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Assignment Of Revenue Agreement for South Africa

Assignment Of Revenue Agreement Template for South Africa

A comprehensive legal document governed by South African law that facilitates the transfer of rights to future revenue streams from one party (assignor) to another (assignee). The agreement details the terms and conditions of the assignment, including the scope of assigned revenue, payment mechanisms, representations and warranties, and security arrangements. It incorporates relevant provisions from South African financial sector regulations, tax laws, and security legislation, ensuring compliance with local legal requirements while providing adequate protection for all parties involved.

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Assignment Of Revenue Agreement

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What is a Assignment Of Revenue Agreement?

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.

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

1. Parties: Identifies and provides full details of the assignor and assignee

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

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

5. Consideration: Specifies the payment or other consideration for the assignment

6. Representations and Warranties: Assignor's declarations regarding their right to assign the revenue and other material facts

7. Assignor's Obligations: Ongoing obligations of the assignor regarding the assigned revenue

8. Payment Mechanics: Details of how payments will be processed and transferred to the assignee

9. Duration: Term of the assignment and any renewal provisions

10. Events of Default: Circumstances constituting default and consequences

11. Notices: Communication requirements and contact details

12. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement

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

1. Security: Required when additional security is provided for the assigned revenue

2. Step-In Rights: Included when assignee needs rights to take over revenue collection directly

3. Third Party Consents: Required when assignment requires consent from other parties

4. Tax Provisions: Detailed tax arrangements when complex tax implications exist

5. Foreign Exchange Provisions: Required when revenue is in foreign currency

6. Insurance: Included when specific insurance requirements exist for the assigned revenue

7. Revenue Collection Agent: Required when a third party is appointed to collect revenue

8. Subordination: Needed when the assignment must be ranked against other creditors

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

1. Description of Assigned Revenue: Detailed description of revenue streams being assigned

2. Payment Details: Bank account and payment processing information

3. Form of Notice to Debtors: Template for notifying relevant parties of the assignment

4. Required Consents: List of required third-party consents and their status

5. Security Documents: Copies or details of related security arrangements

6. Existing Encumbrances: List of any existing charges or encumbrances on the revenue

7. Financial Calculations: Details of revenue calculations, projections or payment formulae

8. Supporting Documents: Copies of underlying agreements generating the revenue

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

South Africa

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Banking and Financial Services

Infrastructure and Project Finance

Manufacturing

Real Estate and Property

Energy and Resources

Telecommunications

Healthcare

Retail

Technology

Transportation and Logistics

Construction

Agricultural Business

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Operations

Credit

Business Development

Project Finance

Company Secretariat

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Commercial Director

Treasury Manager

Financial Controller

Risk Manager

Credit Manager

Business Development Director

Project Finance Manager

Structured Finance Manager

Company Secretary

Compliance Officer

Operations Director

Account Manager

Contract Administrator

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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