Debt Assumption Agreement for Malta
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Debt Assumption Agreement
"Need a Debt Assumption Agreement under Maltese law where our subsidiary company (TechStart Ltd) will take over a 鈧2.5M bank loan from our parent company (GlobalTech Solutions plc), with the transfer to be completed by March 2025 and maintaining existing security arrangements."
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1. Parties: Identification of all parties: Original Debtor, Assuming Party, and Creditor, including full legal names and registration details
2. Background: Context of the original debt, relationship between parties, and reasons for the debt assumption
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Debt Assumption: Core provisions detailing the assumption of debt, including amount, terms, and effective date
5. Original Debtor's Obligations: Specifications of the original debtor's continuing obligations or release
6. Assuming Party's Obligations: Detailed obligations of the assuming party, including payment terms and conditions
7. Creditor's Rights and Consents: Rights of the creditor and their consent to the assumption arrangement
8. Representations and Warranties: Standard and specific representations and warranties from all parties
9. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective
10. Notices: Procedures and requirements for formal communications between parties
11. Governing Law and Jurisdiction: Specification of Maltese law as governing law and jurisdiction for disputes
12. Execution: Signature blocks and execution formalities
1. Security Arrangements: Include when existing security needs to be transferred or new security is being created
2. Regulatory Compliance: Include when the transaction involves regulated entities or requires regulatory approvals
3. Tax Provisions: Include when specific tax implications need to be addressed
4. Release of Original Debtor: Include when original debtor is to be fully released from obligations
5. Step-in Rights: Include when creditor requires right to step in under specific circumstances
6. Further Assurance: Include when additional documentation or actions may be required post-completion
7. Assignment and Transfer: Include when parties need specific rights to assign or transfer their rights/obligations
1. Schedule 1 - Details of the Original Debt: Detailed description of the debt being assumed, including amount, interest rate, and payment terms
2. Schedule 2 - Existing Security: Details of any existing security arrangements related to the debt
3. Schedule 3 - Conditions Precedent Documents: List of required documents and conditions to be satisfied
4. Schedule 4 - Form of Notice to Creditor: Template for formal notice of assumption to creditor
5. Schedule 5 - Corporate Approvals: Copies or forms of required corporate authorizations
6. Appendix A - Payment Schedule: Detailed schedule of payments to be made under the assumed debt
7. Appendix B - Completion Checklist: List of actions and documents required for completion
Authors
Banking and Financial Services
Real Estate
Construction
Manufacturing
Retail
Healthcare
Energy
Infrastructure
Technology
Telecommunications
Professional Services
Transportation and Logistics
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretarial
Credit Control
Corporate Development
Mergers & Acquisitions
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Financial Controller
Treasury Manager
Risk Manager
Company Secretary
Compliance Officer
Business Development Director
Restructuring Officer
Credit Manager
Investment Manager
Corporate Finance Manager
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