Document background
The Assignment Of Revenue Agreement is a crucial financial instrument used in South African business transactions when an entity wishes to monetize its future revenue streams or use them as security for financing. This document is particularly relevant in project finance, structured finance, and securitization transactions where future income streams need to be legally transferred or secured. It must comply with South African legislative requirements, including the Companies Act, Income Tax Act, and relevant financial sector regulations. The agreement typically includes detailed provisions on revenue identification, payment mechanics, representations and warranties, and security arrangements. It's commonly used in infrastructure projects, property developments, and various commercial ventures where future revenue streams have significant value and can be effectively monetized or used as security.
