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Debt Assignment Agreement
"I need a Debt Assignment Agreement under South African law for transferring a corporate loan portfolio worth R50 million from ABC Bank to XYZ Investment Fund, with the transfer to be effective from March 1, 2025, including provisions for multiple debtors and associated security interests."
1. Parties: Identifies the Assignor (current debt holder), Assignee (party receiving the debt), and Debtor
2. Background: Sets out the context of the original debt and the intention to assign it
3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement
4. Assignment: Core clause establishing the transfer of rights from Assignor to Assignee
5. Purchase Price: Specifies the consideration paid for the assignment and payment terms
6. Effective Date: Establishes when the assignment takes effect
7. Warranties and Representations: Assignor's warranties regarding the debt's validity and their right to assign
8. Notice and Communication: Requirements for notifying the Debtor and communication between parties
9. Costs and Taxes: Allocation of transaction costs and tax obligations
10. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement
1. Security: Required when the assigned debt includes any form of security or collateral
2. Conditions Precedent: Include when the assignment is subject to fulfillment of specific conditions
3. Further Assurance: Used when additional documentation or actions may be needed post-assignment
4. Anti-money Laundering Provisions: Required when dealing with regulated financial institutions
5. Confidentiality: Include when sensitive commercial information is involved
6. Partial Assignment: Required when only a portion of the debt is being assigned
7. Regulatory Compliance: Include when the assignment involves regulated entities or activities
1. Schedule 1 - Details of the Debt: Comprehensive details of the debt being assigned including amount, interest, and payment terms
2. Schedule 2 - Original Debt Agreement: Copy or details of the agreement that created the original debt
3. Schedule 3 - Security Documents: Details of any security or collateral associated with the debt
4. Schedule 4 - Payment Details: Bank account and payment information for settling the purchase price
5. Schedule 5 - Form of Notice to Debtor: Template for notifying the debtor of the assignment
6. Appendix A - Supporting Documents: Copies of relevant supporting documentation including statements and correspondence
Authors
Financial Services
Banking
Insurance
Real Estate
Asset Management
Debt Collection
Private Equity
Commercial Lending
Investment Management
Professional Services
Legal
Finance
Treasury
Credit Management
Risk Management
Compliance
Debt Collection
Corporate Finance
Investment
Operations
Chief Financial Officer
Financial Director
Legal Counsel
Debt Collection Manager
Credit Manager
Risk Manager
Portfolio Manager
Treasury Manager
Compliance Officer
Corporate Lawyer
Investment Manager
Asset Manager
Finance Manager
Debt Recovery Specialist
Transaction Manager
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