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Loan Assignment Agreement for Australia

Loan Assignment Agreement Template for Australia

This document is an Australian law-governed agreement that facilitates the transfer of rights and obligations under a loan from one lender to another. It encompasses comprehensive provisions for the assignment of the loan, including the transfer of associated security interests, warranties about the loan's status, and mechanisms for completing the transfer. The agreement ensures compliance with Australian financial services laws, including the Personal Property Securities Act 2009 (Cth) and relevant state-based property and securities legislation. It includes provisions for notice to the borrower, treatment of outstanding amounts, and ongoing administrative arrangements.

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Loan Assignment Agreement

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What is a Loan Assignment Agreement?

A Loan Assignment Agreement is a crucial document used in Australian financial markets when a lender wishes to transfer its rights and obligations under a loan agreement to a new lender. This transfer might occur for various reasons, including portfolio management, regulatory requirements, or strategic business decisions. The agreement must comply with Australian federal and state legislation, including the Personal Property Securities Act 2009 (Cth) and relevant state property laws. It typically includes details of the loan being assigned, purchase price, completion mechanics, representations and warranties, and provisions for the transfer of any associated security interests. The document is particularly important in maintaining proper documentation of loan transfers and ensuring the new lender has enforceable rights against the borrower.

What sections should be included in a Loan Assignment Agreement?

1. Parties: Identifies the assignor (current lender), assignee (new lender), and borrower (if party to the agreement)

2. Background: Explains the context of the original loan and the intention to assign the loan

3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules

4. Assignment: Core provision detailing the assignment of rights, obligations and benefits under the loan

5. Purchase Price and Payment: Specifies the consideration for the assignment and payment terms

6. Completion: Details the completion process, timing, and deliverables

7. Representations and Warranties: Statements of fact and assurances from the assignor regarding the loan and their right to assign

8. Further Assurance: Obligations to execute further documents and take additional steps if needed

9. Notices: Specifies how formal notices under the agreement must be given

10. Governing Law and Jurisdiction: Specifies that Australian law governs and sets jurisdiction for disputes

11. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Loan Assignment Agreement?

1. Security Assignment: Required if any security interests are being transferred with the loan

2. Regulatory Compliance: Required for regulated loans, including consumer credit provisions

3. Tax Provisions: Detailed tax implications and responsibilities, particularly for large commercial loans

4. Confidentiality: Detailed confidentiality obligations beyond standard provisions

5. Third Party Consents: Required if the original loan agreement requires consent for assignment

6. Costs and Expenses: Detailed allocation of transaction costs, particularly for complex assignments

7. Power of Attorney: Grants power to assignee to enforce rights in their own name

8. Guarantor Provisions: Required if the original loan includes guarantees that need to be addressed

What schedules should be included in a Loan Assignment Agreement?

1. Loan Details: Details of the loan being assigned including amount, interest rate, maturity date

2. Loan Documents: List of all relevant loan documents being assigned

3. Security Details: Details of any security interests being transferred

4. Form of Notice to Borrower: Template notice informing borrower of the assignment

5. Completion Checklist: List of documents and actions required for completion

6. Outstanding Amounts: Statement of amounts outstanding under the loan as at assignment date

7. Required Consents: Copies or details of third party consents required

8. Transfer Documents: Forms and documents required to register or perfect the transfer

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Loan Agreement

Sector

Cost

Free to use
Relevant legal definitions

































Clauses






























Relevant Industries

Banking & Financial Services

Commercial Real Estate

Corporate Finance

Investment Management

Private Equity

Asset Management

Insurance

Infrastructure

Mining & Resources

Agriculture

Commercial Property

Healthcare

Manufacturing

Retail

Relevant Teams

Legal

Finance

Credit

Risk Management

Compliance

Treasury

Investment

Commercial Banking

Portfolio Management

Transaction Management

Asset Management

Operations

Loan Administration

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Loan Officer

Transaction Manager

Portfolio Manager

Risk Manager

Compliance Officer

Chief Financial Officer

Treasury Manager

Investment Manager

Asset Manager

Commercial Banking Officer

Credit Analyst

Legal Operations 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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