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Deed Of Charge And Assignment Template for India

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Key Requirements PROMPT example:

Deed Of Charge And Assignment

"I need a Deed of Charge and Assignment for creating security over my manufacturing company's assets (including plant, machinery, and receivables) in favor of State Bank of India for a term loan of INR 50 crores, with the security to be effective from March 1, 2025."

Document background
The Deed of Charge and Assignment is a crucial security document used in Indian financing transactions to create and perfect security interests over various assets and rights. It is commonly employed when a borrower needs to provide comprehensive security to lenders as part of a financing arrangement, whether for term loans, working capital facilities, or other credit facilities. The document serves multiple purposes: it creates fixed and floating charges over the borrower's assets, assigns relevant contractual rights, and establishes the framework for security enforcement. The deed must comply with various Indian laws, including the Transfer of Property Act, Registration Act, and Companies Act, particularly regarding registration requirements and enforcement mechanisms. It is essential in both bilateral and syndicated lending structures and can be adapted for different types of assets and security arrangements.
Suggested Sections

1. Parties: Identifies and defines the chargor/assignor, chargee/assignee, and any other relevant parties to the deed

2. Background: Sets out the context of the security creation, including reference to any facility agreements or underlying obligations

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

4. Creation of Charge and Assignment: Core section establishing the security interest, specifying the nature of the charge (fixed/floating) and assignment

5. Secured Obligations: Defines the obligations being secured by the charge and assignment

6. Representations and Warranties: Statements of fact and assurances given by the chargor/assignor regarding their authority and the charged assets

7. Covenants: Ongoing obligations of the chargor/assignor regarding the charged assets and maintenance of security

8. Events of Default: Circumstances that trigger enforcement rights

9. Enforcement: Rights and remedies of the chargee/assignee upon default

10. Power of Attorney: Appointment of the chargee/assignee as attorney for protecting/enforcing security interests

11. Further Assurance: Obligation to execute additional documents or take actions to perfect security

12. Notices: Process for giving notices under the deed

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, counterparts

14. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes

Optional Sections

1. Intercreditor Provisions: Required when multiple creditors are involved, establishing priority and enforcement rights

2. Special Provisions for Immovable Property: Additional provisions required when the charged assets include immovable property

3. Registration Requirements: Specific section on registration obligations when charged assets require special registrations

4. Insurance: Detailed insurance requirements for charged assets where applicable

5. Bank Account Charges: Specific provisions for charges over bank accounts if included

6. Intellectual Property Rights: Special provisions for charging/assigning intellectual property

7. Release and Reassignment: Provisions for releasing security upon discharge of secured obligations

Suggested Schedules

1. Schedule 1 - Charged Assets: Detailed description of all assets subject to the charge and assignment

2. Schedule 2 - Underlying Documents: List and details of facility agreements or other documents creating the secured obligations

3. Schedule 3 - Form of Notice: Template notices to third parties regarding the charge/assignment

4. Schedule 4 - Powers of Attorney: Specific powers granted under the power of attorney

5. Schedule 5 - Properties: Details of any immovable properties included in the security

6. Schedule 6 - Bank Accounts: List of charged bank accounts and their details

7. Schedule 7 - Intellectual Property: Details of any intellectual property rights being charged/assigned

8. Appendix A - Registration Requirements: Checklist of registration requirements for different types of charged assets

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





















































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Relevant Industries

Banking and Financial Services

Real Estate and Construction

Manufacturing

Infrastructure

Technology and Software

Healthcare

Energy and Utilities

Telecommunications

Retail and Consumer Goods

Agriculture and Agribusiness

Mining and Natural Resources

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Corporate Secretarial

Risk Management

Compliance

Credit

Corporate Banking

Transaction Management

Security Administration

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Company Secretary

Corporate Lawyer

Finance Manager

Treasury Manager

Risk Manager

Compliance Officer

Security Trustee

Facility Agent

Credit Manager

Corporate Banking Officer

Legal Director

Transaction 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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