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Debt Purchase Agreement for Austria

Debt Purchase Agreement Template for Austria

An Austrian law-governed agreement that facilitates the transfer of debt from one party (typically a financial institution) to another party (usually an investor or debt collection agency). The agreement covers the sale and purchase of single debts or debt portfolios, including terms of transfer, warranties, representations, and compliance with Austrian banking and data protection regulations. It addresses crucial aspects such as purchase price determination, transfer mechanics, and post-completion obligations, while ensuring compliance with Austrian civil law requirements for debt assignment (Zession).

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What is a Debt Purchase Agreement?

The Debt Purchase Agreement is a crucial document used in Austrian financial markets for the transfer of debt assets between parties. It is particularly utilized when financial institutions wish to sell non-performing loans, restructure their debt portfolios, or when investors seek to acquire debt assets. The agreement must comply with Austrian civil law, particularly the provisions of the ABGB regarding assignments (Zession), as well as banking regulations (BWG) and data protection laws. This document typically includes detailed information about the debt being transferred, purchase price calculations, representations and warranties, and completion mechanics. It's commonly used in both single debt transfers and portfolio sales, requiring careful consideration of regulatory requirements, especially when dealing with consumer debt or banking sector obligations.

What sections should be included in a Debt Purchase Agreement?

1. Parties: Identification of the seller and purchaser of the debt, including full legal names and registration details

2. Background: Context of the transaction, including brief description of the debt being sold and the parties' intentions

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core terms of the transaction, including the debt being sold and purchase price

5. Conditions Precedent: Conditions that must be satisfied before completion of the purchase

6. Completion: Details of when and how the transfer will take place, including mechanics of payment and transfer

7. Representations and Warranties: Seller's and purchaser's representations regarding their capacity and the debt being sold

8. Seller's Undertakings: Ongoing obligations of the seller, including cooperation in transfer and documentation

9. Assignment and Transfer: Legal mechanics of the debt transfer and any restrictions on further assignment

10. Confidentiality: Obligations regarding confidential information and data protection compliance

11. Notices: Process for formal communications between parties

12. Governing Law and Jurisdiction: Confirmation of Austrian law governance and jurisdiction for disputes

13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Debt Purchase Agreement?

1. Security Transfer: Required when the debt is secured by collateral that needs to be transferred

2. Data Protection: Expanded section required when significant personal data is involved in the debt transfer

3. Regulatory Compliance: Required when either party is subject to specific regulatory requirements

4. Third Party Rights: Required when there are guarantors or other third parties with rights related to the debt

5. True Sale Provisions: Required when need to emphasize the transaction is a true sale rather than security

6. Consumer Protection: Required when the underlying debt involves consumer contracts

7. Servicing Arrangements: Required when the seller will continue to service the debt post-sale

What schedules should be included in a Debt Purchase Agreement?

1. Schedule 1 - The Debt: Detailed description and identification of the debt being purchased

2. Schedule 2 - Purchase Price Calculation: Methodology and calculations for determining the purchase price

3. Schedule 3 - Completion Requirements: Detailed list of documents and actions required for completion

4. Schedule 4 - Seller's Warranties: Detailed warranties given by the seller regarding the debt

5. Schedule 5 - Form of Transfer Notice: Template for notifying debtors of the transfer

6. Schedule 6 - Excluded Debts: List of any debts specifically excluded from the purchase

7. Appendix A - Data Protection Requirements: Detailed data protection obligations and procedures

8. Appendix B - Power of Attorney: Form of power of attorney for post-completion actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions














































Clauses








































Relevant Industries

Banking

Financial Services

Debt Collection

Investment Management

Asset Management

Private Equity

Credit Management

Financial Technology

Insurance

Commercial Lending

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Investment

Portfolio Management

Credit Risk

Due Diligence

Debt Recovery

Transaction Management

Relevant Roles

Chief Financial Officer

Head of Legal

Investment Manager

Portfolio Manager

Risk Manager

Debt Collection Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Treasury Manager

Investment Director

Portfolio Analyst

Transaction Manager

Due Diligence Specialist

Debt Recovery Specialist

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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