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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."
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
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
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
Banking & Financial Services
Real Estate & Construction
Manufacturing & Industrial
Energy & Natural Resources
Healthcare
Technology & Communications
Transportation & Logistics
Retail & Consumer Goods
Infrastructure
Agriculture
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretariat
Credit
Commercial
Operations
Project Finance
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
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