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Credit Assignment Agreement
"I need a Credit Assignment Agreement for transferring a €2.5M corporate loan portfolio from ABC Bank Limited to XYZ Investment Fund, with completion expected by March 15, 2025; the agreement should include specific provisions for handling multiple borrowers and associated security interests."
1. Parties: Identifies and defines the Assignor, Assignee, and any other relevant parties to the agreement
2. Background: Recitals explaining the context of the original credit arrangement and the purpose of the assignment
3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules
4. Assignment: Core provision detailing the assignment of rights, obligations, and interests from Assignor to Assignee
5. Consideration: Specifies the payment or other consideration for the assignment
6. Effective Date: Establishes when the assignment takes effect
7. Representations and Warranties: Assignor's representations regarding ownership, right to assign, status of credit, etc.
8. Covenants: Ongoing obligations of the parties, including cooperation in perfecting the assignment
9. Notice Requirements: Procedures for notifying the debtor and other relevant parties of the assignment
10. Further Assurance: Obligations to execute additional documents or take actions to give effect to the assignment
11. Governing Law and Jurisdiction: Specifies Irish law as governing law and sets jurisdiction for disputes
1. Security Interests: Required when the assigned credit is secured by collateral or guarantees
2. Regulatory Compliance: Needed when the assignment involves regulated financial institutions or consumer credit
3. Data Protection: Required when personal data is involved in the assigned credit
4. Anti-Money Laundering: Needed for assignments involving financial institutions or large sums
5. Step-In Rights: Optional provisions allowing Assignee to step into Assignor's position in related agreements
6. True Sale Provisions: Required in cases where the assignment needs to be characterized as a true sale rather than security
7. Currency Provisions: Needed when the assigned credit involves multiple currencies
8. Tax Provisions: Required when there are specific tax implications of the assignment
1. Schedule 1 - Details of Assigned Credit: Detailed description of the credit being assigned, including account numbers, amounts, and payment terms
2. Schedule 2 - Form of Notice to Debtor: Template notice to be sent to the debtor informing them of the assignment
3. Schedule 3 - Related Security Documents: List and copies of any security documents related to the assigned credit
4. Schedule 4 - Condition Precedents: List of documents and conditions required before the assignment becomes effective
5. Schedule 5 - Administrative Details: Contact details and payment instructions for all parties
6. Appendix A - Original Credit Agreement: Copy of the original credit agreement being assigned
7. Appendix B - Relevant Correspondence: Copies of material correspondence relating to the assigned credit
Authors
Financial Services
Banking
Investment Management
Insurance
Commercial Real Estate
Private Equity
Asset Management
Corporate Finance
Debt Collection
Alternative Lending
Legal
Finance
Credit Management
Risk Management
Compliance
Treasury
Portfolio Management
Corporate Finance
Debt Collection
Financial Control
Investment
Commercial
Legal Operations
Restructuring
Legal Counsel
Finance Director
Credit Manager
Risk Manager
Compliance Officer
Portfolio Manager
Treasury Manager
Corporate Lawyer
Debt Collection Manager
Financial Controller
Investment Manager
Commercial Director
Chief Financial Officer
Legal Operations Manager
Restructuring Officer
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