Debt Novation Agreement for Malta
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Debt Novation Agreement
"I need a Debt Novation Agreement under Maltese law to transfer a 鈧2.5M commercial loan from our subsidiary company to our parent company, with the original bank remaining as creditor, to be completed by March 2025 and including provisions for existing security over company assets."
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1. Parties: Identifies all parties to the agreement: original creditor, original debtor, and new debtor
2. Background: Recitals explaining the existing debt arrangement and the intention to novate
3. Definitions: Defines key terms used throughout the agreement, including 'Original Debt', 'Novation Date', etc.
4. Original Debt: Details of the existing debt being novated, including amount, terms, and original agreements
5. Novation: Core provision effecting the novation, extinguishing old debt and creating new obligation
6. New Debtor's Obligations: Specifies the obligations assumed by the new debtor
7. Release of Original Debtor: Explicit release of the original debtor from obligations
8. Representations and Warranties: Standard representations from all parties regarding capacity and authority
9. Conditions Precedent: Conditions that must be satisfied before novation takes effect
10. Effective Date: Specifies when the novation becomes effective
11. Notices: Communication procedures between parties
12. Governing Law and Jurisdiction: Confirms Maltese law as governing law and jurisdiction for disputes
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.
1. Security Arrangements: Required if existing security needs to be preserved or new security is being provided
2. Regulatory Compliance: Include if any party is regulated by MFSA or if specific regulatory requirements apply
3. Tax Provisions: Include specific tax-related provisions if the novation has significant tax implications
4. Multiple Debt Provisions: Required if multiple debts are being novated simultaneously
5. Consent of Third Parties: Include if third party consents are required for the novation
6. Interest and Costs: Detailed provisions about interest calculations and cost allocation if complex arrangements exist
7. Step-In Rights: Include if any party requires the right to step in under specific circumstances
1. Schedule 1 - Original Debt Documentation: Copies or details of the original debt agreements being novated
2. Schedule 2 - Payment Terms: Detailed payment schedule and terms for the novated debt
3. Schedule 3 - Security Documents: Details of any security arrangements being transferred or created
4. Schedule 4 - Conditions Precedent: List of all documents and conditions required before novation becomes effective
5. Schedule 5 - Form of Notices: Template notices required under the agreement
6. Appendix A - Calculation of Interest: If applicable, detailed methodology for interest calculations
7. Appendix B - Required Consents: Copies of third-party consents obtained for the novation
Authors
Financial Services
Banking
Insurance
Corporate Services
Real Estate
Manufacturing
Retail
Construction
Maritime
Gaming
Healthcare
Technology
Professional Services
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretarial
Credit Control
Debt Management
Corporate Finance
Executive Management
Investment
Portfolio Management
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Finance Manager
Treasury Manager
Debt Management Officer
Risk Manager
Compliance Officer
Company Secretary
Corporate Restructuring Officer
Credit Manager
Financial Controller
Managing Director
Business Development Director
Investment Manager
Portfolio Manager
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