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Credit Assignment Agreement Template for Philippines

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Key Requirements PROMPT example:

Credit Assignment Agreement

"I need a Credit Assignment Agreement for transferring a portfolio of consumer loans worth 5 million Philippine Pesos from our bank to a debt collection agency, with the transfer to be completed by March 15, 2025, including provisions for debtor notification and data privacy compliance."

Document background
The Credit Assignment Agreement is a fundamental document in Philippine financial transactions, used when one party wishes to transfer their credit rights to another party. This agreement is essential in various scenarios, including debt portfolio sales, business restructuring, or financial asset management. The document must comply with the Civil Code of the Philippines, particularly Articles 1624-1635, and relevant financial regulations. It typically includes detailed information about the assigned credits, payment terms, representations about the validity of the credits, and procedures for notifying debtors. The agreement is commonly used by financial institutions, investment firms, and corporations for managing their credit portfolios and must incorporate specific requirements under Philippine banking and finance laws.
Suggested Sections

1. Parties: Identification of the Assignor and Assignee, including their complete legal names, addresses, and registration details

2. Background: Context of the assignment, including the origin of the credit rights being assigned and the purpose of the assignment

3. Definitions: Definitions of key terms used throughout the agreement

4. Assignment: Core provision detailing the transfer of rights from Assignor to Assignee, including the specific credit rights being assigned

5. Consideration: Details of the payment or other consideration for the assignment

6. Effective Date: Specification of when the assignment becomes effective

7. Representations and Warranties: Assignor's declarations regarding ownership, right to assign, and status of the credited rights

8. Assignor's Obligations: Ongoing obligations of the Assignor, including delivery of documents and cooperation requirements

9. Notice Requirements: Provisions regarding notification to the debtor and other relevant parties

10. Payment Terms: Details of how and when payment will be made for the assignment

11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Security Provisions: Include when additional security or collateral is provided for the assigned credits

2. Tax Provisions: Include detailed tax provisions when the assignment has significant tax implications

3. Further Assurance: Include when ongoing cooperation between parties may be needed after the assignment

4. Regulatory Compliance: Include when the assignment involves regulated entities or requires specific regulatory approvals

5. Confidentiality: Include when sensitive commercial information is involved

6. Assignment Restrictions: Include when there are limitations on further assignment of the rights

7. Indemnification: Include when specific indemnity provisions are needed beyond standard representations

8. Force Majeure: Include when long-term obligations exist that could be affected by extraordinary events

Suggested Schedules

1. Schedule A - Details of Assigned Credits: Comprehensive list and details of all credits being assigned, including account numbers, amounts, and maturity dates

2. Schedule B - Original Credit Documentation: List of all original credit agreements and related documents being transferred

3. Schedule C - Payment Schedule: If payment is in installments, detailed schedule of payment dates and amounts

4. Schedule D - Form of Notice to Debtor: Template of the notice to be sent to debtors informing them of the assignment

5. Schedule E - Transfer Documents: Forms of any additional transfer documents required to perfect the assignment

6. Appendix 1 - Corporate Authorizations: Copies of corporate resolutions and authorizations for the assignment

7. Appendix 2 - Regulatory Approvals: Copies of any required regulatory approvals or licenses

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

Relevant legal definitions








































Clauses
































Relevant Industries

Banking

Financial Services

Debt Collection

Asset Management

Investment Banking

Corporate Finance

Real Estate

Insurance

Private Equity

Commercial Lending

Relevant Teams

Legal

Finance

Risk Management

Treasury

Compliance

Credit Operations

Portfolio Management

Corporate Affairs

Investment

Debt Collection

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Credit Manager

Risk Manager

Investment Manager

Portfolio Manager

Treasury Manager

Compliance Officer

Financial Controller

Debt Collection Manager

Asset Manager

Banking Operations Manager

Corporate Secretary

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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