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Assignment Of Debt Agreement
"I need an Assignment of Debt Agreement for transferring a commercial loan portfolio worth 50 million SAR from Al Rajhi Bank to Saudi National Bank, requiring SAMA approval and to be completed by March 2025."
1. Parties: Identification of the Assignor (current creditor), Assignee (new creditor), and original Debtor
2. Background: Context of the original debt, relationship between parties, and purpose of the assignment
3. Definitions: Definitions of key terms used throughout the agreement, including 'Debt', 'Assignment Date', 'Original Agreement', etc.
4. Assignment: Core provision detailing the transfer of rights from Assignor to Assignee, including the specific debt being assigned
5. Consideration: Details of payment or other consideration for the assignment, ensuring Sharia compliance
6. Representations and Warranties: Assignor's confirmations regarding ownership, right to assign, and status of the debt
7. Obligations of the Parties: Specific duties of each party regarding the assignment, including notice requirements and documentation
8. Completion and Effectiveness: Conditions for the assignment to take effect and completion requirements
9. Sharia Compliance: Specific provisions ensuring the assignment complies with Islamic law principles
10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction of Saudi courts
11. Notices: Process for serving notices and communications between parties
12. Execution: Signature blocks and execution requirements
1. Debtor's Consent: Required when the original debt agreement prohibits assignment without debtor's consent
2. Security Interests: Required when the assigned debt includes associated security interests or collateral
3. Regulatory Approvals: Required when the assignment needs approval from SAMA or other regulatory bodies
4. Further Assurance: Optional clause requiring parties to take additional steps to perfect the assignment
5. Partial Assignment: Required when only a portion of the debt is being assigned
6. Costs and Expenses: Optional section detailing responsibility for costs associated with the assignment
7. Confidentiality: Optional provisions regarding confidentiality of the assignment and related information
8. Assignment Restrictions: Optional section limiting further assignment of the debt
1. Schedule 1 - Original Debt Agreement: Copy or details of the original agreement creating the debt
2. Schedule 2 - Debt Details: Specific details of the debt being assigned, including amount, payment terms, and current status
3. Schedule 3 - Assignment Consideration: Details of payment or other consideration for the assignment
4. Schedule 4 - Security Documents: List and copies of any security documents related to the debt
5. Schedule 5 - Form of Notice to Debtor: Template for notifying the debtor of the assignment
6. Schedule 6 - Completion Requirements: Checklist of documents and actions required for completion
7. Appendix A - Required Regulatory Approvals: List of required regulatory approvals and their status
8. Appendix B - Power of Attorney: If required, form of power of attorney for executing related documents
Authors
Banking & Financial Services
Islamic Finance
Commercial Lending
Real Estate
Construction
Manufacturing
Trading & Commerce
Investment Services
Asset Management
Debt Collection & Recovery
Professional Services
Legal
Finance
Treasury
Risk Management
Credit Administration
Compliance
Corporate Banking
Investment
Debt Recovery
Portfolio Management
Transaction Management
Islamic Banking
Operations
Chief Financial Officer
Finance Director
Legal Counsel
Sharia Compliance Officer
Credit Manager
Treasury Manager
Risk Management Officer
Corporate Finance Manager
Debt Recovery Specialist
Investment Manager
Portfolio Manager
Transaction Manager
Commercial Director
Business Development Manager
Corporate Banking Officer
Financial Controller
Legal Operations Manager
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