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Debt Transfer Agreement Template for Malaysia

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Key Requirements PROMPT example:

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."

Document background
The Debt Transfer Agreement is a crucial document used in Malaysian business and financial transactions when one party wishes to transfer its debt obligations to another party. This agreement is commonly utilized in corporate restructuring, asset sales, or when a company or individual needs to reorganize their debt obligations. The document must comply with Malaysian law, particularly the Contracts Act 1950, Civil Law Act 1956, and where applicable, the Companies Act 2016. It includes essential details such as the amount of debt being transferred, payment terms, security arrangements, and the rights and obligations of all parties involved. The agreement becomes particularly important in scenarios involving corporate acquisitions, business reorganizations, or debt restructuring exercises, where clear documentation of the transfer of financial obligations is crucial for legal and accounting purposes.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Construction

Manufacturing

Commercial Trading

Retail

Healthcare

Education

Infrastructure

Energy

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Credit Control

Risk Management

Corporate Secretarial

Compliance

Accounts

Corporate Finance

Executive Management

Relevant Roles

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

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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