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Debt Transfer Agreement
"I need a Debt Transfer Agreement under UAE law for transferring a corporate debt of AED 5 million from our subsidiary to our parent company, with the transfer to be completed by March 2025; the agreement needs to account for multiple existing creditors and current security arrangements."
1. Parties: Identification of all parties: the original debtor (transferor), the new debtor (transferee), and the creditor
2. Background: Context of the original debt and the reason for the transfer
3. Definitions: Definitions of key terms used in the agreement
4. Transfer of Debt: Core provisions detailing the debt being transferred and the terms of transfer
5. Consideration: Details of any consideration paid between the original debtor and new debtor
6. Representations and Warranties: Statements of fact and assurances from all parties regarding their capacity and the debt
7. Obligations of the Parties: Specific duties and responsibilities of each party before, during, and after the transfer
8. Effective Date and Conditions Precedent: When the transfer becomes effective and any conditions that must be met
9. Notices: How formal communications between parties should be made
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
11. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Security Arrangements: Required when existing security needs to be transferred or new security is being provided
2. Sharia Compliance: Required when the agreement needs explicit confirmation of compliance with Sharia principles
3. Regulatory Compliance: Required when the transfer involves regulated entities or requires regulatory approvals
4. Tax Provisions: Required when there are specific tax implications that need to be addressed
5. Novation Provisions: Required when the transfer involves a complete novation rather than just a debt transfer
6. Third Party Consents: Required when the transfer requires approval from parties not directly involved in the transfer
7. Currency Provisions: Required when the debt transfer involves multiple currencies
1. Schedule 1 - Details of the Original Debt: Detailed description of the debt being transferred, including amount, interest, and payment terms
2. Schedule 2 - Payment Schedule: Schedule of payments to be made by the new debtor
3. Schedule 3 - Security Details: Details of any security arrangements being transferred or created
4. Schedule 4 - Form of Notice to Creditor: Template for formal notification to the creditor of the transfer
5. Schedule 5 - Conditions Precedent Documents: List of documents required before the transfer becomes effective
6. Appendix A - Related Agreements: Copies or details of any related agreements referenced in the main agreement
7. Appendix B - Corporate Authorizations: Copies of relevant corporate approvals and authorizations
Authors
Banking & Financial Services
Real Estate
Construction
Manufacturing
Trading & Commerce
Healthcare
Hospitality
Energy & Resources
Technology
Professional Services
Investment & Private Equity
Insurance
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretariat
Credit Control
Corporate Finance
Business Development
Mergers & Acquisitions
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Finance Manager
Treasury Manager
Risk Manager
Compliance Officer
Company Secretary
Credit Manager
Debt Restructuring Specialist
Corporate Finance Manager
Financial Controller
Legal Director
Business Development Manager
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