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Mortgage Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

Mortgage Purchase Agreement

"I need a Mortgage Purchase Agreement for the acquisition of a conventional residential mortgage portfolio valued at RM 50 million, with completion planned for March 2025; the agreement should include specific provisions for ongoing servicing arrangements by the selling bank."

Document background
The Mortgage Purchase Agreement is essential for financial institutions in Malaysia looking to transfer or acquire mortgage portfolios as part of their asset management strategy. This document is particularly relevant in scenarios involving portfolio optimization, risk management, or strategic restructuring of mortgage assets. It must comply with Malaysian banking regulations, including both conventional and Islamic banking requirements under the Financial Services Act 2013 and Islamic Financial Services Act 2013. The agreement typically includes comprehensive details about the mortgage portfolio, valuation mechanisms, representations about the quality of the assets, and specific provisions for the smooth transfer of security interests and related rights. It's commonly used in secondary market transactions and requires careful consideration of both regulatory compliance and practical implementation aspects.
Suggested Sections

1. Parties: Identification of the seller (typically a financial institution) and purchaser, including their registration details and addresses

2. Background: Context of the transaction, including the seller's ownership of the mortgage portfolio and intention to sell

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Sale and Purchase: Core terms of the transaction, including the agreement to sell and purchase the mortgage portfolio

5. Purchase Price: Calculation methodology and payment terms for the mortgage portfolio

6. Conditions Precedent: Prerequisites that must be satisfied before completion

7. Completion: Process and requirements for completing the transaction

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Covenants: Ongoing obligations of both parties

10. Transfer Process: Procedures for transferring the mortgage assets and related documentation

11. Indemnification: Provisions for compensation in case of breach or losses

12. Confidentiality: Obligations regarding confidential information

13. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Islamic Finance Compliance: Required when the mortgage portfolio includes Islamic financing facilities, ensuring Shariah compliance

2. Servicing Arrangements: Needed when the original lender will continue servicing the mortgages post-sale

3. Security Assignment: Required when there is separate security documentation to be assigned

4. Tax Provisions: Detailed tax arrangements when specific tax structures or benefits are part of the transaction

5. Foreign Exchange Provisions: Required when the transaction involves multiple currencies

6. Data Protection: Additional provisions when detailed personal data processing arrangements are needed

7. Regulatory Compliance: Specific provisions when the transaction requires particular regulatory approvals or compliance

Suggested Schedules

1. Schedule 1 - Mortgage Portfolio Details: Detailed list of all mortgages being purchased, including borrower details, property information, and outstanding amounts

2. Schedule 2 - Form of Transfer Documents: Templates of all documents required for transferring the mortgages

3. Schedule 3 - Property Details: Detailed information about the properties securing the mortgages

4. Schedule 4 - Purchase Price Calculation: Detailed methodology and formulae for calculating the purchase price

5. Schedule 5 - Completion Checklist: List of all documents and actions required for completion

6. Schedule 6 - Seller's Power of Attorney: Form of power of attorney for executing transfer documents

7. Appendix A - Due Diligence Findings: Summary of due diligence results and any identified issues

8. Appendix B - Regulatory Approvals: Copies or details of required regulatory approvals

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

Financial Services

Real Estate

Investment Management

Islamic Finance

Property Development

Mortgage Lending

Asset Management

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit Analysis

Islamic Banking

Portfolio Management

Asset Management

Property Finance

Due Diligence

Transaction Management

Relevant Roles

Chief Financial Officer

Legal Counsel

Risk Manager

Portfolio Manager

Compliance Officer

Investment Director

Credit Risk Analyst

Treasury Manager

Islamic Banking Specialist

Asset Manager

Property Finance Manager

Due Diligence Officer

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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