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Debt Assignment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Debt Assignment Agreement is a crucial instrument in Saudi Arabian financial transactions, used when one party wishes to transfer its rights as a creditor to another party. This document is particularly relevant in debt restructuring, portfolio sales, or strategic debt transfers within the Kingdom. It must comply with both Saudi civil law and Sharia principles, particularly the Islamic concept of Hawalah (debt transfer). The agreement typically includes detailed provisions about the assigned debt, consideration, representations and warranties, and completion mechanics. It's commonly used by financial institutions, investment companies, and businesses engaged in debt trading or restructuring. The document requires careful attention to Saudi Arabian regulatory requirements, including necessary approvals, registrations, and compliance with the Banking Control Law where applicable.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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


































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Relevant Industries

Banking & Financial Services

Real Estate

Construction

Manufacturing

Energy & Resources

Healthcare

Telecommunications

Retail & Consumer

Investment & Private Equity

Islamic Finance

Infrastructure

Technology

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Control

Corporate Finance

Debt Recovery

Islamic Banking

Investment

Operations

Business Development

Relevant Roles

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

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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