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Credit Assignment Agreement Template for Nigeria

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Key Requirements PROMPT example:

Credit Assignment Agreement

"I need a Credit Assignment Agreement under Nigerian law for my manufacturing company to assign receivables worth ₦10 million to ABC Bank Limited, with the assignment to take effect from March 1, 2025."

Document background
A Credit Assignment Agreement is essential in Nigerian business transactions where one party wishes to transfer its credit rights to another party. This document is commonly used in debt restructuring, portfolio sales, or business reorganizations within Nigeria's jurisdiction. The agreement must comply with Nigerian financial regulations, including the Central Bank of Nigeria Act 2007 and relevant banking laws. It typically includes detailed information about the assigned credits, consideration, warranties, and specific steps required for perfection under Nigerian law. The document is crucial for financial institutions, businesses, and individuals engaging in credit transfers, ensuring legal protection and regulatory compliance while facilitating efficient credit market operations in Nigeria.
Suggested Sections

1. Parties: Identification of Assignor and Assignee with full legal names and addresses

2. Background: Context of the original credit arrangement and purpose of the assignment

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Assignment: Core provision detailing the assignment of rights, effective date, and scope

5. Consideration: Details of payment or other consideration for the assignment

6. Perfection of Assignment: Steps required to perfect the assignment under Nigerian law

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

8. Further Assurance: Obligation to execute further documents and take additional steps if needed

9. Costs and Expenses: Allocation of costs including stamp duty and registration fees

10. Notices: Process for serving notices between parties

11. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction

Optional Sections

1. Security Arrangements: Include when the assigned credit is secured by collateral

2. Regulatory Compliance: Include when specific regulatory approvals are required

3. Multiple Assignors/Assignees: Include when there are multiple parties on either side

4. Continuing Obligations: Include when parties have ongoing responsibilities post-assignment

5. Conditions Precedent: Include when assignment is subject to fulfillment of specific conditions

6. Tax Provisions: Include when specific tax implications need to be addressed

7. Confidentiality: Include when sensitive commercial information is involved

8. Power of Attorney: Include when Assignee needs authority to act in Assignor's name

Suggested Schedules

1. Schedule 1 - Details of Assigned Credits: Comprehensive list and details of credits being assigned

2. Schedule 2 - Form of Notice to Debtors: Template for notifying debtors of the assignment

3. Schedule 3 - Copy of Original Credit Agreement: Copy of the agreement creating the assigned rights

4. Schedule 4 - Required Consents: List of required third-party or regulatory consents

5. Schedule 5 - Transfer Documentation: Forms and documents required for perfecting the transfer

6. Appendix A - Payment Details: Bank account and payment instruction details

7. Appendix B - Security Documents: Copies of relevant security documents if applicable

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

Manufacturing

Retail

Construction

Oil and Gas

Telecommunications

Agriculture

Real Estate

Consumer Goods

Healthcare

Education

Relevant Teams

Legal

Finance

Treasury

Credit Management

Risk Management

Compliance

Accounts Receivable

Corporate Affairs

Business Development

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Credit Manager

Risk Manager

Treasury Manager

Accounts Receivable Manager

Corporate Lawyer

Compliance Officer

Financial Controller

Business Development Manager

Contract Administrator

Portfolio Manager

Debt Collection 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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