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Deed Of Assignment By Way Of Security Template for Nigeria

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Key Requirements PROMPT example:

Deed Of Assignment By Way Of Security

"I need a Deed of Assignment by Way of Security for a manufacturing company assigning its equipment and machinery worth NGN 500 million as security for a 3-year term loan from Nigerian Commercial Bank, with the agreement to commence on March 1, 2025."

Document background
The Deed of Assignment by Way of Security is a crucial document in Nigerian commercial and financial transactions, particularly used in secured lending arrangements. It serves as a security instrument where an assignor transfers their rights in specific property to an assignee as security for obligations, while typically retaining possession and use of the property until default. This document type is commonly used in various contexts, from corporate financing to real estate transactions, and must comply with Nigerian legal requirements including proper registration and stamping. The deed includes essential details about the assigned property, the secured obligations, enforcement mechanisms, and the parties' rights and obligations. It's particularly important in the Nigerian context where secured lending plays a vital role in business financing, and the legal framework requires specific formalities for security interests to be effectively created and enforced.
Suggested Sections

1. Parties: Identification of the Assignor (security provider) and Assignee (security taker), including their full legal names, registration details if companies, and addresses

2. Background: Recitals explaining the context of the security arrangement, including reference to any underlying facility or obligation being secured

3. Definitions: Definitions of key terms used throughout the deed, including 'Assigned Property', 'Secured Obligations', and 'Security Period'

4. Assignment: The operative clause that effects the assignment of the property as security, including the granting language

5. Secured Obligations: Detailed description of the obligations being secured by the assignment

6. Representations and Warranties: Assignor's confirmations regarding ownership, authority to assign, and absence of encumbrances

7. Covenants: Assignor's ongoing obligations regarding the assigned property, including maintenance and protection of 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 default, including power of sale

10. Release and Reassignment: Provisions for releasing the security and reassigning the property upon satisfaction of secured obligations

11. Notices: Process for giving notices under the deed

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

Optional Sections

1. Further Assurance: Additional commitments to execute documents or perform actions to perfect the security - used when the assigned property may require additional documentation

2. Tax Provisions: Specific provisions dealing with tax implications - included when the assignment has significant tax considerations

3. Multiple Assignors: Additional provisions for joint and several liability - used when there are multiple assignors

4. Intellectual Property: Specific provisions for IP rights - included when the assigned property includes intellectual property

5. Registration: Specific requirements for registration of the security - included when the property requires special registration

6. Priority Arrangements: Provisions dealing with ranking of security - used when there are multiple security interests

7. Currency Provisions: Provisions dealing with foreign currency - included when the secured obligations are in foreign currency

Suggested Schedules

1. Schedule 1 - Description of Assigned Property: Detailed description of all assets being assigned as security

2. Schedule 2 - Secured Obligations: Detailed description of the underlying facility agreement or obligations being secured

3. Schedule 3 - Form of Notice: Template notices to be sent to relevant third parties regarding the assignment

4. Schedule 4 - Powers of Attorney: Detailed powers granted to the Assignee

5. Schedule 5 - Perfection Requirements: List of specific actions required to perfect the security

6. Appendix A - Related Documents: Copies or details of related agreements referenced in the deed

7. Appendix B - Registration Requirements: Checklist of registration requirements and forms

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

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Relevant Industries

Banking & Finance

Real Estate

Manufacturing

Oil & Gas

Telecommunications

Agriculture

Mining

Construction

Infrastructure

Retail & Commerce

Technology

Healthcare

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Secretariat

Credit

Property Management

Asset Management

Commercial

Business Development

Treasury

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Company Secretary

Corporate Lawyer

Banking Officer

Credit Risk Officer

Security Trustee

Property Manager

Asset Manager

Transaction Manager

Commercial Director

Business Development Manager

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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