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Assignment Of Payment Agreement
"I need an Assignment of Payment Agreement under Hong Kong law for my manufacturing company to assign $2.5M in receivables from our largest customer to a factoring company, with completion planned for March 15, 2025."
1. Parties: Identifies and defines the Assignor, Assignee, and any other relevant parties such as the Original Debtor
2. Background: Explains the context of the assignment, including the original agreement giving rise to the payment rights
3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement
4. Assignment: Core clause that effectuates the transfer of payment rights from Assignor to Assignee
5. Consideration: Specifies the payment or other consideration for the assignment
6. Representations and Warranties: Assignor's warranties regarding ownership, right to assign, and status of the payment rights
7. Assignor's Obligations: Ongoing obligations of the Assignor, including cooperation and documentation requirements
8. Notice Requirements: Procedures for notifying the debtor and other relevant parties of the assignment
9. Further Assurance: Obligations to execute additional documents or take actions to perfect the assignment
10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes
1. Security Interest: Required if the assignment is being given as security rather than an absolute assignment
2. Regulatory Compliance: Required if the assignment involves regulated activities or entities
3. Tax Provisions: Include when there are specific tax implications or arrangements between the parties
4. Confidentiality: Required when sensitive commercial information is involved
5. Anti-Assignment Provisions: Include when addressing or overriding existing anti-assignment clauses
6. Power of Attorney: Include when Assignee needs power to act in Assignor's name
7. Set-off Rights: Include when parties want to preserve or waive set-off rights
8. Costs and Expenses: Include when there's a need to allocate transaction costs
1. Schedule 1 - Details of Assigned Payments: Detailed description of the payment rights being assigned, including amounts, dates, and payment terms
2. Schedule 2 - Form of Notice to Debtor: Template notice to be sent to the debtor informing them of the assignment
3. Schedule 3 - Original Agreement: Copy or details of the agreement giving rise to the payment rights
4. Schedule 4 - Conditions Precedent: List of any conditions that must be satisfied before the assignment becomes effective
5. Schedule 5 - Payment Instructions: Details of the bank account and payment procedures for the assigned payments
Authors
Banking and Financial Services
Commercial Real Estate
Construction
Manufacturing
Trading and Commerce
Professional Services
Infrastructure
Healthcare
Technology
Telecommunications
Legal
Finance
Treasury
Credit Control
Accounts Receivable
Risk Management
Corporate Finance
Commercial Operations
Company Secretarial
Compliance
Chief Financial Officer
Finance Director
Legal Counsel
Commercial Director
Treasury Manager
Credit Manager
Accounts Receivable Manager
Contract Manager
Risk Manager
Company Secretary
Financial Controller
Business Development Director
Corporate Finance Manager
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