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Assignment Of Payment Agreement Template for Germany

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Key Requirements PROMPT example:

Assignment Of Payment Agreement

"I need an Assignment of Payment Agreement under German law to transfer €500,000 in quarterly payments due from our manufacturing contract to a factoring company, with the first payment starting March 2025 and including provisions for notification to the debtor."

Document background
The Assignment Of Payment Agreement is a crucial document used in German business and financial transactions when one party wishes to transfer its right to receive payments to another party. This type of agreement is commonly used in factoring arrangements, security packages for financing transactions, or business restructuring. The document must comply with German law requirements, particularly the provisions of the German Civil Code (BGB) regarding assignments (Abtretung). It typically includes detailed information about the assigned payment rights, mechanisms for notification to the debtor, and provisions ensuring the validity of the transfer. The agreement is particularly important in commercial financing contexts and must address specific German law requirements regarding form, notice, and enforceability.
Suggested Sections

1. Parties: Identification of the Assignor and Assignee with full legal names and addresses

2. Background: Context of the assignment, including the origin of the payment rights and the relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement, including 'Assigned Rights', 'Payment Date', 'Underlying Agreement', etc.

4. Assignment: Core provision detailing the transfer of payment rights from Assignor to Assignee

5. Consideration: Details of any payment or other consideration for the assignment

6. Representations and Warranties: Assignor's confirmations regarding ownership, right to assign, and status of the assigned payment rights

7. Notification and Payment Instructions: Process for notifying the debtor and instructions for future payments

8. Further Assurance: Obligations to execute additional documents or take actions to perfect the assignment

9. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

Optional Sections

1. Security Interest: Required if the assignment is being made as security for another obligation

2. Regulatory Compliance: Required if the assignment involves regulated payment services or banking transactions

3. Data Protection: Required if personal data is involved in the assigned payments

4. Anti-Money Laundering: Required for high-value assignments or when parties are subject to AML regulations

5. Partial Assignment: Required if only a portion of the payment rights are being assigned

6. Recourse Provisions: Optional section defining whether the assignment is with or without recourse to the Assignor

7. Interest and Costs: Required if there are provisions for interest on late payments or cost allocation

Suggested Schedules

1. Schedule 1 - Details of Assigned Payment Rights: Detailed description of the payment rights being assigned, including amounts, payment dates, and payment terms

2. Schedule 2 - Copy of Underlying Agreement: Copy of the agreement giving rise to the payment rights

3. Schedule 3 - Form of Notice to Debtor: Template for the notification to be sent to the debtor regarding the assignment

4. Schedule 4 - Payment Instructions: Detailed banking and payment routing instructions for future payments

5. Appendix A - Powers of Attorney: If applicable, powers of attorney authorizing the signing of the agreement

6. Appendix B - Corporate Authorizations: Required corporate resolutions or authorizations for the assignment

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































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Relevant Industries

Financial Services

Banking

Insurance

Manufacturing

Construction

Real Estate

Professional Services

Healthcare

Energy

Infrastructure

Technology

Telecommunications

Trade and Commerce

Relevant Teams

Legal

Finance

Treasury

Accounts Receivable

Credit Control

Compliance

Risk Management

Commercial Operations

Contract Administration

Banking Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Accounts Receivable Manager

Credit Controller

Legal Counsel

Corporate Lawyer

Contract Manager

Financial Controller

Risk Manager

Commercial Director

Business Development Manager

Compliance Officer

Banking Relationship Manager

Finance Operations Manager

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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