Document background
The Security Assignment Agreement is a key security document used in Dutch financing transactions where parties wish to create security over receivables, contractual rights, or other assignable rights. It is commonly used in conjunction with facility agreements, loan agreements, or other primary financing documents where additional security is required. The document ensures compliance with Dutch law requirements for creating valid security through assignment, including specific formalities regarding documentation and notification. It is particularly relevant in scenarios involving trade receivables financing, project finance security packages, or general corporate financing where the borrower has valuable contractual rights or receivables that can serve as security. The agreement needs to address both the creation of security and the practical aspects of managing the assigned rights before and after any enforcement event.
