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Deed Of Assignment Of Receivables Template for India

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Key Requirements PROMPT example:

Deed Of Assignment Of Receivables

"I need a Deed of Assignment of Receivables under Indian law for my manufacturing company to assign trade receivables worth INR 50 million to ABC Bank Limited as security for a working capital facility, with the assignment to be effective from March 1, 2025."

Document background
The Deed of Assignment of Receivables is a crucial instrument in Indian commercial practice, commonly used in various financial transactions including factoring, securitization, and debt financing arrangements. This document is essential when a business needs to transfer its accounts receivable, whether for immediate liquidity, security for financing, or as part of a larger financial transaction. The deed must comply with Indian legal requirements, particularly the Transfer of Property Act 1882 and relevant state stamp duty laws. It typically includes detailed schedules of the receivables being assigned, mechanisms for perfecting the assignment, and provisions for notification to debtors. The document becomes particularly important in scenarios involving debt factoring, trade finance, and structured finance transactions, where clear documentation of the transfer of receivables is crucial for legal certainty and enforcement.
Suggested Sections

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

2. Background: Context of the assignment, description of the receivables, and the commercial relationship giving rise to them

3. Definitions and Interpretation: Definitions of key terms used in the deed and rules of interpretation

4. Assignment: Core provision effecting the transfer of receivables from Assignor to Assignee

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

6. Completion: Timing and mechanics of the assignment completion

7. Representations and Warranties: Assignor's confirmations regarding ownership, right to assign, and status of receivables

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

9. Notices: Process for serving notices to debtors and communications between parties

10. Governing Law and Jurisdiction: Confirmation of Indian law as governing law and jurisdiction for disputes

11. Execution: Execution blocks with requirements for deed execution under Indian law

Optional Sections

1. Security Provisions: Required if the assignment is by way of security rather than absolute assignment

2. Recourse Provisions: Include if the assignment is with recourse to the Assignor

3. Collection Arrangements: Include if specific arrangements for collection of receivables are needed

4. Power of Attorney: Include if Assignee is granted power to directly collect or manage receivables

5. Regulatory Compliance: Required if assignment falls under specific regulatory frameworks like SARFAESI

6. Tax Indemnity: Include if specific tax implications need to be addressed

7. Confidentiality: Include if sensitive commercial information is involved

8. Assignment Restrictions: Include if there are restrictions on further assignment by the Assignee

Suggested Schedules

1. Schedule 1 - Details of Receivables: Detailed list and description of all receivables being assigned

2. Schedule 2 - Form of Notice to Debtors: Template notice to be sent to debtors informing them of the assignment

3. Schedule 3 - Completion Requirements: List of documents and actions required for completion

4. Schedule 4 - Existing Security Interests: Details of any existing security interests or encumbrances over the receivables

5. Schedule 5 - Payment Details: Bank account and payment mechanism details

6. Appendix A - Copy of Underlying Contracts: Copies of the contracts giving rise to the receivables

7. Appendix B - Power of Attorney: Form of power of attorney if applicable

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

Manufacturing

Trading and Distribution

Infrastructure

Real Estate

Healthcare

Information Technology

Retail

Telecommunications

Energy and Utilities

Construction

Relevant Teams

Legal

Finance

Treasury

Accounts Receivable

Credit Control

Risk Management

Commercial

Company Secretarial

Business Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Accounts Receivable Manager

Credit Controller

Legal Counsel

Company Secretary

Commercial Director

Risk Manager

Financial Controller

Business Development Manager

Contract 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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