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Security Assignment Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Security Assignment Agreement

"I need a Security Assignment Agreement under Hong Kong law for a renewable energy project, where the project company (as assignor) will assign its rights under key project contracts to secure a HKD 500 million facility agreement closing in March 2025."

Document background
The Security Assignment Agreement is a fundamental security document used in Hong Kong financing transactions where specific assets or rights are being assigned as security for obligations. It is commonly utilized in various contexts, including project financing, general corporate lending, and structured finance transactions. The document establishes the security interest by way of assignment, typically covering assets such as receivables, contract rights, insurance policies, or bank accounts. The agreement must comply with Hong Kong legal requirements, particularly regarding creation, perfection, and enforcement of security interests. It includes detailed provisions on the assigned assets, representations and warranties, covenants, enforcement mechanisms, and release conditions. The document is crucial for lenders and security holders to establish enforceable security rights while providing clarity to all parties regarding their respective rights and obligations under the security arrangement.
Suggested Sections

1. Parties: Identifies the Assignor, Assignee/Security Agent, and any other relevant parties to the agreement

2. Background: Sets out the context of the security assignment, including reference to any underlying facility or obligation being secured

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement

4. Assignment and Creation of Security: Core provision establishing the security assignment of the relevant assets

5. Representations and Warranties: Assignor's confirmations regarding ownership, capacity, and authority to assign the assets

6. Covenants: Ongoing obligations of the Assignor regarding the secured assets and maintenance of security

7. Further Assurance: Obligation to execute additional documents and take actions to perfect the security

8. Power of Attorney: Appointment of the Assignee as attorney to perfect or enforce the security

9. Enforcement: Rights and remedies of the Assignee upon occurrence of an enforcement event

10. Continuing Security: Confirms the security is continuing and covers all secured obligations

11. Discharge and Release: Conditions and process for releasing the security

12. Payments and Applications: How payments received will be applied and treated

13. General Provisions: Standard boilerplate provisions including notices, amendments, governing law, etc.

Optional Sections

1. Security Agent Provisions: Required when the security is held by a security agent on behalf of multiple beneficiaries

2. Currency Provisions: Required when the secured assets or obligations involve multiple currencies

3. Tax Gross-up: Include when payments under the agreement may be subject to withholding tax

4. Limited Recourse: Include when the Assignee's recourse is intended to be limited to specific assets

5. Contract Rights: Specific provisions when assigning rights under contracts requiring third party consent

6. Bank Account Security: Specific provisions for assignments of bank accounts including operation requirements

7. Insurance Provisions: Required when the security includes insurance policies or proceeds

Suggested Schedules

1. Schedule 1 - Assigned Assets: Detailed description of all assets subject to the security assignment

2. Schedule 2 - Form of Notice of Assignment: Template notice to be sent to relevant third parties

3. Schedule 3 - Form of Acknowledgment: Template acknowledgment to be obtained from relevant third parties

4. Schedule 4 - Perfection Requirements: List of specific actions required to perfect the security in different jurisdictions

5. Schedule 5 - Secured Obligations: Description of the obligations secured by the assignment

6. Schedule 6 - Existing Security: Details of any permitted existing security over the assigned assets

7. Appendix 1 - Supporting Documents: List of supporting documents required for registration and perfection

Authors

Alex Denne

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

Relevant legal definitions



























































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Relevant Industries

Banking

Financial Services

Real Estate

Infrastructure

Construction

Manufacturing

Energy

Telecommunications

Healthcare

Technology

Insurance

Investment Management

Private Equity

Relevant Teams

Legal

Finance

Treasury

Corporate Secretarial

Risk Management

Compliance

Credit

Banking Operations

Security Administration

Transaction Management

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Corporate Secretary

Treasury Manager

Risk Manager

Compliance Officer

Security Trustee

Facility Agent

Transaction Manager

Legal Director

Senior Associate

Partner

General Counsel

Banking Manager

Credit Officer

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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