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Debt Transfer Agreement
"I need a Debt Transfer Agreement for transferring a secured corporate debt of RM 5 million from ABC Manufacturing Sdn Bhd to XYZ Industries Sdn Bhd, with United Bank Malaysia as the creditor, including provisions for existing property security and completion by March 2025."
1. Parties: Identifies and defines the Original Debtor, New Debtor, and Creditor
2. Background: Explains the context of the existing debt and the intention to transfer it
3. Definitions: Defines key terms used throughout the agreement
4. Transfer of Debt: Details the mechanism and effective date of the debt transfer
5. Consideration: Specifies any consideration paid for the debt transfer
6. Representations and Warranties: Standard warranties from all parties regarding their capacity and authority
7. Original Debtor's Obligations: Outlines the continuing obligations or release of the original debtor
8. New Debtor's Obligations: Details the new debtor's commitments and payment obligations
9. Creditor's Consent: Documents the creditor's agreement to the transfer
10. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes
11. Notices: Sets out how formal notices should be given between parties
12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Security Arrangements: Required when the original debt is secured and details how existing security will be handled or new security provided
2. Conditions Precedent: Included when the transfer is subject to certain conditions being met first
3. Tax Provisions: Needed when there are specific tax implications or arrangements between the parties
4. Regulatory Compliance: Required when the transfer needs specific regulatory approvals or compliance measures
5. Interest Provisions: Included when there are specific arrangements regarding interest calculation and payment
6. Default and Remedies: Added when parties want to specify particular events of default and corresponding remedies
7. Assignment: Included when parties want to restrict or permit further transfers of the debt
1. Schedule 1 - Details of the Debt: Comprehensive details of the debt being transferred including amount, interest rate, payment terms
2. Schedule 2 - Original Debt Agreement: Copy or details of the original agreement creating the debt
3. Schedule 3 - Payment Schedule: Detailed schedule of payments to be made by the new debtor
4. Schedule 4 - Security Details: If applicable, details of any security arrangements
5. Schedule 5 - Form of Notice: Template for notifying relevant parties of the transfer
6. Appendix A - Required Authorizations: List of any required authorizations or consents
7. Appendix B - Supporting Documents: Any additional documentation evidencing the debt or supporting the transfer
Authors
Banking and Financial Services
Real Estate
Construction
Manufacturing
Commercial Trading
Retail
Healthcare
Education
Infrastructure
Energy
Telecommunications
Legal
Finance
Treasury
Credit Control
Risk Management
Corporate Secretarial
Compliance
Accounts
Corporate Finance
Executive Management
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Financial Controller
Treasury Manager
Credit Manager
Risk Manager
Company Secretary
Accounts Manager
Debt Restructuring Specialist
Corporate Finance Manager
Managing Director
Business Development Manager
Financial Analyst
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