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Debt Assumption Agreement
"I need a Debt Assumption Agreement under Belgian law where my manufacturing company will take over a 鈧2.5M equipment loan from our subsidiary, with the transfer to be completed by March 1, 2025; the original loan is secured by equipment that will remain with the subsidiary."
1. Parties: Identification of the Original Debtor, New Debtor, and Creditor
2. Background: Context of the original debt and reasons for the assumption
3. Definitions: Definitions of key terms used throughout the agreement
4. Assumption of Debt: Core provisions detailing the debt being assumed and mechanism of transfer
5. Consideration: Details of any consideration paid between Original Debtor and New Debtor
6. Consent of Creditor: Express consent of the creditor to the assumption of debt
7. Representations and Warranties: Standard representations from all parties, particularly regarding capacity and authority
8. Original Debtor's Obligations: Ongoing obligations and releases of the Original Debtor
9. New Debtor's Obligations: Specific obligations assumed by the New Debtor
10. Governing Law and Jurisdiction: Confirmation of Belgian law governance and jurisdiction
11. Notices: Process for serving notices between parties
12. Execution: Signature blocks and execution formalities
1. Security Arrangements: Required if the original debt is secured - details transfer or replacement of security
2. Conditions Precedent: Include if the assumption is subject to specific conditions being met
3. Multiple Creditors: Required if there are multiple creditors - specifying their relationships and rights
4. Payment Terms: Include if payment terms differ from the original debt agreement
5. Tax Provisions: Include specific tax provisions if there are significant tax implications
6. Further Assurance: Include if additional documentation or actions may be required post-completion
7. Partial Assumption: Required if only part of the debt is being assumed
8. Step-in Rights: Include if creditor requires right to transfer debt to another party
1. Original Debt Agreement: Copy or details of the original debt agreement being assumed
2. Debt Details: Specific details of the debt including amount, interest, payment schedule
3. Security Documents: If applicable, details of any security arrangements
4. Creditor Consent Form: Formal consent document from creditor(s)
5. Payment Schedule: If payment terms are modified, detailed new payment schedule
6. Corporate Authorizations: Copies of relevant corporate approvals and authorizations
7. Conditions Precedent Checklist: If applicable, list of conditions and their status
Authors
Banking & Financial Services
Real Estate
Construction
Manufacturing
Retail
Healthcare
Energy
Infrastructure
Transportation
Technology
Telecommunications
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Development
Credit Control
Accounting
Corporate Secretariat
Business Development
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Finance Manager
Financial Controller
Legal Counsel
General Counsel
Compliance Officer
Risk Manager
Corporate Secretary
Business Development Director
Restructuring Officer
Credit Manager
Account Manager
Transaction Manager
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