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Assignment Of Debt Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Assignment Of Debt Agreement is a crucial document used in Saudi Arabian financial and commercial transactions when one party wishes to transfer its rights as a creditor to another party. This document is essential in debt trading, corporate restructuring, and financial portfolio management, ensuring compliance with both Sharia law and Saudi Arabian commercial regulations. The agreement must be structured to meet the requirements of the Saudi Civil Transactions Law and SAMA regulations, while adhering to Islamic finance principles regarding debt transfer (Hawalah). It typically includes detailed information about the original debt, the terms of assignment, consideration payment, and the rights and obligations of all parties involved. This document is particularly important in scenarios involving debt consolidation, asset sales, or when financial institutions need to transfer loan portfolios.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































Clauses






























Relevant Industries

Banking & Financial Services

Islamic Finance

Commercial Lending

Real Estate

Construction

Manufacturing

Trading & Commerce

Investment Services

Asset Management

Debt Collection & Recovery

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Credit Administration

Compliance

Corporate Banking

Investment

Debt Recovery

Portfolio Management

Transaction Management

Islamic Banking

Operations

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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