ 47-e. Vacating of an assignment, by order of a court. 1. An
assignment may be vacated by a judgment of a court of record upon a
special proceeding brought by the assignor, his employer or any person
having an interest therein. Before such judgment shall be granted an
order to show cause and the petition upon which it was granted shall be
served upon the assignee, specifying the grounds upon which such relief
is sought and requiring the assignee to show cause, at a time and place
specified therein, why the assignment should not be vacated. If the
application is made by a person other than the assignor, a copy of the
order to show cause and the petition upon which it was granted shall be
served upon the assignor, as the court shall direct. Such order shall be
returnable at a special term of a court of record in the county where
the assignment is filed, if it has been filed, or, whether or not the
assignment has been filed, in the county where the assignor resides or
the county where the assignee resides, and shall be returnable at a time
not less than eight days from the service thereof unless the court to
whom the application is made shall find that a greater or lesser time is
appropriate in the circumstances.

The order to show cause and the petition upon which it was granted
shall be served upon the assignee either (1) by personal service, or (2)
by leaving them at his or its place of business with a person of
suitable age and discretion with directions to deliver them to the
assignee and mailing a copy by certified mail to the assignee directed
to the address specified in the assignment or if none is specified in
the assignment to his or its last known address, or (3) as the court may
direct. Proof of such service shall be made by affidavit. If the
assignee is a co-partnership consisting of two or more partners service
on one partner shall constitute service on the co-partnership.

2. Upon presentation of a transcript of a judgment pursuant to this
section, vacating an assignment, and upon payment of fees provided
therefor, a county clerk in whose office the assignment is filed shall
file the transcript of the judgment and shall enter on the margin of the
page where the assignment is entered, and against the assignment to
which the judgment relates, the words "Vacated by order of the court."

3. This section does not enlarge the territorial limits of the
jurisdiction of any court.

4. No assignment purporting upon its face or otherwise shown to have
been made in compliance with the direction of the court in an action or
proceeding in a family court or in a matrimonial action or proceeding in
a court of this state shall be vacated by an order pursuant to this
section.

5. In any proceeding under this section the court shall have
jurisdiction to consider any and all defenses to the assignment and the
debt secured thereby. The court may grant such interim relief as may be
appropriate. The burden of proving the assignment and the debt secured
thereby shall be on the assignee.