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Promissory Note Transfer Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Promissory Note Transfer Agreement

I need a Promissory Note Transfer Agreement for transferring a commercial promissory note valued at AED 500,000 from my trading company to a financial institution, with the transfer to be completed by March 15, 2025.

Document background
The Promissory Note Transfer Agreement is a crucial document used in UAE commercial transactions when a holder of a promissory note wishes to transfer their rights to another party. This agreement is particularly important in the UAE business environment, where promissory notes are commonly used in commercial transactions and must comply with the UAE Commercial Transactions Law (Federal Law No. 18 of 1993). The document is essential when businesses need to transfer or assign promissory notes as part of debt restructuring, financing arrangements, or business transactions. It includes comprehensive details about the promissory note being transferred, the terms of transfer, consideration, and necessary warranties, while ensuring compliance with UAE legal requirements for negotiable instruments.
Suggested Sections

1. Parties: Identification of the Transferor (current holder of the promissory note) and Transferee (recipient of the promissory note), including full legal names and addresses

2. Background: Context of the transfer, including details about the original promissory note's issuance and current ownership

3. Definitions: Key terms used in the agreement, including 'Promissory Note', 'Transfer Date', 'Consideration', and other relevant terms

4. Transfer and Assignment: Core provision detailing the transfer of rights and title to the promissory note from Transferor to Transferee

5. Consideration: Details of the payment or other consideration for the transfer of the promissory note

6. Representations and Warranties: Transferor's warranties regarding ownership, validity, and enforceability of the promissory note

7. Delivery and Documentation: Requirements for physical delivery of the promissory note and supporting documentation

8. Governing Law and Jurisdiction: Specification of UAE law as governing law and designation of competent courts

9. Notices: Process and requirements for formal communications between parties

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Further Assurance: Additional commitments to take necessary actions to perfect the transfer, used when regulatory approvals or additional documentation might be needed

2. Recourse Rights: Optional provisions specifying whether the transfer is with or without recourse to the Transferor

3. Tax Provisions: Include when the transfer has specific tax implications that need to be addressed

4. Confidentiality: Include when parties wish to keep the terms of transfer confidential

5. Anti-Money Laundering Compliance: Include when the transfer involves significant sums or when parties are subject to specific regulatory requirements

Suggested Schedules

1. Schedule 1 - Promissory Note Details: Copy or details of the original promissory note, including issue date, maturity date, face value, and payment terms

2. Schedule 2 - Form of Transfer Endorsement: Prescribed format for the endorsement to be made on the promissory note

3. Schedule 3 - Supporting Documents: List of all supporting documents evidencing the chain of title and validity of the promissory note

4. Appendix A - Payment Details: Bank account and payment instruction details for the transfer consideration

5. Appendix B - Required Notices: Forms of any required notices to be given to the original issuer or other parties

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

Commercial Trading

Manufacturing

Import/Export

Real Estate

Construction

Professional Services

Investment & Securities

Industrial

Retail

Relevant Teams

Legal

Finance

Treasury

Credit Control

Compliance

Risk Management

Commercial Operations

Corporate Finance

Accounts Receivable

Business Development

Relevant Roles

Chief Financial Officer

Finance Manager

Treasury Manager

Legal Counsel

Corporate Lawyer

Commercial Director

Credit Manager

Financial Controller

Accounts Receivable Manager

Risk Manager

Compliance Officer

Business Development Manager

Contract 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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