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Security Assignment Agreement
"I need a Security Assignment Agreement under UAE law for assigning receivables from a Dubai-based trading company to a local bank as security for a AED 10 million facility agreement closing on March 15, 2025, with specific provisions for direct collection rights upon default."
1. Parties: Identifies and defines the Assignor, Assignee, and any other relevant parties to the agreement
2. Background: Sets out the context of the security assignment, including reference to any underlying facility or principal obligations
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement
4. Assignment: Core provision detailing the assignment of rights and creation of security interest
5. Secured Obligations: Defines the obligations being secured by the assignment
6. Representations and Warranties: Assignor's representations regarding ownership, authority, and status of assigned rights
7. Covenants: Ongoing obligations of the Assignor regarding the assigned rights and maintenance of security
8. Perfection Requirements: Steps required to perfect the security interest under UAE law
9. Enforcement: Rights and procedures for enforcing the security interest upon default
10. Power of Attorney: Irrevocable power of attorney granted to the Assignee for security purposes
11. Payments and Receipts: Handling of payments related to assigned rights before and after enforcement
12. Governing Law and Jurisdiction: Specifies UAE law as governing law and jurisdiction for disputes
1. Further Assurance: Additional actions parties may need to take to perfect or maintain security - include if complex assets involved
2. Currency Provisions: Include if assignment involves multiple currencies or cross-border elements
3. Tax Provisions: Include if significant tax implications exist for the security arrangement
4. Third Party Rights: Include if rights of third parties need to be addressed or excluded
5. Notices: Detailed notice provisions - include if complex notification requirements exist
6. Assignment and Transfer: Include if parties want to allow transfer of rights under the security
7. Counterparts: Include if agreement may be executed in multiple counterparts
8. Electronic Execution: Include if electronic execution is contemplated
1. Schedule 1 - Assigned Rights: Detailed description of rights and assets being assigned as security
2. Schedule 2 - Form of Notice: Template notice to be sent to relevant third parties regarding the assignment
3. Schedule 3 - Form of Acknowledgment: Template acknowledgment to be obtained from relevant third parties
4. Schedule 4 - Perfection Requirements: Detailed list of registration and filing requirements under UAE law
5. Schedule 5 - Existing Security: Details of any existing security over the assigned rights
6. Schedule 6 - Payment Details: Bank account and payment mechanism details
7. Appendix A - Related Agreements: Copies or details of underlying agreements related to assigned rights
8. Appendix B - Powers of Attorney: Forms of powers of attorney required under UAE law
Authors
Banking and Financial Services
Real Estate and Construction
Infrastructure Development
Energy and Resources
Trading and Commerce
Manufacturing
Healthcare
Technology and Communications
Professional Services
Transportation and Logistics
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Finance
Project Finance
Commercial
Company Secretarial
Credit
Security Administration
Chief Financial Officer
General Counsel
Legal Director
Finance Director
Treasury Manager
Compliance Officer
Risk Manager
Corporate Finance Manager
Security Trustee
Facility Agent
Project Finance Manager
Commercial Director
Company Secretary
Legal Counsel
Transaction Manager
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