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Assignment Of Proceeds Agreement for Philippines

Assignment Of Proceeds Agreement Template for Philippines

This document, governed by Philippine law, establishes a legally binding arrangement whereby one party (the Assignor) transfers their rights to receive certain proceeds, payments, or receivables to another party (the Assignee). The agreement complies with the requirements of the Philippine Civil Code and relevant financial regulations, detailing the terms of the assignment, payment mechanisms, representations and warranties, and enforcement rights. It includes provisions for notice to the underlying debtor, payment instructions, and remedies in case of default, all structured within the Philippine legal framework.

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What is a Assignment Of Proceeds Agreement?

The Assignment Of Proceeds Agreement is a crucial document in Philippine commercial and financial transactions, used when a party wishes to transfer its rights to receive future payments or proceeds to another party. This arrangement is common in project financing, securitization, debt arrangements, and various commercial transactions where payment rights need to be transferred. The agreement must comply with Philippine civil law requirements for valid assignments and typically includes detailed provisions on the assigned proceeds, payment mechanisms, and parties' rights and obligations. It's particularly relevant in scenarios involving infrastructure projects, loan facilities, or long-term commercial contracts where future payment streams are being monetized or used as security. The document needs to address specific Philippine law requirements regarding notice, registration (where applicable), and enforcement.

What sections should be included in a Assignment Of Proceeds Agreement?

1. Parties: Identifies the Assignor, Assignee, and any other relevant parties (such as the Debtor/Obligor)

2. Background: Explains the context of the assignment, including reference to the underlying contract generating the proceeds

3. Definitions: Defines key terms used throughout the agreement, including 'Proceeds', 'Underlying Contract', and 'Assignment Date'

4. Assignment: Core provision detailing the assignment of proceeds, specifically describing what is being assigned and the effective date

5. Consideration: States the consideration being paid or given for the assignment

6. Payment Mechanisms: Details how the assigned proceeds will be paid to the Assignee, including payment instructions and timing

7. Representations and Warranties: Assignor's representations regarding ownership, right to assign, and absence of encumbrances on the proceeds

8. Covenants: Ongoing obligations of the Assignor, including cooperation in securing payments and maintaining underlying contracts

9. Notice Requirements: Procedures for notifying the Debtor/Obligor and other relevant parties of the assignment

10. Events of Default: Circumstances constituting default and consequences thereof

11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for disputes

12. Miscellaneous: Standard boilerplate provisions including amendments, severability, and entire agreement

What sections are optional to include in a Assignment Of Proceeds Agreement?

1. Security Provisions: Used when additional security arrangements are required to support the assignment

2. Step-In Rights: Included when the Assignee needs rights to directly enforce or manage the underlying contract

3. Trust Arrangements: Required when proceeds need to be held in trust before transfer to the Assignee

4. Tax Provisions: Detailed tax provisions when assignment has significant tax implications or cross-border elements

5. Insurance: Required when insurance coverage is relevant to the assigned proceeds

6. Registration Requirements: Included when the assignment needs to be registered with particular authorities

7. Conditions Precedent: Used when the assignment is contingent on certain conditions being met

What schedules should be included in a Assignment Of Proceeds Agreement?

1. Schedule 1 - Details of Underlying Contract: Copy or key details of the contract generating the proceeds

2. Schedule 2 - Proceeds Description: Detailed description and calculation of the proceeds being assigned

3. Schedule 3 - Payment Instructions: Bank account details and specific payment procedures

4. Schedule 4 - Form of Notice: Template notice to be sent to Debtor/Obligor regarding the assignment

5. Schedule 5 - Conditions Precedent: List of any conditions that must be satisfied before assignment becomes effective

6. Appendix A - Required Authorizations: List of required governmental or regulatory approvals

7. Appendix B - Security Documents: Copies or forms of any related security documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions































Clauses



























Relevant Industries

Banking and Financial Services

Infrastructure and Construction

Energy and Utilities

Real Estate and Property Development

Manufacturing

Telecommunications

Mining and Natural Resources

Agriculture and Agribusiness

Healthcare

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Credit and Collections

Risk Management

Commercial Operations

Compliance

Corporate Secretariat

Project Finance

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Contract Manager

Project Finance Manager

Credit Manager

Risk Manager

Commercial Director

Business Development Manager

Accounts Receivable Manager

Company Secretary

Compliance Officer

Financial Controller

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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