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Collateral Assignment Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Collateral Assignment Agreement

"I need a UAE-law Collateral Assignment Agreement for Emirates Bank as assignee, taking security over manufacturing equipment owned by Dubai Industrial Solutions LLC, to secure a AED 5 million equipment financing facility closing on March 15, 2025."

Document background
The Collateral Assignment Agreement is a crucial security document used in the United Arab Emirates when a party (assignor) needs to provide security over specific assets or rights to secure their obligations to another party (assignee). This document is commonly used in financing transactions, particularly in corporate lending, project finance, and asset-based financing. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code), UAE Federal Law No. 18 of 1993 (Commercial Code), and other relevant regulations. It typically includes detailed descriptions of the collateral, perfection requirements, enforcement mechanisms, and the parties' respective rights and obligations. The document is particularly important in the UAE context due to specific local law requirements for creating and enforcing security interests, including registration requirements with relevant authorities and compliance with local enforcement procedures.
Suggested Sections

1. Parties: Identification of the Assignor, Assignee, and any other relevant parties

2. Background: Context of the assignment, reference to underlying obligations, and purpose of the security

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

4. Assignment: Core provisions detailing the assignment of the collateral and creation of the security interest

5. Representations and Warranties: Assignor's declarations regarding ownership, authority, and status of the collateral

6. Covenants: Ongoing obligations of the Assignor regarding the collateral and maintenance of the security

7. Perfection Requirements: Steps required to perfect the security interest under UAE law

8. Rights and Obligations: Detailed rights of the Assignee and obligations of the Assignor

9. Events of Default: Circumstances constituting default and triggering enforcement rights

10. Enforcement: Mechanisms and procedures for enforcing the security interest

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

12. Notices: Communication procedures between parties

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, and counterparts

Optional Sections

1. Security Agent Provisions: Required when a security agent is appointed to hold the security on behalf of multiple secured parties

2. Islamic Finance Provisions: Required when the agreement needs to be Shariah-compliant

3. Further Assurance: Additional provisions for complex collateral requiring specific actions for perfection

4. Power of Attorney: Optional irrevocable power of attorney provisions for enforcement purposes

5. Registration Requirements: Specific provisions for registrable collateral such as real estate or vehicles

6. Insurance: Required when the collateral needs to be insured

7. Currency Provisions: Required when dealing with foreign currency or cross-border transactions

Suggested Schedules

1. Schedule 1 - Description of Collateral: Detailed description and identification of the assigned collateral

2. Schedule 2 - Form of Notice: Template notices to third parties regarding the assignment

3. Schedule 3 - Perfection Requirements: Specific steps and documents required for perfection

4. Schedule 4 - Existing Security Interests: List of any existing security interests affecting the collateral

5. Schedule 5 - Required Consents: List of required third-party consents and approvals

6. Appendix A - Form of Transfer Documents: Template documents for transferring or registering the security interest

7. Appendix B - Power of Attorney: Form of power of attorney if required

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

Relevant legal definitions





































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing & Industrial

Energy & Natural Resources

Healthcare

Technology & Communications

Transportation & Logistics

Retail & Consumer Goods

Infrastructure

Agriculture

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit

Commercial

Operations

Project Finance

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Security Trustee

Loan Officer

Credit Manager

Risk Manager

Compliance Officer

Transaction Manager

Project Finance Manager

Treasury Manager

Corporate Secretary

Commercial Director

Asset 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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