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Assignment Of Proceeds Agreement for Belgium

Assignment Of Proceeds Agreement Template for Belgium

A Belgian law-governed Assignment of Proceeds Agreement is a legal document that facilitates the transfer of rights to receive future payments or receivables from one party (the Assignor) to another (the Assignee). The agreement must comply with Belgian Civil Code requirements, particularly Articles 1689-1701, regarding the transfer of claims and receivables. It includes detailed provisions for the identification of assigned proceeds, perfection requirements, notification procedures, and payment mechanics. The document is structured to ensure enforceability under Belgian law while providing clarity on the parties' rights and obligations throughout the assignment process.

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What is a Assignment Of Proceeds Agreement?

An Assignment Of Proceeds Agreement is commonly used in commercial and financial transactions where a party wishes to transfer its rights to receive future payments or income streams to another party. Under Belgian law, such assignments must comply with specific requirements of the Belgian Civil Code, particularly regarding the identification of assigned rights and notification procedures. This document is typically used in project finance, securitization, or general commercial contexts where companies need to monetize future receivables or use them as security. The agreement includes essential details about the assigned proceeds, payment mechanics, and perfection requirements, ensuring that the assignment is valid and enforceable under Belgian law. It may be used as a standalone document or as part of a larger financing arrangement.

What sections should be included in a Assignment Of Proceeds Agreement?

1. Parties: Identifies the Assignor, Assignee, and any other relevant parties (such as the Original Debtor if applicable)

2. Background: Sets out the context of the assignment, including reference to the underlying transaction generating the proceeds

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation principles

4. Assignment: Core section detailing the assignment of proceeds, including the scope and effective date

5. Consideration: Specifies any payment or other consideration for the assignment

6. Representations and Warranties: Assignor's confirmations regarding their right to assign and the status of the proceeds

7. Perfection Requirements: Steps required to perfect the assignment under Belgian law, including notification requirements

8. Payment Mechanics: Details of how assigned proceeds will be paid and handled

9. Covenants: Ongoing obligations of the parties, particularly the Assignor's duties regarding the proceeds

10. Events of Default: Circumstances constituting default and consequences

11. Governing Law and Jurisdiction: Confirms Belgian law as governing law and specifies jurisdiction for disputes

What sections are optional to include in a Assignment Of Proceeds Agreement?

1. Security Interest: Required if the assignment is intended as security rather than an absolute assignment

2. Tax Provisions: Include when there are specific tax implications or allocations to address

3. Currency Provisions: Required when assigned proceeds are in multiple currencies or currency conversion is needed

4. Further Assurance: Optional section for additional actions parties may need to take to give effect to the assignment

5. Power of Attorney: Include when the Assignee needs power to act in Assignor's name

6. Set-off Rights: Include when set-off rights need to be addressed explicitly

7. Bank Account Details: Required when specific payment routing is needed (though often included in a schedule instead)

What schedules should be included in a Assignment Of Proceeds Agreement?

1. Schedule 1 - Details of Assigned Proceeds: Detailed description and identification of the proceeds being assigned

2. Schedule 2 - Form of Notice: Template notice to be sent to relevant parties regarding the assignment

3. Schedule 3 - Payment Details: Bank account and payment routing information

4. Schedule 4 - Underlying Agreements: List and/or copies of agreements generating the assigned proceeds

5. Schedule 5 - Conditions Precedent: List of any conditions that must be satisfied before the assignment becomes effective

6. Appendix A - Calculation Methods: If relevant, methods for calculating variable proceeds or payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Belgium

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions


































Clauses





























Relevant Industries

Banking and Finance

Infrastructure and Construction

Energy and Resources

Real Estate

Project Finance

Trade Finance

Manufacturing

Technology and Software

Professional Services

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Commercial

Risk Management

Compliance

Corporate Finance

Project Finance

Business Development

Operations

Relevant Roles

Legal Counsel

Finance Director

Treasury Manager

Contract Manager

Project Finance Manager

Commercial Director

Chief Financial Officer

Risk Manager

Corporate Finance Manager

Compliance Officer

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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