Assignments and Endorsements.

Ala. Code tit. 8, ch. 5, art. 2

in effect

Ala. Code § 8-5-20 Bonds, Contracts, Writings for Payment of Money, Etc., Assignable by Endorsement.

8-5-20. Bonds, Contracts, Writings for Payment of Money, Etc., Assignable by Endorsement. All bonds, writings, and contracts for the payment of money, or other thing, or the performance of any act or duty, are assignable by endorsement so as to authorize an action thereon by each successive endorsee. (Code 1852, §1530; Code 1867, §1838; Code 1876, §2099; Code 1886, §1762; Code 1896, §876; Code 1907, §5158; Code 1923, §9231; Code 1940, T. 39, §200.)

Ala. Code § 8-5-21 Assignment of Future Wages Void.

8-5-21. Assignment of Future Wages Void. (a) All assignments made by any person of salaries or wages, to be earned in the future, shall be absolutely void. (b) The provisions of this section shall also apply to orders given by employees covering the whole or part of future wages. (Acts 1911, No. 226, p. 370; Code 1923, §9232; Code 1940, T. 39, §201.)

Ala. Code § 8-5-22 Right to Assign Interest in Crops.

8-5-22. Right to Assign Interest in Crops. Nothing in Section 8-5-21 shall be construed to affect the right of the laborer under Section 35-9-37 to assign his interest in a crop. (Code 1923, §9234; Acts 1935, No. 159, p. 202; Code 1940, T. 39, §203.)

Ala. Code § 8-5-23 Property Injury Claims Against Railroads Assignable.

8-5-23. Property Injury Claims Against Railroads Assignable. Claims against railroad companies for injuries to property may be assigned in writing, and each successive assignee thereof may bring an action thereon in his own name. (Code 1876, §2119; Code 1886, §1763; Code 1896, §877; Code 1907, §5159; Code 1923, §9235; Code 1940, T. 39, §204.)

Ala. Code § 8-5-24 Effect of Transfer of Bill, Note, Etc., Given for Purchase Money of Lands.

8-5-24. Effect of Transfer of Bill, Note, Etc., Given for Purchase Money of Lands. The transfer of a bond, bill, or note given for the purchase money of lands, whether the transfer be by delivery merely or in writing, expressed to be with or without recourse on the transferor, passes to the transferee the lien of the vendor of the lands. (Code 1886, §1764; Code 1896, §878; Code 1907, §5160; Code 1923, §9236; Code 1940, T. 39, §205.)

Ala. Code § 8-5-25 Contracts, Writings and Paper Circulated as Money Subject to Payments, Setoffs and Discounts Prior to Notice of Assignment.

8-5-25. Contracts, Writings and Paper Circulated as Money Subject to Payments, Setoffs and Discounts Prior to Notice of Assignment. All contracts and writings, except such as are governed by the Uniform Commercial Code, and paper issued to circulate as money, are subject to all payments, setoffs, and discounts had or possessed against the same previous to notice of an assignment or transfer. (Code 1852, §1531; Code 1867, §1839; Code 1876, §2100; Code 1886, §1765; Code 1896, §879; Code 1907, §5161; Code 1923, §9237; Code 1940, T. 39, §206; Acts 1965, No. 549, p. 811.)

Ala. Code § 8-5-26 Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Time for Bringing Action Against Maker; Issuance of Execution When Judgment Obtained; Proof of Inability of Maker to Pay Judgment.

8-5-26. Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Time for Bringing Action Against Maker; Issuance of Execution When Judgment Obtained; Proof of Inability of Maker to Pay Judgment. (a) On all contracts assigned by writing which are not governed by the Uniform Commercial Code, an action to charge the endorser or assignor must be brought against the maker within 30 days after an action can properly be brought. (b) If judgment is obtained, execution must be issued as authorized by law, and the inability of the maker to pay such judgment proved by the return of “no property.” (Code 1852, §§1543, 1544; Code 1867, §§1851, 1852; Code 1876, §§2112, 2113; Code 1886, §1778; Code 1896, §892; Code 1907, §5153; Code 1923, §9226; Code 1940, T. 39, §195; Acts 1965, No. 549, p. 811.)

Ala. Code § 8-5-27 Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Extension or Waiver of Time for Bringing Action by Endorser or Assignor.

8-5-27. Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Extension or Waiver of Time for Bringing Action by Endorser or Assignor. The time for bringing the action, as required by Section 8-5-26, may be extended or waived by the consent of the endorser or assignor in writing signed by him. (Code 1852, §1545; Code 1867, §1853; Code 1876, §2114; Code 1886, §1779; Code 1896, §893; Code 1907, §5154; Code 1923, §9227; Code 1940, T. 39, §196.)

Ala. Code § 8-5-28 Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - When Holder of Contract Excused from Bringing Action, Obtaining Judgment, Etc.

8-5-28. Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - When Holder of Contract Excused from Bringing Action, Obtaining Judgment, Etc. The holder of an endorsed or assigned contract which is not governed by the Uniform Commercial Code is excused from bringing an action, obtaining the judgment, and issuing the execution thereon when: (1) The maker has no known place of residence in the state; (2) By the use of ordinary diligence such residence cannot be ascertained; (3) The action has been commenced in the county of the residence of the maker and a summons to the first and next succeeding court returned not found by the proper officer; (4) A judgment against the maker has been defeated, in whole or in part, by a defense to the merits of such contract or writing or a setoff against any other than the endorsee or assignee; (5) Any defense, except a setoff to the merits of such contract or writing, exists which would prevent a judgment for all or any portion of the sum due or the value of the thing payable by such contract or writing; (6) The maker dies before the time expires for bringing an action or, if after an action brought, his estate is declared insolvent; or (7) By any act or promise of the endorser, the plaintiff is induced to delay bringing such an action. (Code 1852, §1546; Code 1867, §1854; Code 1876, §2115; Code 1886, §1780; Code 1896, §894; Code 1907, §5155; Code 1923, §9228; Code 1940, T. 39, §197.)

Ala. Code § 8-5-29 Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Applicability of Sections 8-5-26 through 8-5-28.

8-5-29. Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Applicability of Sections 8-5-26 through 8-5-28. All assignments or endorsements in writing of contracts which are not governed by the Uniform Commercial Code, whether regular or irregular, must be construed as within the meaning of Sections 8-5-26 through 8-5-28, unless the contrary clearly appears from such assignment or endorsement. (Code 1852, §1547; Code 1867, §1855; Code 1876, §2116; Code 1886, §1781; Code 1896, §895; Code 1907, §5156; Code 1923, §9229; Code 1940, T. 39, §198; Acts 1965, No. 549, p. 811.)

Ala. Code § 8-5-30 Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Costs Recoverable Against Assignor or Endorser.

8-5-30. Action to Charge Endorser or Assignor on Contracts Assigned by Writing and Not Covered by Uniform Commercial Code - Costs Recoverable Against Assignor or Endorser. The costs in an action against the maker in an assigned or endorsed contract which is not governed by the Uniform Commercial Code are recoverable in the action against the assignor or endorser. (Code 1852, §1548; Code 1867, §1856; Code 1876, §2117; Code 1886, §1782; Code 1896, §896; Code 1907, §5157; Code 1923, §9230; Code 1940, T. 39, §199.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026