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Security Assignment Agreement
"I need a Security Assignment Agreement under South African law for assigning receivables from my manufacturing company to a bank as security for a new R50 million facility agreement to be signed by March 2025, with the bank acting through a security agent."
1. Parties: Identification of the Assignor, Assignee, and any other relevant parties to the agreement
2. Background: Context of the security assignment, including reference to any underlying obligations or agreements
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Assignment: Core provision detailing the assignment of rights and creation of security interest
5. Secured Obligations: Description of the obligations being secured by the assignment
6. Security Interest: Nature and extent of the security interest being created
7. Representations and Warranties: Assignor's confirmations regarding ownership, authority, and status of assigned rights
8. Perfection Requirements: Steps required to perfect the security interest, including registration requirements
9. Assignor's Obligations: Ongoing obligations of the Assignor regarding the assigned rights
10. Enforcement: Rights and remedies of the Assignee upon default
11. Power of Attorney: Appointment of Assignee as attorney to perfect or enforce the security
12. Notices: Process and requirements for giving notices under the agreement
13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and amendments
1. Security Agent Provisions: Required when security is held through a security agent for multiple beneficiaries
2. Further Assurance: Additional obligations to execute documents or perform actions, particularly relevant for complex assignments
3. Tax Provisions: Include when assignment has significant tax implications or specific tax arrangements
4. Currency Provisions: Required when assignment involves multiple currencies or foreign exchange considerations
5. Amendments to Underlying Documents: Include when assignment requires modifications to underlying agreements
6. Priority Arrangements: Needed when there are multiple security interests or intercreditor arrangements
7. Information Rights: Additional reporting or information requirements, relevant for complex financial arrangements
8. Insurance: Required when assigned rights include insurance policies or requirements
1. Schedule 1 - Assigned Rights: Detailed description of rights, assets, or receivables being assigned
2. Schedule 2 - Form of Notice of Assignment: Template notice to be sent to relevant third parties
3. Schedule 3 - Perfection Requirements: Specific actions required to perfect the security interest
4. Schedule 4 - Existing Security Interests: List of any pre-existing security interests affecting the assigned rights
5. Schedule 5 - Contact Details: Contact information for all parties for notice purposes
6. Appendix A - Related Agreements: Copies or details of underlying agreements relevant to the assignment
7. Appendix B - Corporate Authorizations: Copies of relevant corporate approvals and authorizations
Authors
Banking & Financial Services
Corporate Lending
Asset Finance
Infrastructure & Project Finance
Real Estate
Manufacturing
Mining & Resources
Telecommunications
Energy & Utilities
Healthcare
Agriculture
Trade Finance
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Finance
Commercial
Credit
Operations
Security Administration
Project Finance
Corporate Banking
Legal Counsel
Senior Legal Advisor
Finance Director
Chief Financial Officer
Security Trustee
Facility Agent
Transaction Manager
Corporate Finance Manager
Risk Manager
Compliance Officer
Treasury Manager
Commercial Director
Security Agent
Project Finance Manager
Corporate Banking Manager
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