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Debt Assignment Agreement
"I need a Debt Assignment Agreement for transferring a corporate loan of 5 million SAR from ABC Bank to XYZ Investment Company, with completion scheduled for March 2025, ensuring full Sharia compliance and including security transfer provisions."
1. Parties: Identification of the Assignor (current creditor), Assignee (new creditor), and Debtor
2. Background: Context of the original debt, reason for assignment, and confirmation of Sharia compliance
3. Definitions: Key terms used throughout the agreement, including 'Assigned Debt', 'Effective Date', and 'Original Debt Agreement'
4. Assignment: Core provision transferring the debt from Assignor to Assignee, including the scope of rights and obligations being transferred
5. Consideration: Details of payment or other consideration for the assignment
6. Completion: Mechanics and timing of the assignment completion, including conditions precedent
7. Representations and Warranties: Statements by Assignor regarding ownership, validity, and status of the debt
8. Assignor's Obligations: Obligations to facilitate the transfer and provide necessary documentation
9. Assignee's Obligations: Responsibilities of the Assignee post-assignment
10. Debtor Acknowledgment: Confirmation of the Debtor's acknowledgment of the assignment
11. Further Assurance: Commitment to take additional steps necessary to perfect the assignment
12. Notices: Communication protocols between parties
13. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction of Saudi courts
14. Execution: Signature blocks and execution requirements
1. Security Transfer: Required when existing security interests are being transferred with the debt
2. Partial Assignment: Needed when only a portion of the debt is being assigned
3. Confidentiality: Required for sensitive commercial transactions
4. Tax Provisions: Include when tax implications need to be addressed explicitly
5. Anti-Money Laundering Compliance: Required for high-value assignments or when parties are financial institutions
6. Multiple Debtor Provisions: Required when the original debt involves multiple debtors
7. Islamic Finance Compliance: Detailed Sharia compliance provisions when required by parties or nature of debt
1. Schedule 1 - Original Debt Agreement: Copy or details of the original debt agreement being assigned
2. Schedule 2 - Assigned Debt Details: Specific details of the debt being assigned, including amount, payment terms, and maturity
3. Schedule 3 - Completion Requirements: List of documents and actions required for completion
4. Schedule 4 - Form of Notice to Debtor: Template for formal notification to the Debtor
5. Schedule 5 - Security Documents: List and copies of any security documents related to the debt
6. Appendix A - Powers of Attorney: If required for execution or post-completion actions
7. Appendix B - Calculation of Consideration: Detailed breakdown of assignment price or consideration
Authors
Banking & Financial Services
Real Estate
Construction
Manufacturing
Energy & Resources
Healthcare
Telecommunications
Retail & Consumer
Investment & Private Equity
Islamic Finance
Infrastructure
Technology
Legal
Finance
Treasury
Compliance
Risk Management
Credit Control
Corporate Finance
Debt Recovery
Islamic Banking
Investment
Operations
Business Development
Chief Financial Officer
Finance Director
Legal Counsel
Compliance Officer
Investment Manager
Credit Manager
Treasury Manager
Risk Manager
Islamic Finance Specialist
Corporate Lawyer
Financial Controller
Debt Recovery Manager
Portfolio Manager
Transaction Manager
Chief Legal Officer
Business Development Director
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