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Credit Assignment Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Credit Assignment Agreement

"I need a Credit Assignment Agreement for transferring a corporate loan portfolio worth AED 5 million from our investment company to a local UAE bank, with completion scheduled for March 15, 2025, including Islamic finance compliance provisions."

Document background
The Credit Assignment Agreement is a vital instrument in UAE commercial and financial transactions, used when one party wishes to transfer its credit rights to another party. This document is particularly relevant in the UAE's dynamic financial market, where credit assignments are common in both conventional and Islamic finance structures. The agreement must comply with the UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), while also considering Sharia principles where applicable. It is commonly used in debt trading, portfolio transfers, restructuring scenarios, and project finance arrangements. The document includes essential details about the assigned credit, parties' obligations, warranties, and completion requirements, while ensuring proper notification to the debtor as required under UAE law.
Suggested Sections

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

2. Background: Context of the original credit arrangement and the purpose of the assignment

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Assignment: Core provisions detailing the transfer of rights and obligations from Assignor to Assignee

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

6. Representations and Warranties: Statements of fact and assurances from the Assignor regarding the assigned credit

7. Completion: Conditions precedent and mechanics for completing the assignment

8. Notice and Acknowledgment: Requirements for notifying the debtor and obtaining acknowledgment

9. Further Assurance: Obligations to execute additional documents or take further steps to perfect the assignment

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

Optional Sections

1. Sharia Compliance: Required when the assignment needs to comply with Islamic finance principles

2. Security Transfer: Used when security interests are being transferred along with the credit

3. Registration Requirements: Required when the assignment must be registered with authorities

4. Tax Provisions: Include when there are specific tax implications requiring address

5. Multiple Debtors: Required when the assigned credit involves multiple debtors

6. Partial Assignment: Include when only part of the credit is being assigned

7. Confidentiality: Optional provisions for maintaining confidentiality of the transaction

Suggested Schedules

1. Schedule 1 - Details of Assigned Credit: Detailed description of the credit being assigned including amount, payment terms, and current status

2. Schedule 2 - Original Credit Agreement: Copy or details of the original credit agreement being assigned

3. Schedule 3 - Completion Requirements: List of documents and actions required for completion

4. Schedule 4 - Form of Notice to Debtor: Template for the notice to be sent to the debtor regarding the assignment

5. Schedule 5 - Form of Acknowledgment: Template for the debtor's acknowledgment of the assignment

6. Appendix A - Supporting Documents: Copies of relevant permits, licenses, or other supporting documentation

7. Appendix B - Payment Instructions: Details of bank accounts and payment procedures for the assigned credit

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





























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Relevant Industries

Banking and Financial Services

Commercial Lending

Islamic Finance

Real Estate

Construction

Manufacturing

Trading and Distribution

Investment Services

Insurance

Professional Services

Relevant Teams

Legal

Finance

Compliance

Treasury

Risk Management

Credit Administration

Corporate Banking

Investment Banking

Islamic Banking

Portfolio Management

Transaction Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Credit Manager

Treasury Manager

Risk Manager

Investment Manager

Corporate Lawyer

Financial Controller

Debt Recovery Manager

Portfolio Manager

Islamic Finance Specialist

Transaction Manager

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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